After a solid end to last year, utility stocks have been among the weakest performers this year. However, with rate cuts expected in the near future, utility stocks are expected to become attractive to investors again. Moreover, transitioning from a petro-state to an electro-state could be a long-term tailwind for the utility sector.
However, not all utility stocks are expected to perform well. It could be wise to avoid ReNew Energy Global Plc (RNW), given its poor fundamentals. On the other hand, I think Centrica plc (CPYYY) is well-positioned to capitalize on the industry tailwinds.
