While there's little variety in the steady utilities industry, FPL Group stands apart: The company has achieved earnings growth of 13% over the last five years, compared with the industry average of 6%. Robert Kleinschmidt, manager of the Tocqueville Fund, says the company will benefit from its dominance in Florida, despite the region's recent struggles. "Florida is going to continue to grow as baby boomers retire and people flock [there for the state's low taxes] -- the story isn't over," he says.
Analysts also see potential in FPL's NextEra Energy division, which is the largest generator of solar and wind energy in North America. NextEra is likely to benefit from stimulus support, wrote Hilliard Lyons analyst David Burks, who rates FPL a buy. "One of the primary reasons for the higher revised earnings guidance is the possibility of using Investment Tax Credit," he wrote.
--M.K.
