As of Jan. 27, 2026, two stocks in the utilities sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Ben ...

Core Insights - Two stocks in the utilities sector are showing signs of being overbought, which may concern momentum-focused investors [1] Group 1: Enlight Renewable Energy Ltd (NASDAQ:ENLT) - JP Morgan analyst Mark Strouse downgraded Enlight Renewable Energy from Neutral to Underweight, maintaining a price target of $35 [5] - The stock has increased approximately 11% over the past five days, reaching a 52-week high of $44.01 [5] - The RSI value for ENLT is 72, indicating it is considered overbought [2][5] - On the latest trading day, shares of Enlight Renewable Energy rose by 3.9% to close at $43.44 [5] - The stock has a momentum score of 96.81 and a value score of 15.56 [5] Group 2: Kenon Holdings Ltd (NYSE:KEN) - Kenon reported quarterly earnings of 45 cents per share, a decrease from 81 cents per share in the same period last year [5] - The stock has gained around 13% over the past month, with a 52-week high of $64.85 [5] - The RSI value for KEN is 75.4, also indicating it is considered overbought [2][5] - On the latest trading day, shares of Kenon gained 0.7% to close at $64.73 [5]

Core Insights - The article discusses the supply-and-demand imbalance in the US and Israeli electricity markets, which may lead to increased electricity prices, particularly in Israel due to strict regulations [1] Group 1: Market Analysis - The electricity markets in both the US and Israel are experiencing a supply-and-demand imbalance [1] - This imbalance is expected to result in higher electricity prices, especially in Israel [1] Group 2: Investment Strategy - The investment strategy combines a top-down view of the global economy with a bottom-up analysis of individual companies [1] - The approach begins with identifying strong economies and favorable currencies using macro data and statistical tools [1] - The focus then shifts to sectors likely to perform well in the near term, followed by identifying quality companies with solid momentum and consistent results [1]

Core Insights - Kenon Holdings Ltd. reported significant financial results for Q3 2025, highlighting a net profit of $69 million, up from $23 million in Q3 2024, driven by increased revenue and improved operational performance [1][2] Financial Performance - OPC's revenue for Q3 2025 was $265 million, an increase of $28 million compared to $237 million in Q3 2024, with notable growth in both Israel and the U.S. markets [1][2] - The cost of sales for OPC increased to $178 million in Q3 2025 from $157 million in Q3 2024, reflecting higher expenses in infrastructure services and retail electricity sales [2] - Adjusted EBITDA for OPC, including the proportionate share in associated companies, rose to $156 million in Q3 2025 from $108 million in Q3 2024, indicating improved profitability [1][2] Revenue Breakdown - In Israel, revenue from private customers for infrastructure services increased by $17 million, primarily due to a 40% rise in average tariffs [1] - U.S. revenue from retail electricity sales grew by $29 million, attributed to an expanded scope of activities [2] - Revenue from electricity sales to private customers in Israel decreased by $18 million, largely due to reduced customer consumption linked to geopolitical tensions [1][2] Cost Analysis - OPC's expenses related to infrastructure services in Israel rose by $17 million, while energy acquisition costs decreased by $30 million due to lower consumption and temporary shutdowns [2] - In the U.S., expenses for retail electricity sales increased by $28 million, reflecting the growth in retail activities [2] Strategic Developments - Kenon sold a portion of its OPC shares for gross proceeds of approximately $100 million, reducing its stake to about 47% [1][2] - OPC announced the financial closing and commencement of construction for the Basin Ranch Project, a gas-fired power plant in Texas with a capacity of 1.35 GW [1][2] - OPC issued NIS 460 million (approximately $140 million) in Series D bonds in November 2025 to support its financial activities [2] Liquidity Position - As of September 30, 2025, OPC had unrestricted cash and cash equivalents of $696 million and total outstanding consolidated indebtedness of $1,364 million [2]

Financial Performance - Revenues from sales and provision of services for the nine-month period ended September 30, 2025, were NIS 2,256 million, a 3% increase from NIS 2,190 million in the same period of 2024[14] - Gross income for the nine-month period was NIS 433 million, compared to NIS 452 million in the previous year, reflecting a decrease of 4%[14] - Operating profit increased to NIS 570 million for the nine-month period, up 53% from NIS 372 million in the same period of 2024[14] - Profit for the period attributable to the Company's shareholders was NIS 254 million, significantly higher than NIS 83 million in the same period of 2024, marking a 206% increase[14] - Profit for the nine-month period ended September 30, 2025, increased to NIS 333 million, compared to NIS 74 million for the same period in 2024, representing a growth of 350%[15] - The profit for the three-month period ended September 30, 2025, was NIS 236 million, compared to NIS 86 million for the same period in 2024, reflecting a growth of 174%[15] - The total comprehensive income for the three-month period ended September 30, 2025, was NIS 134 million, compared to NIS 36 million in the same period of 2024[15] Assets and Equity - Total assets as of September 30, 2025, were NIS 13,635 million, a slight increase from NIS 13,455 million as of September 30, 2024[10] - Total equity attributable to the Company's shareholders rose to NIS 6,274 million, up from NIS 4,763 million in the previous year, representing a 32% increase[11] - The balance of total equity as of September 30, 2025, was NIS 7,872 million, an increase from NIS 6,187 million as of September 30, 2024[17] Liabilities - Current liabilities increased to NIS 1,000 million from NIS 879 million in the previous year, reflecting a 14% rise[11] - Long-term loans from banking corporations and financial institutions decreased to NIS 2,569 million from NIS 2,953 million, a reduction of 13%[11] Earnings Per Share - Basic diluted earnings per share for the nine-month period were NIS 0.95, compared to NIS 0.36 in the same period of 2024, indicating a significant increase[14] Cash Flow - Net cash provided by operating activities for the nine-month period ended September 30, 2025, was NIS 745 million, compared to NIS 338 million in the same period of 2024, indicating a 120% increase[27] - Net cash used for investing activities for the nine-month period ended September 30, 2025, was NIS 668 million, a decrease from NIS 1,097 million in the same period of 2024[27] - Net cash provided by financing activities for the nine-month period ended September 30, 2025, was NIS 1,450 million, compared to NIS 467 million in the same period of 2024, marking a 210% increase[27] - The balance of cash and cash equivalents as of the end of the period was NIS 2,300 million, up from NIS 1,151 million at the end of the same period in 2024[27] Investments and Acquisitions - The company completed the acquisition of an additional 20% stake in the Shore Power Plant, increasing its holding to approximately 89%[50] - Construction of the Basin Ranch Power Plant, a 1.35 GW project in Texas, commenced with the company holding a 70% stake, and total equity financing provided was approximately NIS 1.5 billion (approximately USD 470 million)[55] - The company provided approximately NIS 1 billion (approximately USD 300 million) as a loan for the Basin Ranch project, demonstrating its commitment to expanding its renewable energy portfolio[55] Financial Agreements and Covenants - A senior loan agreement with Texas Energy Fund (TEF) was entered into for approximately USD 1.1 billion (approximately NIS 3.6 billion) to finance the project's construction[63] - The interest rate for the TEF Loan is fixed at 3% annually, with a final repayment date set for September 30, 2045[63] - The financial covenants for the CPV Group include maintaining total equity of more than USD 750 million and an adjusted net debt to adjusted EBITDA ratio of less than 7.0[77] Shareholder Information - The Parent Company's stake in the Company decreased from approximately 54.53% to 53.20% after the June issuance and from 53.16% to 49.79% after the August private placement[95] Profit Sharing and Employee Compensation - The fair value of the profit-sharing compensation plan for CPV Group employees was estimated at approximately NIS 224 million (approximately USD 68 million) as of the report date[102] - The Company recognized a liability of approximately NIS 208 million (approximately USD 63 million) related to the profit-sharing plan, included in Other payables and credit balances[103] Revenue from Associates - The Company reported a share in profits of associates amounting to NIS 423 million for the nine-month period, compared to NIS 150 million in the previous year, a 182% increase[14] - CPV Group received dividends and capital distributions from associates totaling approximately NIS 206 million during the reporting period, with NIS 83 million from Maryland, NIS 62 million from Fairview, and NIS 54 million from Towantic[121]

Core Insights - Kenon Holdings Ltd. reported its Q2 2025 results, highlighting significant financial developments and operational updates [1] Financial Performance - OPC Energy Ltd. (OPC), a subsidiary of Kenon, generated revenue of $196 million in Q2 2025, an increase from $181 million in Q2 2024, reflecting a growth of approximately 8.3% [6][10] - The cost of sales for OPC increased to $150 million in Q2 2025 from $129 million in Q2 2024, marking a rise of about 16.3% [13] - OPC's Adjusted EBITDA, including the proportionate share in associated companies, rose to $90 million in Q2 2025, compared to $66 million in Q2 2024, indicating a growth of approximately 36.4% [8][6] Revenue Breakdown - Revenue from private customers in Israel increased by $9 million in Q2 2025, primarily due to higher average tariffs [12] - Revenue from the sale of energy at cogeneration tariff in Israel rose by $7 million, attributed to maintenance work at the Hadera power plant in Q2 2024 [12] - In the U.S., revenue from retail electricity activities increased by $25 million, driven by an expanded scope of services [12] Share Offerings and Capital Raising - OPC raised gross proceeds of NIS 1,750 million (approximately $506 million) through share offerings in June and August 2025 [8] - Kenon participated in the June offering, investing approximately NIS 316 million (about $90 million) [21] - The August private placement generated gross proceeds of NIS 900 million (approximately $266 million) [22] Project Developments - The Israeli Government approved the construction of the Hadera 2 project, expected to have a capacity of 850 MW, with estimated construction costs between NIS 4.5 billion and NIS 5 billion (approximately $1.3 billion to $1.5 billion) [24] - OPC is preparing for the construction of Hadera 2 following government approval [24] Debt and Liquidity - As of June 30, 2025, OPC had unrestricted cash and cash equivalents of $470 million and total outstanding consolidated indebtedness of $1,403 million [18] - Kenon's stand-alone cash was approximately $560 million as of June 30, 2025, with no material debt at the Kenon level [26] Share Repurchase Plan - Since March 2023, Kenon has repurchased approximately 1.8 million shares for a total consideration of about $48 million [27] - The board has increased the authorized share repurchase plan by $10 million to a total of up to $70 million [28]

Financial Performance - Revenues for the six-month period ended June 30, 2025, were NIS 1,361 million, representing a 3.8% increase compared to NIS 1,311 million for the same period in 2024[13]. - Gross income for the six-month period was NIS 200 million, down 18.4% from NIS 245 million in the previous year[13]. - Operating profit increased to NIS 242 million for the six-month period, compared to NIS 164 million in the same period of 2024, marking a 47.6% increase[13]. - Profit for the period attributable to the Company's shareholders was NIS 71 million, a significant increase from NIS 2 million in the prior year[13]. - The Company reported a comprehensive loss of NIS 406 million for the six-month period, compared to a comprehensive income of NIS 101 million in the same period of 2024[14]. - For the six-month period ended June 30, 2025, the profit for the period was NIS 97 million, compared to a loss of NIS 12 million in the same period of 2024[16]. - The company reported a profit before taxes on income of NIS 123 million for the six-month period ended June 30, 2025, compared to a profit of NIS 15 million in the same period of 2024[40]. - Profit for the three-month period ended June 30, 2025, was $4,389 thousand under US GAAP, compared to $24,200 thousand for the same period in 2024, reflecting a significant decrease[112]. Assets and Equity - As of June 30, 2025, total assets of OPC Energy Ltd. amounted to NIS 12,718 million, a slight decrease from NIS 12,935 million in June 30, 2024[10]. - Total equity attributable to the Company's shareholders rose to NIS 5,275 million, up from NIS 3,947 million in June 30, 2024, reflecting a 33.7% increase[11]. - The total equity as of June 30, 2025, increased to NIS 6,869 million from NIS 5,381 million as of June 30, 2024, reflecting a growth of approximately 27.6%[18]. - The Company's shareholders' equity stood at approximately NIS 5,275 million, exceeding the minimum requirement of NIS 250 million for distribution purposes[54]. - OPC Israel's equity capital was approximately NIS 2,194 million, significantly above the minimum threshold of NIS 1,100 million[58]. - The Company's equity to asset ratio was reported at 74%, well above the required minimum of 30%[58]. Cash Flow and Financing - Cash and cash equivalents increased to NIS 1,586 million as of June 30, 2025, compared to NIS 722 million in June 30, 2024, indicating a 120% increase[10]. - Cash flows from operating activities for the six-month period ended June 30, 2025, amounted to NIS 318 million, slightly down from NIS 327 million in the same period of 2024[22]. - The net cash provided by financing activities for the six-month period ended June 30, 2025, was NIS 935 million, a significant increase from NIS 78 million in the same period of 2024[24]. - The company experienced a net cash used for financing activities of $43,154 thousand for the six-month period ended June 30, 2025[111]. - The net cash used for financing activities for the year was $179,901 thousand, indicating significant capital outflows[113]. Investments and Acquisitions - The company completed the acquisition of an additional 20% stake in the Shore Power Plant, increasing its holding to approximately 89%[85]. - The company invested approximately USD 50 million in the US Renewable Energy Segment in April 2025[89]. - The company purchased property, plant, and equipment for approximately NIS 104 million in the six months ended June 30, 2025, compared to NIS 512 million in the same period of 2024[86]. Liabilities and Debt - Current liabilities decreased to NIS 908 million from NIS 1,141 million in the previous year, a reduction of 20.4%[11]. - The total liabilities as of June 30, 2025, were $332,537 thousand, a decrease from $381,210 thousand as of June 30, 2024, indicating improved leverage[114]. - The total liabilities under the New Refinancing Agreement for Shore are approximately NIS 1.57 billion (approximately USD 436 million)[94]. Operational Metrics - EBITDA after proportionate consolidation for the six-month period ended June 30, 2025, was NIS 257 million, compared to NIS 332 million in the same period of 2024, indicating a decrease of about 22.6%[39]. - The operating expenses for the six-month period ended June 30, 2025, were $139,445 thousand, compared to $126,626 thousand for the same period in 2024, representing an increase of approximately 10.1%[107]. - The company reported depreciation and amortization expenses of NIS 129 million for the three-month period ended June 30, 2025, compared to NIS 162 million in the same period of 2024[22]. Dividends and Distributions - The company received dividends and capital distributions from associates totaling approximately NIS 98 million during the reporting period[88]. Credit and Ratings - The company’s credit rating was upgraded to ilA with a stable outlook by Ma'alot S&P in May 2025, following improvements in business profile and financial ratios[50]. Miscellaneous - The company is exploring the possibility of reversing an impairment provision of approximately NIS 35 million related to the Hadera 2 Project following government approval[84]. - The adjustments between US GAAP and IFRS include differences in the treatment of maintenance costs, hedge effectiveness, and the classification of intangible assets[123].

Group 1 - Kenon Holdings Ltd. (NYSE: KEN) has experienced a 60% increase in stock price over the last three months, significantly outperforming the S&P 500, which rose by 20% [1] - The stock rally is attributed to rising electricity demand, tight supply conditions, and a unique combination of Israeli and U.S. energy assets [1] - The investment strategy involves a macroeconomic approach, focusing on strong economies and sectors likely to perform well, followed by an analysis of quality companies with solid momentum [1]

Core Points - Kirk Tanner, President and CEO of Wendy's, is leaving to become the President and CEO of The Hershey Company, effective July 18, 2025 [1] - Ken Cook, the current CFO, has been appointed as Interim CEO while the Board searches for a permanent replacement [2] - The Board expresses confidence in Ken Cook and the senior leadership team to continue executing the company's growth strategy [3] Leadership Changes - Kirk Tanner's departure is acknowledged by the Board, which wishes him well in his new role at Hershey [3] - Ken Cook has a strong background, having spent 20 years at UPS, and has played a significant role in developing Wendy's long-term growth strategy [2] - Bradley G. Peltz has been elected to the Board, replacing Matthew H. Peltz, who resigned to focus on other commitments [3] Strategic Focus - Ken Cook emphasizes the commitment to executing strategic priorities such as providing fresh food, enhancing customer experience, and accelerating global net unit growth [3] - The company is set to release its second quarter 2025 results on August 8, 2025, indicating ongoing transparency and communication with stakeholders [3]

Core Insights - Kenon Holdings Ltd. reported a significant increase in net profit for Q1 2025, reaching $26 million compared to $4 million in Q1 2024, driven by higher share profits from associated companies [7][15] - The company distributed a cash dividend of approximately $250 million, equating to $4.80 per share, in April 2025 [2][27] - OPC Energy Ltd., a key component of Kenon's consolidated results, showed a revenue increase of $9 million in Q1 2025, totaling $183 million compared to $174 million in Q1 2024 [6][8] Financial Performance - OPC's revenue for Q1 2025 was $183 million, with a cost of sales of $139 million, leading to a profit for the period of $26 million [6][11] - Adjusted EBITDA for OPC, including the proportionate share in associated companies, rose to $110 million in Q1 2025 from $95 million in Q1 2024 [6][7] - The weighted-average generation component tariff in Q1 2025 was NIS 0.2939 per KW hour, approximately 3% lower than the previous year's tariff [9] Revenue Breakdown - Revenue from electricity sales to private customers in the U.S. increased by $23 million, while revenue from sales in Israel decreased by $4 million due to lower tariffs [12] - Revenue from renewable energy sales in the U.S. decreased by $15 million, primarily due to the deconsolidation of CPV Renewable Power LLC [12][13] Cost and Expenses - OPC's cost of sales increased by $22 million to $139 million in Q1 2025, with significant increases in expenses for natural gas and diesel oil [11][13] - Finance expenses decreased to $13 million in Q1 2025 from $17 million in Q1 2024, attributed to the deconsolidation of CPV Renewable [14] Liquidity and Capital Resources - As of March 31, 2025, OPC had unrestricted cash and cash equivalents of $225 million and total outstanding consolidated indebtedness of $1,247 million [17][18] - Kenon's stand-alone cash was approximately $640 million as of May 28, 2025, with no material debt at the Kenon level [26] Business Developments - In April 2025, CPV completed the acquisition of an additional 20% interest in CPV Shore LLC, increasing its ownership to approximately 90% [19] - The Basin Ranch natural gas project in Texas is in advanced loan negotiations for a $1 billion subsidized loan, with construction expected to begin by the end of 2025 [20][21]