Three Electrifying Stocks

The stock (symbol BGC) gained 25% over the past year through April 25. The shares, which closed at $71.70 on April 25, trade at 15 times the $4.93 per share that analysts expect the company to earn this year. Coleman rates the stock a "buy" and says it's worth $77. General Cable will report first-quarter results April 30.

One way for utilities to save money is to build a more efficient power grid. That's where ABB enters the picture. The Swiss company expects to produce annual earnings gains of 25% over the next few years, largely because of strong sales of power-transmission equipment that reduces energy losses between power plant and end-user.

It also makes industrial-automation equipment, such as high-efficiency motors and robotics. The power-transmission business accounted for half of ABB's $29.2 billion in sales over the past 12 months.

ABB delivered impressive first-quarter results. The company reported April 24 net income of $1 billion for the period, an increase of 87% from the same quarter in 2007. Michel Demaré, ABB's top executive, credited utilities' continued investment in power infrastructure as the key reason for the results.

The shares have surged 56% over the past year. But given the company's growth prospects, the stock appears reasonably priced. At $30.07, ABB's American depositary receipts ( ABB) trade at 19 estimated 2008 earnings of $1.57 per share. The stock is a member of the Kiplinger Green 25.

Once the cables and equipment are purchased, utilities need to hire contractors to put all the pieces together. Houston-based Quanta Services is the leader in this market.

The company won four of the five largest contracts for grid work in 2007. The multi-year contracts guarantee a recurring stream of revenues for their duration. Croft says Quanta will generate annual earnings growth of 20% or more over the next three years to five years.

The stock ( PWR) is hardly a bargain. The shares, which jumped 5% on April 25, to $27.13, trade at 32 times forecasted 2008 earnings of 84 cents per share. The shares have fallen 4% in the past year.

Quanta's results can be volatile quarter to quarter because a portion of the business is dependent on revenues from restoring power lines damaged from storms and natural disasters. So it's wise to watch this stock closely and buy on pullbacks.