CHICAGO, March 9, 2011 /PRNewswire/ -- Today, Zacks Equity
Research discusses the Alternative Energy Industry, including
CenterPoint Energy Inc. (NYSE: CNP), DPL Inc. (NYSE:
DPL), DTE Energy Company (NYSE: DTE) and Public Service
Enterprise Group Inc. (NYSE: PEG).
(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)
A synopsis of today's Industry Outlook is presented below. The
full article can be read at
http://www.zacks.com/stock/news/48670/Alternative+Energy+Industry+Outlook+%96+March+2011
The growth outlook of alternative energy companies is directly
related to the fortunes of the economy and inversely to the prices
of petroleum products. Trends on both fronts appear be favoring the
alternative energy industry at present.
The U.S. economy has shaken off the negative momentum that
appeared to be taking hold in the middle of 2010. The fourth
quarter GDP report, despite the subsequent negative revision, is
showing the resumption of sustainable economic growth. Importantly,
the drivers of economic growth appear to have shifted the more
stable consumer spending side.
Major economic reports, such as the ISM Indices, leading
indicators and consumer confidence are all showing signs of renewed
strength. Even the labor market appears to have turned the corner
as the weekly jobless claims numbers and the February nonfarm
payroll report showed.
The recent spike in oil prices in the wake of unrest in the
Middle East has been casting a
negative shadow over this emerging positive economic momentum. But
we believe that a temporary oil spike will do limited, if any,
damage to this emerging positive economic narrative. And we think
that the fear premium in oil prices will come down as the situation
in Libya improves.
This improving macroeconomic environment should have favorable
impact on electricity demand. According to the Energy Information
Administration (EIA), U.S. industrial electricity sales are
expected to rise year-over-year by 1.7% in 2011 and 2.3% in 2012.
This helps improve the operating environment of electricity
generators and distributors.
A number of traditional utility companies have growing
alternative energy operations. But the fortunes of some of these
companies, particularly those with significant fossil-fuel
exposures, are less attractive than their peers.
In the utilities space, we are less optimistic about the
prospects of CenterPoint Energy Inc. (NYSE: CNP), DPL
Inc. (NYSE: DPL), DTE Energy Company (NYSE: DTE) and
Public Service Enterprise Group Inc. (NYSE: PEG).
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