Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ: PSCU)

最新ニュース Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU)

Invesco S&P SmallCap Utilities & Communication Services ETF

Communication Services

Utilities

Industrials

Technology

Consumer Cyclical

The fund generally will invest at least 90% of its total assets in the securities of small-capitalization U.S. utility companies and companies in the communication services sector that comprise the underlying index. These companies are principally engaged in providing either energy, water, electric or natural gas utilities. The fund is non-diversified.

Otter Tail Corporation

IAC/InterActive Corp

Madison Square Garden Company (the)

Mge Energy Inc

Avista Corp

California Water Service Group

American States Water Co

Cogent Communications Holdings Inc

Lumen Technologies Inc

Chesapeake Utilities Corp

Echostar Corp

Telephone & Data Systems Inc

Mdu Resources

Tegna Inc

Cinemark Holdings Inc

Earnings results this week spanned several sectors represented in Dan Loeb's Third Point portfolio, offering new insight into the <a href="https://www.benzinga.com/earnings">firm&#8217;s Q4 2024 positions.</a>
Cinemark Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNK#NYSE">CNK</a>): The investor reduced its stake from 7,000,000 shares <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624005927/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">in </a>the third quarter of 2024 to 3,750,000 shares <a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514625001713/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">in </a>the fourth quarter of 2024.
<ul class="wp-block-list">
<li>The company registered&nbsp;first-quarter EPS losses of 32 cents, compared with the analyst consensus estimate of 10 cents loss and sales of&nbsp;$540.70 million&nbsp;(down&nbsp;6.6%&nbsp;year over year) outpaced the <a href="https://www.benzinga.com//node/45169195" target="_blank" rel="noreferrer noopener">street view of&nbsp;$540.68 million</a>.</li>
<li>JP Morgan analyst David Karnovsky writes that compared to their forecast of $515 million in revenue and $26 million in EBITDA, the outperformance was driven across key metrics, including higher attendance, improved per-patron spending, <a href="https://www.benzinga.com//node/45209210" target="_blank" rel="noreferrer noopener">and additional revenue streams</a>.</li>
<li>D-Box technologies announced expansion of its relationship with Cinemark and will add over 70 D-box haptic-enabled screens across as many as 25 Cinemark theaters in the United<a href="https://www.benzinga.com//node/45282827"> States in the next eighteen months</a>.</li>
<li>Year to date, Cinemark fell about 2.13%, compared to the Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>), which declined about 5.73%&nbsp;over the same time frame.</li>
</ul>
Corpay, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPAY#NYSE">CPAY</a>): Third Point had trimmed its stake from 765,000 shares in the&nbsp;third quarter&nbsp;of 2024 to 610,000 shares in&nbsp;the&nbsp;fourth quarter&nbsp;of 2024.
<ul class="wp-block-list">
<li>The company reported first quarter adjusted EPS of&nbsp;$4.51, in line with the consensus, and sales of&nbsp;$1.01 billion<a href="https://www.benzinga.com//node/45238012" target="_blank" rel="noreferrer noopener">, missing the street view of&nbsp;$1.02 billion</a>.</li>
<li>Corpay slightly narrowed its 2025 adjusted EPS guidance to $20.80 to $21.20 (from $20.75 to $21.25 prior) vs. <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">consensus estimate of $21.08</a>.</li>
<li>The company has increased its 2025 sales guidance to $4.38 billion to $4.46 billion (from its prior range of $4.35 billion to $4.45 billion) vs. the analyst consensus estimate of $4.40 billion.</li>
<li>UBS analyst Roger Boyd lowered the price forecast from $400 to $365, and Raymond James analyst slashed the price <a href="https://www.benzinga.com/quote/cpay/analyst-ratings" target="_blank" rel="noreferrer noopener">forecast from $417 to $414</a>.</li>
<li>AvidXchange Holdings, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVDX#NASDAQ">AVDX</a>) inked a deal to be acquired&nbsp;by&nbsp;Corpay and&nbsp;TPG Inc.&nbsp;(NASDAQ:<a href="https://www.benzinga.com/stock/TPG#NASDAQ" target="_blank" rel="noreferrer noopener"> TPG</a>) for $10&nbsp;per share in cash, <a href="https://www.benzinga.com//node/45250388" target="_blank" rel="noreferrer noopener">valuing the company at&nbsp;$2.2 billion</a>.</li>
<li>Year to date, Corpay rose about 3.32%, almost similar to SMI 3Fourteen Full-Cycle Trend ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FCTE#NASDAQ">FCTE</a>), which rose about 3.16%&nbsp;over the same time frame.</li>
</ul>
Jacobs Solutions Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/J#NYSE">J</a>):&nbsp;Loeb had 1,650,000 shares in the company&nbsp;as of the fourth quarter of 2024.
<ul class="wp-block-list">
<li>The company reported&nbsp;a second-quarter&nbsp;2025&nbsp;revenue increase of 2.2%&nbsp;year-over-year to&nbsp;$2.91 billion, topping the&nbsp;$2.18 billion&nbsp;consensus and adjusted EPS of $1.43, which came <a href="https://www.benzinga.com//node/45229501" target="_blank" rel="noreferrer noopener">above the consensus of&nbsp;$1.39</a>.</li>
<li>Jacobs sees adjusted net revenue growing mid-to-high single digits, with an EBITDA margin of&nbsp;13.8-14.0%&nbsp;and FCF conversion exceeding&nbsp;100%&nbsp;of net income.</li>
<li>The company expects adjusted EPS of&nbsp;$5.85&nbsp;–&nbsp;$6.20&nbsp;(versus the&nbsp;$6.03&nbsp;consensus) for 2025.</li>
<li>RBC Capital analyst Sabahat Khan raised the price forecast from&nbsp;$152&nbsp;to&nbsp;$154, Truist Securities analyst Jamie Cook boosted the price forecast from&nbsp;$130&nbsp;to&nbsp;$141, while UBS analyst Steven Fisher lowered <a href="https://www.benzinga.com/quote/J/analyst-ratings" target="_blank" rel="noreferrer noopener">the price forecast from&nbsp;$154&nbsp;to&nbsp;$152</a>.</li>
<li>Year to date, the company&#8217;s share declined about 4.57% vs. Valued Advisers Trust Kovitz Core Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQTY#NYSE">EQTY</a>), which rose about 0.04%&nbsp;over the same time frame.</li>
</ul>
Primo Brands Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PRMB#NYSE">PRMB</a>): The investor acquired a stake in the company, attaining 2,400,000 shares&nbsp;in the fourth quarter 2024.
<ul class="wp-block-list">
<li>The company&nbsp;reported&nbsp;first-quarter&nbsp;revenue growth of&nbsp;42.1%&nbsp;year-on-year to&nbsp;$1.61 billion, missing the analyst consensus estimate of&nbsp;$1.62 billion, while adjusted EPS of 29 cents&nbsp;beat the <a href="https://www.benzinga.com//node/45292629" target="_blank" rel="noreferrer noopener">consensus&nbsp;estimate of 23 cents</a>.</li>
<li>&nbsp;For 2025, Primo sees net sales growth of&nbsp;3%–5% and expects <a href="https://www.benzinga.com/calendars/guidance" target="_blank" rel="noreferrer noopener">adjusted EBITDA of&nbsp;$1.6 billion–$1.628 billion</a>.</li>
<li>Mizuho analyst John Baumgartner initiated coverage on with an Outperform rating <a href="https://www.benzinga.com/quote/prmb/analyst-ratings" target="_blank" rel="noreferrer noopener">and a price forecast of&nbsp;$43</a>.</li>
<li>Year to date, Primo Brands increased about 3.35%, compared to Global X Clean Water ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AQWA#NASDAQ">AQWA</a>), which rose about 7.49%&nbsp;over the same time frame.</li>
</ul>
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/news/large-cap/25/05/45234285/amazon-meta-microsoft-earnings-put-dan-loebs-portfolio-to-the-test" target="_blank" rel="noreferrer noopener">Amazon, Meta, Microsoft Earnings Put Dan Loeb&#8217;s Portfolio To The Test</a></li>
</ul>
Photo: Shutterstock

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PRMB

PSCU

Earnings Just Put Dan Loeb's Bets To The Test — Here's What Held Up

Lumen Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUMN#NYSE">LUMN</a>) shares are trading higher on Wednesday after announcing a strategic partnership <a href="https://www.benzinga.com/pressreleases/25/04/n44709530/lumen-partners-with-google-cloud-to-deliver-next-generation-network-infrastructure-for-the-ai-era" target="_blank" rel="noreferrer noopener">with </a><a href="https://www.benzinga.com/pressreleases/25/04/n44709530/lumen-partners-with-google-cloud-to-deliver-next-generation-network-infrastructure-for-the-ai-era" target="_blank" rel="noreferrer noopener">Alphabet Inc.&#8217;s </a><a href="https://www.benzinga.com/pressreleases/25/04/n44709530/lumen-partners-with-google-cloud-to-deliver-next-generation-network-infrastructure-for-the-ai-era" target="_blank" rel="noreferrer noopener">(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google Cloud.</a>
The collaboration was unveiled at the Next 25 event and is geared toward bolstering cloud and network capabilities in the era of artificial intelligence.
The effort aims to accelerate digital transformation as companies adopt AI-powered solutions at scale, per a press release.
A cornerstone of this alliance includes integrating Google&#8217;s newly launched Cloud WAN with Lumen&#8217;s connectivity services.
This integration allows Lumen&#8217;s Network-as-a-Service platform — including managed SD-WAN and security features—to operate within Google Cloud regions, modernizing enterprise networking capabilities.
The companies will also enable ultra-fast 400 Gbps direct fiber links between Google Cloud data centers and customer sites.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/04/44710071/delta-air-lines-q1-flies-past-expectations-grounds-fy25-outlook-amid-economic-uncertainty" rel="noreferrer noopener">Delta Air Lines Wants To Protect Margins And Cash Flow Citing Economic Uncertainty, Does Not Reaffirm FY25 Outlook</a>
This move will broaden Google Cloud access across more than 50,000 Lumen-connected locations, significantly increasing network reach and speed.
Further, Lumen plans to link its encrypted, high-security network infrastructure to Google Distributed Cloud&#8217;s air-gapped deployments.
This initiative aims to protect sensitive data for clients in heavily regulated sectors like finance, government, and critical infrastructure.
&#8220;Networks are the foundation of the AI revolution,&#8221; said Dave Ward, Lumen&#8217;s chief technology and product officer.
He added that the fusion of Lumen&#8217;s secure network with Google&#8217;s global infrastructure gives businesses the tools to manage data faster, more securely, and with greater flexibility for AI and cloud applications.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, LUMN stock has gained over 121% in the past year.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>).
LUMN Price Action: Lumen Technologies shares are trading higher by 4.48% to $3.39 at publication Wednesday.
Read Next:
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<li><a href="https://www.benzinga.com/25/04/44710817/heres-where-bridgewater-is-placing-its-bets-as-ray-dalio-warns-of-a-once-in-a-lifetime-breakdown" target="_blank" rel="noreferrer noopener">Here&#8217;s Where Bridgewater Is Placing Its Bets As Ray Dalio Warns Of &#8216;Once-In-A-Lifetime&#8217; Breakdown</a></li>
</ul>

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Why Lumen Technologies Stock Is Up On Wednesday

Dan Loeb&#8216;s Third Point LLC made major changes in the portfolio in <a href="https://www.benzinga.com/markets/equities/25/02/43755111/billionaire-investor-dan-loeb-boosts-stake-in-mark-zuckerbergs-meta-elon-musks-tesla-but-sold-these-three-mag-7-stocks-in-q4" target="_blank" rel="noreferrer noopener">the fourth quarter of 2024</a>.
Also, in February, the portfolio&nbsp;returned&nbsp;-2.3% on an NAV basis, underperforming the MSCI World Index (-0.7%) and the S&amp;P 500<a target="_blank" href="https://www.benzinga.com/news/large-cap/25/03/44384767/dan-loebs-portfolio-feels-the-strain-as-tesla-amazon-pge-lose-ground" rel="noreferrer noopener"> Index (-1.3%) for the month</a>.
Reported in February, these five stocks—held as of Dec. 31, 2024—have each surged over 30% in the past year.
Financial company&nbsp;Brookfield Corporation&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BN#NYSE">BN</a>) shares jumped around 34.97% compared to its peer&nbsp;BlackRock, Inc.&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), which rose 17.47% in the last&nbsp;year.
Third Point LLC held 4,990,000 shares of BN&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514625001713/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">as&nbsp;</a>of the fourth quarter of 2024, an increase from 4,725,000 shares&nbsp;<a href="https://www.sec.gov/Archives/edgar/data/1040273/000108514624005927/xslForm13F_X02/infotable.xml" target="_blank" rel="noreferrer noopener">in&nbsp;</a>the third quarter of 2024.
Wireless Telecommunication Services firm Telephone and Data Systems, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>) stock rocketed around 137% in the past year compared to the Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>), with growth of 15.86% and closest peer T-Mobile US, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>), which witnessed an increase of 60.74% in the same time frame.
Third Point held 6,000,000 shares&nbsp;of TDS as&nbsp;of the fourth quarter of 2024, which is a significant increase from 2,875,000 as of the third quarter of 2024.
Entertainment company Cinemark Holdings Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNK#NYSE">CNK</a>) shares jumped 44.23% vs. Invesco S&amp;P Smallcap 600 Pure Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RZG#NYSE">RZG</a>), which was up 2.27%, and its peer Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), which dipped 16.47% in the past year.
The investor held 3,750,000 shares&nbsp;as&nbsp;of CNK the fourth quarter of 2024, a significant reduction from 7,000,000 shares as of the third quarter of 2024.
Natural gas company EQT Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>) shares rose 55.51% in the past year compared to Invesco Energy Exploration &amp; Production ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>), which declined 15.43% in the same time frame.
Third Point held 2,950,000 EQT shares&nbsp;as&nbsp;of the fourth quarter of 2024, an increase from 1,950,000 shares as of the third quarter of 2024.
Tourism company Global Blue Group Holding AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GB#NYSE">GB</a>) rose 48% in the last year. Loeb held 8,387,601 shares in the company in both the third and fourth quarters of 2024.
Read Next:
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<li><a href="https://in.benzinga.com/news/large-cap/25/03/44115397/dan-loebs-third-point-slashes-microsoft-stake-analysts-blame-disappointing-azure" target="_blank" rel="noreferrer noopener">Dan Loeb&#8217;s Third Point Slashes Microsoft Stake, Analysts Blame &#8216;Disappointing&#8217; Azure</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

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These 5 Dan Loeb Portfolio Stocks Are Up Over 30% In The Past Year

Lumen Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUMN#NYSE">LUMN</a>) shares are trading higher on Monday after the company announced it is partnering with Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) to significantly increase Meta&#8217;s network capacity and <a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/n41426506/lumen-and-meta-partner-to-drive-ai-network-expansion" rel="noreferrer noopener">help drive its AI ambitions</a>.
Lumen&#8217;s partnership offers Meta enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and enabling it to serve billions daily.
Ashley Haynes-Gaspar, Lumen&#8217;s EVP and chief revenue officer, said, &#8220;We&#8217;ve transformed our company to meet this demand. As Meta&#8217;s customers use more AI services across its platforms, we&#8217;re helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs.&#8221;&nbsp;
Lumen Technologies&nbsp;said its Private Connectivity Fabric&nbsp;enables long-term network capacity for Meta&#8217;s AI.
Alex-Handrah Aimé, director of Meta&#8217;s Network Investments stated, &#8220;Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways.&#8221;
Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41200026/chinese-hackers-breach-at-t-verizon-networks-in-major-wiretap-data-theft-putting-us-national-securit" rel="noreferrer noopener">Chinese Hackers Breach AT&amp;T, Verizon Networks In Major Wiretap Data Theft Putting US National Security At Risk: Report</a>
Lumen will report third quarter 2024 results <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">on&nbsp;November 5, 2024</a>.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>) and First Trust Cloud Computing ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SKYY#NASDAQ">SKYY</a>).
Price Action: LUMN shares are up 9.50% at $7.38 at the last check Monday.
Image via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/government/24/10/41299017/lawmakers-demand-answers-from-at-t-verizon-and-lumen-over-chinese-hack" target="_blank" rel="noreferrer noopener">Lawmakers Demand Answers From AT&amp;T, Verizon, And Lumen Over Chinese Hack</a></li>
</ul>

SKYY

Lumen And Meta Join Forces To Boost AI With Flexible, On-Demand Network Solutions

For investors seeking momentum, Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pscu#NASDAQ">PSCU</a>) is probably on the radar. The fund just hit a 52-week high and is up 22.6% from its 52-week low price of $46.76/share.
But are more gains in store for this ETF? Let&#39;s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
<h3>PSCU in Focus</h3>
Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF offers exposure to the securities of U.S. utility companies and companies in the communication services sector. It has key holdings in interactive media services, diversified telecom services, water utilities and media. The product charges 29 bps in annual fees.
<h3>Why the Move?</h3>
The utility sector has been an area to watch lately, given investors&#39; drive toward safety in defensive investments. Recession fears gripped Wall Street after a downbeat U.S. job report, which sparked huge selling across stocks. Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil.
<h3>More Gains Ahead?</h3>
Currently, PSCU has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.
<a href="https://www.zacks.com/stock/news/2319360/utilities-etf-pscu-hits-new-52-week-high?cid=CS-BENZ-FT-etf_news_and_commentary-2319360">To read this article on Zacks.com click here.</a>

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Utilities ETF Hits New 52-Week High

Telephone and Data Systems, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>) shares are trading higher after the company announced a definitive deal to sell its wholly owned subsidiaries OneNeck IT Solutions and OneNeck Data Center Holdings to <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39134041/tds-to-sell-its-oneneck-business-to-us-signal" rel="noreferrer noopener">US Signal Company for an undisclosed amount</a>.
US Signal, a portfolio company of&nbsp;Igneo Infrastructure Partners, is acquiring all of OneNeck&#8217;s operations, encompassing its data centers, cloud hosting, and solutions provider services.
Vicki L. Villacrez, TDS Executive Vice President and CFO, said, &#8220;As part of our capital allocation process, we are prioritizing assets to determine what is strategic and can improve our competitiveness.&#8221;&nbsp;
&#8220;The sale of OneNeck provides additional capital that can be used to support TDS Telecom&#8217;s fiber program, which includes investing in communities throughout the US with quality broadband connectivity. I believe that OneNeck&#8217;s business complements US Signal and I am excited about future opportunities for both associates and the operations.&#8221;
The transaction is expected to close in the third quarter of 2024, pending the satisfaction of customary closing conditions.
Michael Ryder, US Signal board chair and co-head of Igneo in&nbsp;North America, stated, &#8220;This acquisition is an important step toward fulfilling the company&#8217;s<a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/n39134316/us-signal-to-acquire-oneneck-expanding-nationwide-data-center-footprint-it-infrastructure-network" rel="noreferrer noopener"> expansion plans in the U.S. middle market.</a>&#8220;
Investors can gain exposure to the stock via SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>) and Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>).
Price Action: TDS shares are up 12.9% at $22.46 at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Asset Sales

Why Is Telephone And Data Systems Stock Surging Today?

Madison Square Garden Sports Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSGS#NYSE">MSGS</a>) reported fiscal third-quarter 2024 revenue of $429.95 million, exceeding the Wall Street&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/n38578839/madison-square-garden-sports-corp-reports-fiscal-2024-third-quarter-results" rel="noreferrer noopener">analyst estimate of $420.74 million</a>. Revenue grew by 12% year over year.
This increase was primarily due to higher ticket-related revenues, suite revenues, food, beverage and merchandise sales, local media rights fees, and revenues from league distributions.
The New York Knicks basketball team played five more regular-season home games at The Garden arena in the current year than in the prior year.
Quarterly earnings per share totaled $1.57,&nbsp;missing the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of $2.60</a>.
Madison Square reported an adjusted operating income of $88.7 million, up by 3% year over year, primarily due to the increase in revenues.&nbsp;
The ticket-related revenues increased by $29.9 million compared to the prior year period, primarily due to the Knicks playing additional games at The Garden and the higher average Knicks and New York Rangers hockey team per-game revenue.
Suite revenues increased by $10.9 million compared to the prior year. Food, beverage, and merchandise sales increased&nbsp;by $4.3&nbsp;million compared to the preceding year&#8217;s period,&nbsp;primarily due to higher average per-game revenue.
Local media rights fees increased by $1.3 million compared to the prior year, primarily due to contractual rate increases.&nbsp;
The company held $44.7 million in cash and equivalents as of March 31, 2024.
Madison Square Garden Sports stock lost 10% in the past 12 months. Investors can gain exposure to the stock via Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>) and ETC 6 Meridian Small Cap Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SIXS#NYSE">SIXS</a>).
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38584705/federal-reserve-takes-cautious-stand-on-inflation-powell-signals-preference-for-r">Federal Reserve Takes Cautious Stand On Inflation, Powell Signals Preference For Rate Cuts Over Hikes</a>
MSGS Price Action: Madison Square Garden Sports shares are trading lower by 1.19% to $184.94 on the last check Thursday.
Photo: <a href="https://www.shutterstock.com/g/pabkov">Pabkov</a> via Shutterstock

Earnings

Sports

MSGS

SIXS

Madison Square Garden Sports' Topline Climbs Amid Higher Ticket Sales, Yet Earnings Fall Short

Cinemark Holdings&nbsp;Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNK#NYSE">CNK</a>)&nbsp;reported a fiscal first-quarter 2024 sales decline of 5.2% year-on-year to $579.20 million, beating the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/b38576394/cinemark-holdings-inc-reports-first-quarter-2024-results" rel="noreferrer noopener">analyst&nbsp;consensus of $560.38 million</a>. EPS of $0.19 beat the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst&nbsp;consensus loss of $(0.20)</a>.
Admissions revenue decreased 6.8% to $289.8 million, and concession revenue declined 4.9% to $224.2 million, driven by a 7.5% decrease in attendance to 39.7 million patrons.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/general/entertainment/24/03/37421433/netflixs-2024-gains-is-cinemas-loss-amc-shares-slump-despite-box-office-boost-from-taylor-s" rel="noreferrer noopener">Netflix's&nbsp;2024 Gains Are&nbsp;Cinema's&nbsp;Loss: AMC Shares Slump Despite Box Office Boost From Taylor Swift, Beyoncé</a>
The worldwide average ticket price was $7.30, and concession revenue per patron was $5.65.
As of March 31, 2024, the&nbsp;company's&nbsp;aggregate screen count was 5,708, and the company had commitments to open three new theatres and 33 screens over the next two years.
The company generated $70.7 million of adjusted EBITDA in the quarter versus $86.2 million a year ago.&nbsp;
Cinemark held $788.6 million in cash and equivalents as of March 31, 2024.
"2024 North American industry box office has kicked off better than expected, declining only modestly versus 2023 despite last&nbsp;year's&nbsp;strike-induced headwinds,"&nbsp;stated&nbsp;Sean Gamble,&nbsp;Cinemark's&nbsp;President and CEO.
Cinema operators are doling out deals and discounts to entice moviegoers as threats loom from streaming content.
Cinemark Holdings stock gained close to 4% in the last 12 months. Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>) and&nbsp;Invesco Leisure And Entertainment ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PEJ#NYSE">PEJ</a>).
Price Action: CNK shares are trading higher by 0.30% at $17.48 at the last check Friday.
Photo via Wikimedia Commons

NFLX

PowerShares ETF Leisure & Entertainment Port

Are Cinema's Finally Bouncing Back? Cinemark's Q1 Profit Paints A Bright Picture

Consolidated Communications Holdings Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CNSL#NASDAQ">CNSL</a>) reported a fourth-quarter fiscal 2023 revenue decline of 7.0% year-on-year to $275.2 million, missing the analyst&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/03/b37479323/consolidated-communications-announces-fourth-quarter-and-full-year-2023-financial-results" rel="noreferrer noopener">consensus of $276.9 million</a>.
Adjusted EPS loss of $(0.26) beat the analyst&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">consensus loss of $(0.36)</a>.
Revenue from the Consumer segment declined 1.2% Y/Y to $ 113.85 million as growth in Broadband was offset by a decline in Voice and Video services.
Due to Data and Voice services decline, Commercial segment revenue decreased 5.4% Y/Y to $96.21 million.
Carrier segment revenue declined 7.8% Y/Y to $34.82 million due to Data and Voice services decline.
Adjusted EBITDA declined 14.7% Y/Y to $86.7 million. The margin declined 285 bps to 31.5%.
CNSL generated $11.99 million in operating cash flow and held $4.8 million in cash and equivalents.
Capital expenditures totaled $91.5 million, driven by 49,132 new fiber passings, fourth-quarter fiber adds.
Investors can gain exposure to the stock via&nbsp;Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSCU#NASDAQ">PSCU</a>) and&nbsp;Syntax Stratified SmallCap ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSLY#NYSE">SSLY</a>).
CNSL Price action: Consolidated Communications Holdings shares were up 0.12% at $4.29 Tuesday morning at publication.
Read Next: <a href="https://www.benzinga.com/news/24/03/37483412/whats-going-on-with-tesla-stock-tuesday">What&#8217;s Going On With Tesla Stock Tuesday?</a>
Photo: Shutterstock

Tech

CNSL

SSLY

Consolidated Communications Holdings Reports Decline In Q4 Earnings Across Key Segments, Adjusted EBITDA Drops 14.7%

Finding exchange traded funds chock full of companies that are positively revising earnings estimates is becoming increasingly difficult in the current environment.
A <a href="https://www.benzinga.com/news/earnings/20/02/15424879/3-etfs-chock-full-of-companies-with-negative-earnings-revisions">recent examination of ETFs</a> littered with companies doing just the opposite proves as much. However, there are some funds that are homes to companies that are lifting forecasts and, not surprisingly, those ETFs are performing better than the broader market.
&ldquo;Buoyed by their improving outlooks, these funds have performed better as a group than the market overall. On average these funds declined 3.0% over the past 30 days, compared with -5.3% for the S&amp;P 500 SPDR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>) and the and -5.7% for the iShares MSCI ACWI ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/acwi#NASDAQ">ACWI</a>) of global stocks,&rdquo; said the <a href="https://www.etfrc.com/index.php">ETF Research Center (ETFRC) in a recent note</a>.
Here are three ETFs where the components are looking good on the earnings front.
<h3>Invesco Dynamic Semiconductors ETF (PSI)</h3>
This one may comes as a surprise given the recent weakness among semiconductor stocks, but the Invesco Dynamic Semiconductors ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/psi#NYSE">PSI</a>) tops the ETFRC list for biggest positive earnings revisions over the past month at 5.9%.
PSI follows the Dynamic Semiconductor Intellidex Index, which is &ldquo;designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value,&rdquo;<a href="https://www.invesco.com/us/financial-products/etfs/product-detail?productId=ETF-PSI"> according to Invesco</a>.
Nvidia (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) and Advanced Micro Devices (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amd#NASDAQ">AMD</a>) combine for 12% of PSI&#39;s weight.
<h3>Invesco Global Listed Private Equity ETF (PSP)</h3>
The Invesco Global Listed Private Equity ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/psp#NYSE">PSP</a>) is one of the funds in a sparesely populated ETF category and features a collection of private equity firms, business development companies (BDCs) and master limited partnerships (MLPs).
Proving that these type of companies have handled the recent volatility with some earnings aplomb, positive revisions here check in at 4.1%, according to ETFRC data.
PSP is also an income play as highlighted by the fund&#39;s trailing 12-month distribution <a href="https://www.invesco.com/us/financial-products/etfs/product-detail?productId=ETF-PSP">rate of 6.34%</a>.
<h3>Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (PSCU)</h3>
Even utilities belied their normally defensive reputation during the recent market swoon and small caps were hardly better. However, that combination isn&#39;t derailing the Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pscu#NASDAQ">PSCU</a>) from being a surprise on the earnings, placing third on the ETFRC list behind PSI and PSP.
Over 55% of PSCU&#39;s roster is allocated to communication services, but its top four utilities holdings combine for over 36% of the fund&#39;s weight.
Positive earnings revisions have been north of 3% for PSCU over the past month.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/20/02/15445090/a-fabulous-time-for-this-fang-etn">A Fabulous FANG ETN</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/20/02/15390887/consider-quick-upside-from-downside-in-chips-with-this-etf">How To Deal With Chip Stocks Right Now</a>

Long Ideas

ACWI

NVDA

PowerShares Exchange-Traded Fund Trust Dynamic Semiconductor Portfolio

PowerShares Listed Private Equity Portfolio

3 ETFs For Stocks With Positive Earnings Revisions

The Federal Reserve <a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/09/14452555/will-us-interest-rates-ever-drop-below-zero">cut interest rates again Wednesday</a>, lowering the benchmark U.S. lending rate by 25 basis points, but for many investors, that wasn&#39;t enough as stocks tallied only modest gains on the day.
Market participants seemed to me concerned with <a href="https://investorplace.com/2019/09/dow-jones-today-fed-reserve-rate-cut/">rising division within the Fed</a> and whether or not the central bank will lower rates again than the fact that it did so on Wednesday. Overall, just one of the 11 sectors in the S&amp;P 500 finished higher yesterday: rate-sensitive utilities.
Just 21 exchange traded funds hit record highs on Wednesday and of that group, five were dedicated utilities. Four investors looking for something a little more adventurous that basic large-cap utilities funds, here are some ideas to consider.
<h3>Invesco S&amp;P 500 Equal Weight Utilities ETF (RYU)</h3>
Extending its year-to-date gain to nearly 20%, the Invesco S&amp;P 500 Equal Weight Utilities ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ryu#NYSE">RYU</a>) was one of the utilities ETFs hitting record highs on Wednesday. The fund, which follows the S&amp;P 500 Equal Weight Telecommunication Services &amp; Utilities Index, is ideal for investors looking to avoid some of the concentration risk associated with typical utilities ETFs.
None of RYU&#39;s 28 holdings exceed weights of 4.12%. One of the trade offs for the reduction in concentration risk is that RYU carries a lower dividend yield (2.54%) compared to cap-weighted utilities ETFs. Additionally, RYU&#39;s earnings multiples are mostly inline with standard utilities ETFs. On the bright side, the equal-weight fund has been less volatile than cap-weighted rivals this year.
See Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/19/09/14448270/why-this-dividend-etf-can-work-in-a-variety-of-climates">A Dependable Dividend ETF</a>
<h3>Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (PSCU)</h3>
The Invesco S&amp;P SmallCap Utilities &amp; Communication Services ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pscu#NASDAQ">PSCU</a>) isn&#39;t one of the utilities ETFs that hit record highs, but the fund is up an admirable 11% this year. However, there are risks associated with this ETF that don&#39;t make it appropriate for all investors.
For investors looking for the above-average yields and reduced volatility associated with large-cap utilities, PSCU is an ETF that could easily disappoint. While PSCU will usually be less volatile than a traditional small-cap benchmark, the lack of growth that comes with the utilities sector will restrain this fund&#39;s performance compared to broader small-cap products.
<h3>John Hancock Multifactor Utilities ETF (JHMU)</h3>
The John Hancock Multifactor Utilities ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jhmu#NASDAQ">JHMU</a>) was one of the utilities ETFs in Wednesday&#39;s all-time high club and offers investors credible, factor-based exposure to a sector dominated by cap-weighted strategies.
Like Hancock&#39;s other sector ETFs, JHMU focuses on factors, such as lower price, higher profitability and smaller market values. JHMU follows the John Hancock Dimensional Utilities Index, an index crafted by Dimensional Fund Advisors, which has been developing multi-factor strategies for over 30 years.
This may be one of investors&#39; best bets as an alternative to usually staid utilities ETFs.

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JHMU

Rydex ETF Trust Rydex S&P Equal Weight Utilities ETF

3 Unique Utilities ETFs To Consider

The combination of the utilities sector ranking as easily the best-performing sector this year, interest rates that appear to be remaining low for the foreseeable future and investors&#39; overt preference for defensive sectors, it stands to reason that some market observers view utilities stocks as expensive.
That is often the case with utilities, a sector that historically trades at multiples above the broader market. It might also stand to reason that utilities exchange-traded funds adhering to momentum strategies or those heavy on small-caps would be pricey as well. Such ETFs include the PowerShares Dynamic Utilities (ETF) (NYSE: <a class="ticker" href="/stock/pui#NYSE">PUI</a>) and the PowerShares S&amp;P SmllCp Utlts Pfo (NASDAQ: <a class="ticker" href="/stock/pscu#NASDAQ">PSCU</a>).
<h3>Understanding Utilities</h3>
The S&amp;P 500 Utilities Index recently topped a price-to-earnings ratio of 18.5, high even by the standards of a historically expensive group. Expectations that the Federal Reserve will be unable to raise interest rates this year have a lot to do with the multiple assigned to the utilities sector.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/07/8186478/financial-services-etfs-searching-for-momentum">Financial Services ETFs Searching For Momentum</a></bzrelatedlink>
&ldquo;Declining interest rates are typically a function of slow economic growth and relatively low rates of global inflation. Primarily meant to prime the economic pump, lower interest rates have also had the unintended result of increasing flows into the utility sector as investors have sought new sources of yield &mdash; boosting P/E ratios in the process,&rdquo; <a href="https://www.blog.invesco.us.com/how-much-is-stock-worth-valuation">according to PowerShares</a>.
<h3>Honing In On PUI</h3>
PUI tracks the Dorsey Wright Utilities Technical Leaders Index, which &ldquo;is designed to identify companies that are showing relative strength (momentum),&rdquo; according to <a href="https://www.invesco.com/portal/site/us/financial-professional/etfs/product-detail?productId=PUI&amp;title=powershares-dwa-utilities-momentum-portfolio">PowerShares</a>, the fourth-largest ETF issuer.
PUI is arguably one of the more diverse utilities ETFs in terms of cap exposure. In fact, large-cap utilities account for just 27 percent of the fund&#39;s weight, roughly equivalent to the ETF&#39;s small-cap allocation. Mid-cap utilities are 45.6 percent of PUI&#39;s 34-stock lineup.
Still, it is all about interest rates for utilities stocks and ETFs. After all, the sector is the most negatively correlated to rising rates of any group.
&ldquo;Treasury yields and the P/E ratios for the S&amp;P 500 Utilities Sector Index between 1990 and 2000 &mdash; depicted by the blue dotted lines and the solid blue trend line. During this time, the 10-year Treasury yield also explained 75 percent of the variation in the utility sector&rsquo;s P/E ratio,&rdquo; added PowerShares. &ldquo;The same relationship after the 2008 financial crisis is illustrated by the red boxes and red trend line. Here the relationship is more linear and not as robust. Nonetheless, all three scatter plots support the idea that investors typically pay more for a stock when interest rates are low.&rdquo;

PowerShares ETF Trust Dynamic Utilities Portfolio

Utilities ETFs: Maybe Not As Pricey As Rumored

Utilities stocks and exchange-traded funds faced plenty of challenges last year as the Federal Reserve set the stage for its first interest rate increase in nearly a decade. With the central bank poised to raise borrowing costs several times this year, investors should approach the utilities sector and its ETFs with caution.
&ldquo;The utilities sector experienced a challenging 2015, with its performance the third-worst of the 10 S&amp;P 1500 sectors. But, in the early days of 2016, the sector&#39;s relative safety has offered appeal. Based on a recent review by SNL Financial of upside to sell-side analyst target prices, a number of these companies could have a strong bounce back in 2016,&rdquo; said <a href="http://trymsatoday.com/">S&amp;P Capital IQ</a> in a new research note.
<h3>XLU And VPU</h3>
Last year, the Utilities SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), the largest utilities ETF, and the Vanguard Utilities ETF (NYSE: <a class="ticker" href="/stock/vpu#NYSE">VPU</a>), the second-largest utilities ETF, each lost 3.9 percent.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/media/cnbc/15/12/6063224/dan-nathan-reduces-risk-on-his-utilities-spdr-etf-trade">Dan Nathan Reduces Risk On His Utilities SPDR ETF Trade</a></bzrelatedlink>
XLU focuses on large-cap utilities names, such as Duke Energy Corp (NYSE: <a class="ticker" href="/stock/duk#NYSE">DUK</a>) and Southern Co (NYSE: <a class="ticker" href="/stock/so#NYSE">SO</a>), while VPU mixes in mid- and <a href="http:// http://www.benzinga.com/trading-ideas/long-ideas/15/11/5961111/yellen-holds-the-cards-for-rate-sensitive-etfs">small-cap utilities</a> in its lineup.
<h3>PSCU</h3>
Speaking of small-cap utilities, the PowerShares S&amp;P SmllCp Utlts Pfo (NASDAQ: <a class="ticker" href="/stock/pscu#NASDAQ">PSCU</a>) was last year&#39;s best-performing utilities ETF, with a gain of nearly 6 percent.
&ldquo;S&amp;P Capital IQ Investment Policy Committee recommends investors have less exposure to the utilities sector relative to the S&amp;P 500 index due to concerns that these &lsquo;bond proxies&lsquo; will suffer as interest rates move higher. Yet there are some undervalued stocks, according to our research. For example, Christopher Muir, utilities equity analyst for S&amp;P Capital IQ, has a strong buy recommendation on Excelon Corporation (NYSE: <a class="ticker" href="/stock/exc#NYSE">EXC</a>) based on P/E-growth analysis and supported by an above-average dividend yield,&rdquo; said S&amp;P Capital IQ.
Excelon is XLU&#39;s seventh largest holding at a weight of 4.8 percent.
<h3>UTES</h3>
 Another ETF to consider is the Reaves Utilities ETF (NASDAQ: <a class="ticker" href="/stock/utes#NASDAQ">UTES</a>). UTES, the first actively managed utilities ETF, <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5940677/utilities-are-still-attractive-if-the-fed-does-this">debuted in September</a>.
Reaves Asset Management, which has over $2 billion in assets under management, &quot;relies on both qualitative processes (management interviews, field research, macro factor analysis) and quantitative processes (modeling, valuation, technicals) to inform investment decisions,&quot; <a href="https://www.virtus.com/vsitemanager/Upload/Docs/Reaves%20Utilities%20ETF%20-%20Fact%20Sheet.pdf">according to the firm</a>.
UTES is up 1.4 percent since coming to market. UTES offers another advantage for investors over other actively managed funds: daily disclosure of its holdings. Some issuers of actively managed products, including some wanting to wear the exchange-traded label, are maintaining an old Wall Street mentality, refusing to disclose their holdings on a daily basis.
Image Credit: <a href="https://pixabay.com/en/power-utility-pole-electricity-731824/">Public Domain</a>

Short Ideas

Intraday Update

UTES

Different Ways To Turn The Lights On With Utilities ETFs

It is an easy economic scenario to understand. Utilities, arguably more than any other sector, are adversely affected by rising interest rates. A spike in rates means higher borrowing costs for a capital intensive business and, on a historical basis, high interest rate environments have prompted some utilities to pare dividends.

	Concerns over rising interest rates explain in large part why the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) and other formerly darling utilities ETFs explain why investors have punished these products. In the past month, XLU has tumbled about eight percent, an exceptionally large, volatile move for the sector SPDR fund with the lowest beta to the S&amp;P 500.

	If one analyst is right, more pain could be ahead for some utilities stocks on the dividend front. In a note out Friday, <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/06/3658108/bernstein-offers-list-of-names-in-utilities-sector-unlik">Bernstein analyst Hugh Wynne</a> identified eight utilities that are least likely to sustain their dividends.

	In terms of the potential dividend impact from the group Wynne highlighted on XLU, Consolidated Edison (NYSE: <a class="ticker" href="/stock/ed#NYSE">ED</a>) and Pepco Holdings (NYSE: <a class="ticker" href="/stock/pom#NYSE">POM</a>) were identified as unlikely to sustain their current dividends. Those stocks combine for 4.7 percent of XLU's weight. The analyst said shares of Pepco are overvalued.

	Wynne did say there are some companies in the utilities space that can sustain their dividends. His list includes CMS Energy (NYSE: <a class="ticker" href="/stock/cms#NYSE">CMS</a>), Edison International (NYSE: <a class="ticker" href="/stock/eix#NYSE">EIX</a>), Wisconsin Energy (NYSE: <a class="ticker" href="/stock/wec#NYSE">WEC</a>), OGE Energy (NYSE: <a class="ticker" href="/stock/oge#NYSE">OGE</a>), El Paso Energy (NYSE: <a class="ticker" href="/stock/ee#NYSE">EE</a>) and Integrys (NYSE: <a class="ticker" href="/stock/teg#NYSE">TEG</a>). Edison Interesting, Wisconsin Energy, CMS and Integrys combine for about 7.8 percent of XLU's weight.

	One unheralded ETF could be affected by potential utilities dividend cuts as well. The PowerShares S&amp;P SmallCap Utilities Portfolio (NASDAQ: <a class="ticker" href="/stock/pscu#NASDAQ">PSCU</a>), which is down just 3.2 percent in the past month, holds significant weights to some of the stocks Wynne sees as vulnerable to potential dividend reductions.

	Wynne's list of utilities that could lower dividends included Avista (NYSE: <a class="ticker" href="/stock/ava#NYSE">AVA</a>), UIL Holdings (NYSE: <a class="ticker" href="/stock/uil#NYSE">UIL</a>) and UNS Energy (NYSE: <a class="ticker" href="/stock/uns#NYSE">UNS</a>). Those three stocks combine for 19.3 percent of PSCU's weight. PSCU has a trailing 12-month dividend yield of 3.69 percent, which is 16 basis points below XLU. The small-cap offering charges annual fees of 0.29 percent.

	For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Analyst Color

Dividends

Events

Utilities ETFs Could be Vulnerable to Dividend Cuts

On the heels of a strong move higher that started in mid-November, some of the largest small-cap ETFs have kept the good times going in 2013. For example, the iShares Russell 2000 Index (NYSE: <a class="ticker" href="/stock/iwm#NYSE">IWM</a>) and the Vanguard Small Cap ETF (NYSE: <a class="ticker" href="/stock/vb#NYSE">VB</a>) are both higher by more than 7.5 percent on a year-to-date basis.

Strength in small-caps, an asset class often lauded for being an accurate gauge of risk appetite, has helped fuel a broader rally in U.S. stocks to start the year. That is the good news. The bad news is that if small-caps really are a measuring stick for animal spirits, then there are ample signs a broader market pullback could be imminent.

Affirming that theory means looking beyond IWM and VB because, in fairness to those ETFs, both have been solid performers as of late. Both ETFs have gained more than 1.8 percent in the past week alone. However, other small-cap ETFs are telling a different story, one that could be concerning for those that are long stock.

Market Vectors India Small-Cap ETF (NYSE: <a class="ticker" href="/stock/scif#NYSE">SCIF</a>)
Bad news keeps on <a href="http://www.benzinga.com/markets/bonds/13/03/3381913/more-bad-news-for-india-etfs">mounting for India ETFs</a> and the small-cap funds have been taking the most savage beatings. One day it is the market admonishing the Indian government's proposed spending spree, the next day it is a major ratings agency reminding investors India could easily lose its investment grade credit rating.

None of those factors have been good news for SCIF, which was already in trouble after failing to break through resistance in the $11.50 area earlier this year. Since then, SCIF has tumbled all the way to $9 area. Earlier today, the ETF touched a new 52-week at $8.95. What is ominous about that is not just the fact that $8.95 is a 52-week low, but also the fact that $8.95 is barely more than 20 cents removed from SCIF's all-time low. 

With the way things look right now for Indian small-caps, even those investors with extremely long-term time horizons can afford to be patient because better pricing appears to be a foregone conclusion with SCIF and related funds.

Guggenheim China Small Cap ETF (NYSE: <a class="ticker" href="/stock/hao#NYSE">HAO</a>)
It is not a stretch to say that traders and investors that actively follow Chinese equities either <a href="http://www.cbsnews.com/video/watch/?id=50142079n">FXI</a>) this year, features an almost 18 percent allocation to the financial services sector.

Like IWM and VB, HAO has turned in a decent performance (up 1.5 percent) in the past week, but a drop below support at $24 could mean HAO's next stop is the $21-$22 area.

PowerShares S&amp;P SmallCap Utilities Portfolio (NASDAQ: <a class="ticker" href="/stock/pscu#NASDAQ">PSCU</a>)
The PowerShares S&amp;P SmallCap Utilities Portfolio has just $30 million in assets under management and, generally speaking, the regulated utilities that investors prize as defensive plays are large-cap names. In other words, some folks probably would not consider PSCU a "bellwether ETF," although it has the potential to be just that.

Unlike the other funds highlighted here, PSCU is neither technically vulnerable nor is it being hampered by macro issues such as government budgets and property bubbles. PSCU has been solid year-to-date with a gain of 6.6 percent and a 30-day SEC yield of almost 3.3 percent could be a source of attraction for some income investors.

On that note, PSCU is worth keeping an eye on because a sudden increase in assets will indicate two things. First, it will say investors want to keep some small-cap exposure during a pullback, but favor low-beta sectors over the likes of financials, technology or emerging markets. Second, inflows to PSCU will also indicate investors are willing to pay up for playing defense. With a P/E ratio of 15.33, the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) is trading at the higher end of its historical valuation range. PSCU's P/E is 17.3, <a href="http://www.invescopowershares.com/products/overview.aspx?ticker=PSCU">according to PowerShares data</a>.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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Before deciding to play defense by running into the boring low-beta world of utilities ETFs, investors might want to stick with the large-cap funds such as the Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>), the Vanguard Utilities ETF (NYSE: <a class="ticker" href="/stock/vpu#NYSE">VPU</a>) and the PowerShares Dynamic Utilities Portfolio (NYSE: <a class="ticker" href="/stock/pui#NYSE">PUI</a>). The reason: Small-cap gas utilities face earnings pressure resulting from "exposure to natural gas prices through trading and marketing, exploration and production and natural gas storage," according to a research note published by S&amp;P Capital IQ.

As a result, S&amp;P Capital IQ rates the PowerShares S&amp;P SmallCap Utilities Portfolio (Nasdaq: <a class="ticker" href="/stock/pscu#Nasdaq">PSCU</a>) Underweight. 

"Natural gas storage spreads represent the price at which gas is taken out of storage, usually in the winter months for higher prices, versus when the gas is put into storage, usually in the spring, summer and fall periods for lower prices. The warm temperatures this winter resulted in recent storage levels for natural gas reaching record levels, and in relatively low winter prices for natural gas. On top of this, gas utilities are likely to see much lower distribution volumes, and utilities with transmission pipelines are likely to see lower volumes as well, in our view," S&amp;P said in the note.

PSCU, which celebrated its second birthday earlier this month, was introduce as part of the PowerShares suite of sector ETFs designed to be small-cap equivalents of the Select Sector SPDRs. Since its April 2010 debut, PSCU has lagged the returns offered by XLU by about 1.1%. 

Home to 23 stocks, PSCU charges an expense ratio of 0.29% and has almost $44 million in assets under management. Piedmont Natural Gas (NYSE: <a class="ticker" href="/stock/pny#NYSE">PNY</a>) and Southwest Gas (NYSE: <a class="ticker" href="/stock/swx#NYSE">SWX</a>) combine for over 18% of the ETF's weight. Investors should also note eight telecom stocks combine for almost 15.6% of PSCU's weight.

"PSCU garners an Overall ETF Ranking of Underweight from S&amp;P Capital IQ. Some characteristics that lead to this ranking, in comparison to other ETFs analyzed by S&amp;P Capital IQ Equity Research, include an unfavorable Performance Analytics category score driven by negative inputs for S&amp;P Fair Value and S&amp;P STARS; and a marketweight Risk Considerations category score, reflecting a negative input for S&amp;P Credit Rating," S&amp;P said in the note.

PSCU is down about 4.4% year-to-date with almost all of that loss coming in the past eight weeks or so after the ETF failed to break resistance around $31.50. The fund now trades below its 50- and 200-day moving averages. PSCU features a dividend yield of 3.18%, which is about 70 basis points less than the yield offered by XLU.

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