Core Insights - The One Big Beautiful Bill Act, signed into law on July 4, will significantly impact markets starting in January, particularly benefiting cyclical sectors outside of tech and AI [1][2] - Société Générale's chief US equity strategist, Manish Kabra, has identified 30 stocks that are expected to benefit from the tax and regulatory breaks provided by the bill, focusing on financials, industrials, and consumer cyclicals [2] Beneficiary Sectors - Key sectors poised for growth include defense, small-caps, consumer, and energy, as they are expected to receive a boost from the new tax and regulatory policies [2] - The average forward price-to-earnings ratio for the identified stocks is 17x, with an expected earnings-per-share growth of 15% in 2026 and 2027 [3] Defense Beneficiaries - General Dynamics Corp (GD): Positioned for defense modernization funding [6] - L3Harris Technologies Inc (LHX): Benefits from investment in advanced systems [6] - Northrop Grumman Corp (NOC): Well-placed for missile defense and space programs [6] - Huntington Ingalls Industries (HII): Supported by naval modernization initiatives [6] Capex Incentive Beneficiaries - United Rentals Inc (URI): Set to gain from increased construction activity [6] - Jacobs Solutions Inc (J): Benefits from infrastructure upgrades and industrial investment incentives [6] - Trimble Inc (TRMB): Aligned with manufacturing investment push [6] - Caterpillar Inc (CAT): Benefits from accelerated depreciation and domestic production incentives [6] - Cummins Inc (CMI): Supported by R&D expensing and industrial investment [6] - Deere & Co (DE): Gains from capex incentives and domestic manufacturing support [6] - Nucor Corp (NUE): Benefits from industrial base expansion and construction demand [6] - Freeport-McMoRan Inc (FCX): Critical supplier for electrification and infrastructure projects [6] - Duke Energy Corp (DUK): Positioned for grid modernization under capex policies [7]

Industry Overview - Utility service providers are benefiting from increased electricity tariffs, accretive acquisitions, cost reductions, and energy-efficiency initiatives, alongside efforts to enhance electric infrastructure resilience and transition to renewable energy sources [1][3] - The maintenance and improvement of utilities' infrastructure relies heavily on capital expenditures for updating and modernizing assets to meet growing demand, particularly from data centers [2] Company Insights: Duke Energy (DUK) - Duke Energy is expanding its renewable energy footprint by promoting electric vehicle (EV) adoption and aims to electrify most of its vehicle fleet by 2030, having already reduced carbon emissions by 44% from 2005 levels [5][6] - The company plans to retire most of its coal capacity by 2030 and fully exit coal by 2035, with a long-term goal of achieving net-zero carbon emissions by 2050 [6] - Duke Energy anticipates capital expenditures of $190-$200 billion over the next decade, with $95-$105 billion expected during 2026-2030, and has invested $9.88 billion in the first nine months of 2025 [15] Company Insights: Exelon Corporation (EXC) - Exelon focuses on the transmission and distribution of clean energy, with a business model that provides stable earnings despite weather-related demand fluctuations, supported by decoupled distribution revenues [7][8] - The company serves over 10 million customers across seven regulatory jurisdictions and plans to invest nearly $38 billion during 2025-2028 to enhance grid reliability and customer needs [16] - Exelon's current return on equity (ROE) is 10.29%, slightly higher than Duke Energy's 9.98%, both outperforming the industry average of 9.9% [14] Financial Performance and Valuation - The Zacks Consensus Estimate for Duke Energy's earnings per share (EPS) indicates a year-over-year increase of 7.12% for 2025 and 6.1% for 2026, while Exelon's EPS is expected to rise by 8% and 4.26% for the same years [10][12] - Duke Energy's shares trade at a forward Price/Earnings (P/E) ratio of 17.55X, while Exelon's P/E is 15.74X, making Exelon relatively more attractive from a valuation perspective [18] Dividend Yield - Duke Energy has a dividend yield of 3.62%, while Exelon's yield is 3.61%, both significantly higher than the S&P 500 composite average of 1.1% [17] Investment Recommendation - Both Duke Energy and Exelon are positioned for growth through strategic investments in infrastructure and renewable energy, but Exelon is favored for its better near-term earnings growth, ROE, and valuation [19][20]

Core Insights - Duke Energy is actively providing energy assistance to families during challenging times, particularly as temperatures drop in the holiday season [1] Group 1: Impact and Contributions - Duke Energy, its Foundation, customers, and employees have contributed over $6.4 million to community agencies through the Share the Light Fund® to help families keep their homes warm and powered [2] - More than one-third of the contributions came from the Duke Energy Foundation, which included an additional $400,000 invested in the summer to assist families during extreme heat [2] - Since 2022, Duke Energy has contributed over $11 million to local nonprofit partners to connect customers in need with assistance [3] Group 2: Community Support and Partnerships - The Share the Light Fund enables partnerships with local organizations like Crisis Assistance Ministry to provide swift assistance to households in need [3] - The company emphasizes the importance of community collaboration to ensure homes remain safe, warm, and connected during winter [3] Group 3: Company Overview - Duke Energy is a Fortune 150 company headquartered in Charlotte, N.C., serving 8.6 million electric customers across several states and owning 55,100 megawatts of energy capacity [5] - The company also serves 1.7 million natural gas customers in multiple states [5] Group 4: Energy Transition Initiatives - Duke Energy is undergoing an ambitious energy transition focused on customer reliability and value, investing in electric grid upgrades and cleaner energy generation methods, including natural gas, nuclear, renewables, and energy storage [6]

Core Viewpoint - The equity market serves as a significant mechanism for wealth creation or destruction over the long term, with Pacifica Yield focusing on undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Group 1 - Pacifica Yield aims to pursue long-term wealth creation [1] - The strategy includes a focus on undervalued yet high-growth companies [1] - High-dividend tickers, REITs, and green energy firms are also key areas of interest [1]

Core Viewpoint - The equity market serves as a significant mechanism for wealth creation or destruction over the long term, with Pacifica Yield focusing on undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Group 1 - Pacifica Yield aims to pursue long-term wealth creation [1] - The strategy includes a focus on undervalued yet high-growth companies [1] - High-dividend tickers, REITs, and green energy firms are also key areas of interest [1]

Group 1: Default and Restructuring - Bondholders are resisting restructuring efforts, indicating a lack of expectation for a state bailout or improvement in the property market, suggesting a potential default may occur [1][4][6] - Avanka has liabilities of 364 billion yuan, which could surpass defaults seen with Evergrande and Country Garden, highlighting that no company is considered "too big to fail" in China [4][5] - The central government is focused on avoiding a systemic banking crisis rather than supporting the property market, which is viewed as "dead money" [5][8] Group 2: Local Government and Economic Impact - Local governments, including Shenzhen Metro, are facing revenue shortages due to a 40-50% decline in land sales, limiting their ability to bail out property companies [8][9] - The property sector's peak contribution to GDP was 31%, and a significant loss in this sector could lead to long-term economic stagnation, as new tech investments may not compensate for the decline [9][10] - Fixed asset investment in property has decreased by 14%, indicating ongoing downturns in the sector [12] Group 3: Property Market Trends - New home prices in China have dropped by 2.1%, with significant declines in tier three cities, while some areas like Shanghai show slight increases [9][11] - Actual property prices are reported to have fallen by 40-80%, contradicting official statistics [10][11] - Production in the property sector has decreased from 1.67 billion square meters in 2019 to approximately 780 million square meters last year, with expectations of further declines before a potential plateau [13]

Group 1 - Duke Energy is one of the largest energy companies in the United States, serving almost 9 million customers in its electric utilities division and an additional 1.7 million customers in its natural gas division [1] - The company is based in North Carolina and plays a significant role in the energy sector [1] Group 2 - The Investment Doctor emphasizes a portfolio consisting of a mixture of dividend and growth stocks, focusing on high-quality ideas in the small-cap space [1] - The investment group European Small Cap Ideas offers exclusive access to actionable research on appealing Europe-focused investment opportunities [1] - Features of the investment group include two model portfolios, weekly updates, educational content, and an active chat room for discussions [1]

Group 1 - Duke Energy is one of the largest energy companies in the United States, serving almost 9 million customers in its electric utilities division and an additional 1.7 million customers in its natural gas division [1] - The company is based in North Carolina and plays a significant role in the energy sector [1] Group 2 - The Investment Doctor emphasizes a portfolio consisting of a mixture of dividend and growth stocks, focusing on high-quality ideas in the small-cap space [1] - The investment group European Small Cap Ideas offers exclusive access to actionable research on appealing Europe-focused investment opportunities [1] - Features of the investment group include two model portfolios, weekly updates, educational content, and an active chat room for discussions [1]

Core Insights - Piedmont Natural Gas is reminding customers about energy-saving tips and assistance programs as temperatures are expected to drop significantly in the Southeast [1] Energy Management Tools - The Equal Payment Plan (EPP) allows customers to manage their budgets by leveling out natural gas bills into a predictable monthly amount, calculated based on annual usage [3] - Customers can access their gas usage history online to identify trends and savings opportunities [7] Financial Assistance Programs - The Share the Warmth program provides funds to local agencies to assist families with utility bills, regardless of the energy source [4] - The Low Income Home Energy Assistance Program (LIHEAP) offers financial assistance for natural gas, electric, and other energy sources [4][5] Energy-Saving Tips - Set thermostats to the lowest comfortable setting and consider installing smart or programmable thermostats to reduce energy use [7] - Utilize natural sunlight by keeping drapes open during the day and closing them at night to insulate the home [7] - Regularly change air filters to ensure heating systems operate efficiently [7] - Manage water heater temperatures and consider energy-efficient options like tankless water heaters [7] - Seal homes and air ducts to prevent heat loss, potentially saving 10% to 20% on heating and cooling bills [7] - Evaluate insulation needs in ceilings, floors, and walls to improve energy efficiency [7] Company Overview - Piedmont Natural Gas, a subsidiary of Duke Energy, serves over 1.2 million customers across North Carolina, South Carolina, and Tennessee [8]

Core Insights - Duke Energy (DUK) is heavily investing in renewable energy and modernizing its power grid to meet long-term decarbonization goals and support new electricity demands [1][8] - The company plans to invest $190-$200 billion over the next decade, with significant allocations for clean energy projects [3][8] - Duke Energy is participating in a $400 million Department of Energy initiative to accelerate the deployment of Small Modular Reactors (SMRs) [2][8] Investment Plans - Duke Energy's planned investment of $190-$200 billion over the next decade includes $95-$105 billion specifically from 2026 to 2030 [3] - In the first nine months of 2025, Duke Energy has already invested $9.88 billion and is on track to reach approximately $15 billion for the full year [4] Market Demand and Growth - The investments are aimed at boosting clean energy capacity, supporting increased electricity demand, and enhancing the overall system [4] - The company is expected to benefit from rising demand for reliable, low-carbon electricity, creating new growth and revenue opportunities [1] Earnings Estimates - The Zacks Consensus Estimate indicates a year-over-year EPS increase of 7.12% for 2025 and 6.19% for 2026 [7][9] Competitive Landscape - Other utilities are also making significant investments; for example, NextEra Energy plans to invest nearly $74 billion through 2029, while Exelon Corporation plans to invest nearly $38 billion from 2025 to 2028 [5][6] Stock Performance - Duke Energy's stock is trading at a premium with a forward 12-month price-to-earnings ratio of 17.04X compared to the industry average of 14.75X [10] - Over the past year, Duke Energy's shares have increased by 4.8%, while the industry has seen an 18.5% growth [12]