Utilities Attract More Investors, Citigroup Analyst Says

Carolyn Kaster

PPL

Don't knock regulations: Citigroup's Greg Gordon says some investors swear by them. The equity analyst joined "Squawk on the Street" to offer his take on the utility industry -- and named his top utility stock picks.

Gordon told CNBC's Erin Burnett that the current market is a "tremendous environment" for utilities, and noted that the best of the group -- which he says includes PSEG, Entergy and Exelon -- are up 20% this year. Citigroup has "buy" ratings for Constellation Energy and PPL Energy.

The analyst said that he's seeing a lot of rotation into more regulated names, as investors worry about a softening economy -- and seek the reliability that regulations can bring.

Constellation Energy, PSEG, Exelon and Entergy are investment banking clients of Gordon's employer, Citigroup.

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