Top 3 Utilities Stocks That May Collapse In Q1

As we enter the first quarter of 2025, investors are keeping a close eye on the utilities sector, which has been a source of strong performance in recent months. However, not all utilities stocks are created equal, and some may be at risk of collapsing in the coming months. In this article, we will examine the top 3 utilities stocks that may be in danger of a significant pullback in Q1 2025.

Ameren Corp (AEE)

Ameren Corp (AEE) has been a strong performer in recent months, with its stock price gaining around 11% over the past month. However, the company's RSI value of 75.4 indicates that the stock is overbought, which could lead to a correction in the near term. Additionally, the company's 52-week high of $98.25 is close to the current price, suggesting that the stock may be overvalued. While Ameren has increased its quarterly cash dividend, the company's high valuation and overbought conditions may put it at risk of a pullback in Q1 2025.



Exelon Corp (EXC)

Exelon Corp (EXC) has also been a strong performer, with its stock price gaining around 13% over the past month. However, like Ameren, EXC's RSI value of 76.8 indicates that the stock is overbought, which could lead to a correction in the near term. The company's 52-week high of $42.46 is also close to the current price, suggesting that the stock may be overvalued. While Exelon has posted better-than-expected quarterly earnings, the company's high valuation and overbought conditions may put it at risk of a pullback in Q1 2025.



Duke Energy Corp (DUK)

Duke Energy Corp (DUK) has also been a strong performer, with its stock price gaining around 10% over the past month. However, the company's RSI value of 71.6 is still relatively high, indicating that the stock is overbought. While Duke Energy has maintained its dividend and announced a share repurchase program, the company's high valuation and overbought conditions may put it at risk of a pullback in Q1 2025.



Conclusion

While the utilities sector has been a strong performer in recent months, not all utilities stocks are created equal. Ameren Corp (AEE), Exelon Corp (EXC), and Duke Energy Corp (DUK) may be at risk of a significant pullback in Q1 2025 due to their high valuations and overbought conditions. Investors should be cautious when considering these stocks and monitor their performance closely in the coming months.