Surging U.S. Utility Valuation Makes Citigroup Cautious
Utility stocks are so expensive after leading the S&P 500 Index to a record that “coming into the trade late could be punishing,” according to Tobias Levkovich, Citigroup Inc.’s chief U.S. equity strategist. Levkovich cited the price-to-sales ratio for the S&P 500 Utilities Index in a report Tuesday. The valuation gauge rose above two in June for the first time in more than 25 years, according to data compiled by Bloomberg. Utilities climbed 18 percent between the S&P 500’s records on May 21, 2015, and Monday.