Investors might want to bet on Fortis (FTS) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings pictur ...

Core Viewpoint - Investors in Fortis Inc. should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Mar 20, 2026 $30.00 Put option [1] Group 1: Implied Volatility - Implied volatility indicates the market's expectations for future price movements, with high levels suggesting potential significant changes or upcoming events that could impact the stock [2] - Options traders often seek high implied volatility options to sell premium, aiming to benefit from the decay of options value if the stock does not move as expected [4] Group 2: Analyst Sentiment - Fortis currently holds a Zacks Rank 3 (Hold) within the Utility - Electric Power Industry, which is positioned in the bottom 40% of the Zacks Industry Rank [3] - Over the past 60 days, two analysts have raised their earnings estimates for Fortis for the current quarter, resulting in a consensus estimate increase from 73 cents per share to 76 cents per share [3]

Core Insights - The article highlights five overlooked stocks that remain resilient during periods of market fear, as indicated by the rising VIX and declining consumer confidence [1] Group 1: Market Context - The CBOE Volatility Index (VIX) reached 31.77, an increase of 83.0% from the previous month, indicating heightened market fear [1] - The S&P 500 is down 1.5% year-to-date, while consumer sentiment is at 56.4, below the recessionary threshold of 60 [1] Group 2: Featured Stocks - **Fluor (NYSE: FLR)**: Stock up 23.24% over the past year and 13.75% year-to-date, despite a recent 13.82% drop due to a challenging Q4. The company has a $1.4 billion share repurchase program and a recovery thesis supported by $1.35 billion from NuScale monetization [1] - **Interactive Brokers (NASDAQ: IBKR)**: Stock up 40.64% over one year, benefiting from increased trading volume and net interest income. Commission revenue rose 22% and net interest income rose 20% year-over-year in Q4 2025 [1] - **Medtronic (NYSE: MDT)**: Revenue grew 8.74% year-over-year to $9.017 billion, with strong performance in cardiovascular and diabetes segments. The company has a history of consistent dividend growth for over 25 years [1] - **Fortis (NYSE: FTS)**: Stock up 30.46% over one year and 10.94% year-to-date, with a dividend yield of 4.34%. The company has a low beta of 0.443 and a strong record of annual dividend increases for over 50 years [1] - **Ameren (NYSE: AEE)**: Stock up 14.80% over the past year, with a strong operating cash flow of $3.353 billion. The company has a long-term EPS growth target of 6% to 8% through 2030, supported by a $31.8 billion infrastructure investment plan [1]

Economic Overview - Wholesale prices increased by 0.5% month-over-month in January, exceeding the consensus estimate of 0.3%, and rose 2.9% year-over-year [3][10] - Core PPI, excluding food and energy, jumped 0.8% month-over-month and 3.6% year-over-year, both figures above the Federal Reserve's 2% target [4][10] - A shrinking labor market is raising concerns about the economy's health and increasing fears of a recession [6] Market Sentiment - Recent tech selloff has put pressure on stocks, leading to a decline in all three major indexes and erasing most gains for the year in February [1] - The Federal Reserve maintained interest rates in the range of 3.25-3.5% during its January meeting, which may affect investor sentiment following the latest inflation readings [5] Defensive Stock Recommendations - **Atmos Energy Corporation (ATO)**: Engaged in regulated natural gas distribution, serving 3.3 million customers across eight states, with an expected earnings growth rate of 9% and a current dividend yield of 2.14% [7][8][10] - **Consolidated Water Co. Ltd. (CWCO)**: Focuses on seawater desalination and water distribution, with an expected earnings growth rate of 11.6% and a current dividend yield of 1.48% [11][12][10] - **Fortis, Inc. (FTS)**: Operates in electric and gas utility sectors, with an expected earnings growth rate of 5.4% and a current dividend yield of 3.24% [13][10]

Core Viewpoint - There are significant opportunities in dividend stocks that can provide strong total returns over the long term, despite existing market risks [1] Group 1: Investment Opportunities - Three highlighted stocks offer healthy dividend yields, solid balance sheets, and impressive cash flow generation capabilities [3] - Enbridge (ENB) has a dividend yield in the mid-5% range and has maintained uninterrupted dividends for over 70 years, with 31 consecutive years of increases [4] - Fortis (FTS) is a utility company benefiting from structural tailwinds and is expected to deliver 6-7% annual dividend increases over the next five years [10] Group 2: Company Profiles - Enbridge's cash flow is stable due to long-term volume contracts, making it a defensive dividend stock in the energy sector [5] - Enbridge's payout ratio exceeds 100%, but management is focused on debt reduction and improving operating efficiency [6] - Fortis serves millions of customers across Eastern Canada, the U.S., and the Caribbean, positioning it well for future energy demand [8][9]

We came across a bullish thesis on Fortis Inc. on Danny’s Substack by Danny Green. In this article, we will summarize the bulls’ thesis on FTS. Fortis Inc.'s share was trading at $56.33 as of February 18th. FTS’s trailing and forward P/E were 22.70 and 21.41 respectively according to Yahoo Finance. energy Energy transmission lines. Photo by Snapwire on Pexels Fortis Inc. is positioned as a regulated electric and gas utility delivering predictable, rate-base-driven growth rather than hyper-growth. The co ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Fortis (FTS) - Fortis currently holds a Momentum Style Score of A and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - The stock has shown a price increase of 5.24% over the past week, outperforming the Zacks Utility - Electric Power industry, which rose by 4.55% [6] - Over the past month, Fortis shares increased by 9.45%, compared to the industry's 7.16% [6] - In the last quarter, Fortis shares rose by 10.22%, and over the past year, they increased by 26.65%, while the S&P 500 only moved 1.74% and 13.08%, respectively [7] Trading Volume - Fortis has an average 20-day trading volume of 1,059,620 shares, which is a useful indicator of market interest and price movement [8] Earnings Outlook - In the past two months, four earnings estimates for Fortis have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $2.56 to $2.63 [10] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions [10] Conclusion - Given the strong momentum indicators and positive earnings outlook, Fortis is positioned as a promising investment opportunity [12]

Financial Data and Key Metrics Changes - Reported earnings per common share for Q4 2025 were CAD 0.83, CAD 0.04 higher than Q4 2024, with adjusted EPS at CAD 3.53, a 25-cent increase from 2024 [11][12][13] - Reported EPS for 2025 was CAD 3.40, reflecting a 16-cent increase from 2024, despite losses from the disposition of investments in Belize and Turks and Caicos [13][16] - The company achieved a one-year total shareholder return of nearly 24% and average annual total shareholder returns of approximately 10% over the past 20 years [6][16] Business Line Data and Key Metrics Changes - Western Canadian utilities contributed a 10-cent increase in EPS, driven by rate-based growth, particularly from FortisBC's investment in the Eagle Mountain Pipeline Project [14] - U.S. electric and gas utilities delivered an eight-cent increase in EPS, with Central Hudson benefiting from rate-based growth and cost rebasing [14] - ITC's capital investments and related rate-based growth increased EPS by CAD 0.04, moderated by higher stock-based compensation and finance costs [15] Market Data and Key Metrics Changes - In Arizona, the Arizona Corporation Commission approved an energy supply agreement for approximately 300 MW to support a planned data center, with a 10-year contract including a 75% minimum billing requirement [8][9] - The company is negotiating for an additional 300 MW capacity at the same site and a second site in the range of 500-700 MW, with potential new generation investments estimated at CAD 1.5 billion to CAD 2 billion through 2030 [9][10] Company Strategy and Development Direction - The company rolled out a CAD 28.8 billion five-year capital plan, focusing on regulated investments primarily in transmission and distribution assets, expecting a 7% average annual rate base growth [6][7][20] - The strategy includes maintaining a commitment to 4%-6% annual dividend growth through 2030, supported by strong capital investments and operational efficiency [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment and ongoing projects, particularly in Arizona and ITC, highlighting the importance of affordability and customer service [23][30][65] - The company is focused on executing its capital plan while addressing cost pressures and maintaining reliability and safety in operations [5][20] Other Important Information - The company has maintained a strong liquidity position with CAD 2.7 billion of long-term debt issued in 2025 and nearly CAD 4 billion available on credit facilities [16][17] - S&P confirmed the company's A- issuer rating and revised the outlook from negative to stable, reflecting improving financial measures [17] Q&A Session Summary Question: Data center opportunity in Arizona - Management explained that the energy supply agreement is structured to ensure affordability and cost recovery, with the customer covering interconnection costs [22][23] Question: Updates from FERC - Management noted optimism regarding potential movement on ongoing FERC matters, emphasizing the new chair's focus on regulatory clarity [28][30] Question: UNS Gas rate case - Management indicated that the upcoming ACC open meeting could provide clarity on the formulaic rate structure, but advised waiting for the meeting for specific insights [69][70] Question: LNG projects in British Columbia - Management confirmed that while there are no new announcements, they are looking for additional investment opportunities in LNG projects [43] Question: Customer affordability feedback - Management acknowledged that affordability is a significant concern across jurisdictions, with ongoing efforts to address it consistently [62][65]

Financial Data and Key Metrics Changes - Reported earnings per common share for Q4 2025 were CAD 0.83, an increase of CAD 0.04 compared to Q4 2024 [11] - Reported EPS for 2025 was CAD 3.40, up CAD 0.16 from 2024, while adjusted EPS was CAD 3.53, an increase of CAD 0.25 [13][16] - The company achieved a one-year total shareholder return of nearly 24% and average annual total shareholder returns of approximately 10% over the past 20 years [6] Business Line Data and Key Metrics Changes - Western Canadian utilities contributed a CAD 0.10 increase in EPS, driven by rate base growth, including FortisBC's investment in the Eagle Mountain Pipeline Project [13] - U.S. electric and gas utilities delivered an eight-cent increase in EPS, with Central Hudson's growth attributed to rate base growth and cost rebasing [14] - ITC's continued capital investments and related rate base growth increased EPS by CAD 0.04, moderated by higher stock-based compensation and finance costs [15] Market Data and Key Metrics Changes - In Arizona, the energy supply agreement for a planned data center was approved, supporting a 300 MW capacity with a 75% minimum billing requirement [8] - The company is negotiating for an additional 300 MW capacity at the same site and a second site in the range of 500-700 MW [9] - The BCUC's approval of the Tilbury LNG storage expansion project provides up to CAD 300 million of potential incremental capital [9] Company Strategy and Development Direction - The company rolled out a CAD 28.8 billion five-year capital plan, focusing on regulated investments primarily in transmission and distribution assets [6][7] - The plan is expected to drive a 7% average annual rate base growth and support a 4%-6% annual dividend growth guidance through 2030 [20] - The company is focused on incremental growth opportunities, including customer connections and MISO LRTP projects [7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment and the potential for improved earnings guidance as clarity increases [75] - The company is committed to addressing affordability concerns while ensuring reliable service and maintaining strong shareholder returns [6][65] - Management highlighted the importance of executing the capital plan to support long-term growth and shareholder value [20] Other Important Information - The company maintained a strong liquidity position with CAD 2.7 billion of long-term debt issued in 2025 and nearly CAD 4 billion available on credit facilities [16] - S&P confirmed the company's A- issuer and BBB+ senior unsecured debt ratings, revising the outlook from negative to stable [17] Q&A Session Summary Question: Data center opportunity in Arizona - Management explained that the energy supply agreement is structured to ensure affordability and cost recovery without requiring additional investments [22][23] Question: Updates from FERC - Management noted that while there has been chatter about FERC developments, no specific updates have been received [28][30] Question: UNS Gas rate case - Management indicated that the upcoming ACC open meeting could provide clarity on the formulaic rate structure [69][70] Question: Customer affordability feedback - Management acknowledged that affordability is a significant concern across jurisdictions and emphasized the company's commitment to addressing it [62][65]

Financial Data and Key Metrics Changes - In 2025, reported earnings per common share were CAD 3.40, an increase of CAD 0.16 compared to 2024, while adjusted EPS was CAD 3.53, up CAD 0.25 from the previous year [13][17] - The company achieved a one-year total shareholder return of nearly 24%, with average annual total shareholder returns of approximately 10% over the past 20 years [6][11] - The company maintained a strong liquidity position with CAD 2.7 billion of long-term debt issued in 2025 and nearly CAD 4 billion available on credit facilities at year-end [17][18] Business Line Data and Key Metrics Changes - Western Canadian utilities contributed a CAD 0.10 increase in EPS, driven by rate-based growth, including earnings from FortisBC's investment in the Eagle Mountain Pipeline Project [13][14] - U.S. electric and gas utilities delivered an eight-cent increase in EPS, with Central Hudson's growth attributed to rate-based growth and cost rebasing [14][15] - ITC's continued capital investments and related rate-based growth increased EPS by CAD 0.04, moderated by higher stock-based compensation and finance costs [16] Market Data and Key Metrics Changes - The Arizona Corporation Commission approved an energy supply agreement for approximately 300 MW to support a planned data center, with a 10-year contract including a 75% minimum billing requirement [9][24] - The company is negotiating for an additional 300 MW of capacity for the data center and exploring further capacity at a second site in the range of 500-700 MW [10][24] - The company is also focused on energy efficiency programs to help customers lower their bills and provide assistance to low-income customers [6][11] Company Strategy and Development Direction - The company rolled out a CAD 28.8 billion five-year capital plan, primarily focused on transmission and distribution assets, expecting a rate base increase of CAD 16 billion and average annual rate base growth of 7% [7][8] - The company aims to support 4%-6% annual dividend growth through 2030, continuing its commitment to increasing dividends for 52 consecutive years [11][21] - The company is actively pursuing incremental growth opportunities, including customer connections and MISO LRTP projects, while evaluating competitive bidding opportunities [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the regulatory environment, noting that the new chair of FERC is focused on improving the commission's operations and providing regulatory certainty [30][31] - The company is committed to addressing affordability concerns and ensuring that growth is achieved in a responsible manner for customers [25][62] - Management highlighted the importance of maintaining a strong focus on safety and reliability, with 2025 being one of the best years on record for these metrics [5][21] Other Important Information - The company was recognized for its governance practices, ranking number one in governance out of 206 companies in the S&P/TSX Composite Index [4] - The company has not utilized its CAD 500 million ATM program to date, which remains available for funding flexibility [17][18] Q&A Session Summary Question: Data center opportunity in Arizona - Management explained that the energy supply agreement is structured to ensure affordability and stability for customers, with the data center covering costs without requiring additional investments [24][25] Question: Updates from FERC - Management noted that while there has been chatter about potential updates, no specific information has been received, but there is optimism for movement on ongoing matters [29][30] Question: UNS Gas rate case - Management indicated that the upcoming ACC open meeting could provide clarity on the formulaic rate structure, but it is advisable to wait for the meeting for more information [69][70]