FBR Likes PG&E (NYSE:PCG), SCANA (NYSE:SCG), Among Regulated Utilities

Among regulated utilities, FBR Capital says their top pick is Pacific Gas & Electric Co. (NYSE:PCG), and right behind them SCANA Corporation (NYSE:SCG).

Responding to questions on whether or not regulated utilities expensive to the S&P, FBR said, "A recurring question comes up during client meetings: Are regulated utilities expensive to the S&P? This question is particularly relevant now. Regulated utilities are trading at a forward P/E multiple of approximately 13x, a premium to the S&P trading at approximately 12x. This represents a relative P/E ratio for
utilities of 1.1x the S&P, which is high relative to the historical
average of 0.76x...Within the regulated group, we currently favor PG&E
(FBR Top Pick) and SCANA. These two companies have the best earnings
growth prospects, in our view, and are currently trading at a discount
to other regulated peers. They also happen to be among the least
interest-rate sensitive within our coverage universe."

PG&E closed the week at $45.82, gaining $0.60 on Friday, or 1.33 percent. SCANA closed at $40.45, up $0.78 on Friday, or 1.97 percent.

Volume for both companies was down in comparison to the 3-month daily average.