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Prop Desk: Boring Utilities Get Exciting

If you think utilities are old and boring, think again. This sector could be hot to trot!

Earlier in the month, a Goldman Sach sparked new interest in the space when one of their analysts suggested that regulated utilities are becoming a good investment opportunity.

Specifically, analyst Michael Lapides said he was becoming "incrementally more positive given valuation levels, the interest rate environment, and relative underperformance versus the S&P 500."



Since Lapides wrote that note shares of the Utilities SPDR have climbed about 8% with Exelon , FPL Group and Duke Energy among the top holdings. Just take a look at the chart!

If this boring class of stocks is starting to get interesting, how should you trade it?

I like both Southern and Duke , muses Pete Najarian. Or take a look at TECO . This is a great area for anyone looking for dividend yield.

PG&E is my favorite name in the space, adds Guy Adami. At 11 times forward earnings and a 4.5% dividend it's attractive.

Why not game it with the XLU, adds Tim Seymour. That gives you broad exposure to almost all the names mentioned above.

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Trader disclosure: On June 26th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Seymour Owns (AAPL), (BAC), (EEM), (FXI), (NOK), (TSO), (TUR); Seygem Asset Management Is Short (RSX); Adami Owns (AGU), (C), (GS), (MSFT), (INTC), (NUE), (BTU); Najarian Owns (GS) Call Spreads; Najarian Owns (JPM) And Is Short (JPM) Calls; Najarian Owns (PALM) Call Spread; Najarian Owns (S) Calls; Najarian Owns (WFC) Put Spread; Najarian Owns (YHOO) Call Spread; Najarian Owns (ESI) Call Spread; Terranova Owns (TER), (XBI), (BTU), (ABT), (RIMM), (HES), (MS),(MSFT)

Terranova Works For (VRTS); Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE); Virtus Diversifier PHOLIO Owns (DBC); Virtus Diversifier PHOLIO Owns (DBV); Virtus Investment Partners Owns More Than 1% Of (ABD); Virtus Investment Partners Owns More Than 1% Of (CAL); Virtus Investment Partners Owns More Than 1% Of (CLB); Virtus Investment Partners Owns More Than 1% Of (DLR); Virtus Investment Partners Owns More Than 1% Of (EPR); Virtus Investment Partners Owns More Than 1% Of (EXR); Virtus Investment Partners Owns More Than 1% Of (IGE); Virtus Investment Partners Owns More Than 1% Of (MEE); Virtus Investment Partners Owns More Than 1% Of (DBC); Virtus Investment Partners Owns More Than 1% Of (DBV); Virtus Investment Partners Owns More Than 1% Of (DBA); Virtus Investment Partners Owns More Than 1% Of (SKT); Virtus Investment Partners Owns More Than 1% Of (UA); Virtus Investment Partners Owns More Than 1% Of (WBMD); Virtus Investment Partners Owns More Than 1% Of St Mary Land & Exploration Co; Virtus Investment Partners Owns More Than 1% Of Seagate Tax Refund Rights

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