Every dollar held by a consumer acts like a vote. And sometimes, consumers vote with their feet. The past few years has seen an acceleration to a trend that involves millions of Americans moving.
For the most part, that’s meant a shift from more northern and colder climates to warmer ones. And a move from housing markets far above the national average to ones that are closer to the average, or even under it.
The move towards the Gulf coast states, particularly Florida, could bode well for a type of company that usually isn’t known for its growth: Utilities.
That sector has held up well so far this year, with a slight gain amid the current bear market. And NextEra Energy (NEE) looks like it could deliver both income and growth from here.
Shares are up 7 percent over the past year, and revenues are up a staggering 32 percent. Plus, the company has a 15 percent profit margin, a high level for a utility.
Action to take: Investors can likely see further long-term growth in shares here. The stock currently yields about 1.9 percent. That’s a bit low for a utility on average, but with more share growth potential, investors can likely see great long-term returns with this stock.
For traders, the January $85 calls are an at-the-money trade. Last going for about $6.00, they can likely deliver mid-double-digit gains in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.