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Pennon (first half earnings 29 November)
The value of utilities as safe stocks has taken something of a battering after Centrica's warning last week, when the shares dropped 15%. However, water firm Pennon is predicted to maintain its growth, with expectations of 2% this year, and over 10% for the following twelve months. In addition, dividends look to remain healthy, with yields of 4.8%, and over 5% in the coming years. And, unlike Centrica, these are well covered.
Regulatory scrutiny will still fall on the sector, but the big energy names will be the ones with plenty to worry about, rather than Pennon and its peers. Pennon is expected to report year-on-year earnings growth of 5%, to 24p per share. In a year when markets have rallied strongly, Pennon’s lack of performance is notable. However it continues to find support around £7.64, so as long as this holds a bounce back, £8.20 is possible. Below this £7.10, the 2015 low, is a possibility.