Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks with the potential to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] - The Growth Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score capitalizes on price trends and earnings outlook changes, using metrics like one-week price change and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [8] - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for optimal investment potential [9] Company Spotlight: PPL Corp. - PPL Corp. is a diversified utility holding company serving over 3.6 million customers in the U.S., primarily generating electricity and supplying natural gas [11] - PPL holds a 2 (Buy) rating on the Zacks Rank, with a VGM Score of B and a Momentum Style Score of A, having seen a 4.7% increase in shares over the past four weeks [12] - Recent upward revisions in earnings estimates for fiscal 2025 have led to a consensus estimate increase to $1.82 per share, with an average earnings surprise of +8.8% [12][13]

Core Insights - PPL Corporation has formed a joint venture with Blackstone Infrastructure to build and operate gas-fired, combined-cycle generation stations aimed at powering data centers under long-term energy services agreements [1][11] Group 1: Joint Venture Details - The joint venture targets high data center interest areas and aims to create power generation facilities near the Marcellus and Utica shale basins, ensuring quick access to gas pipeline capacity [4] - PPL holds a 51% interest in the joint venture, while Blackstone Infrastructure owns 49%, with expenses and distributions shared ratably [6] Group 2: Market Context and Demand - There is a strong push in the U.S. for domestic manufacturing and reshoring of tech infrastructure, including semiconductor and AI data facilities, driven by inflationary pressures and aging infrastructure [2] - The U.S. data center market is projected to grow significantly, with an expected size of $308.83 billion by 2030, largely due to increasing AI workloads [9] Group 3: Infrastructure Investment - The U.S. is experiencing a historic investment cycle in infrastructure, supported by federal programs like the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, which promote public-private partnerships focused on clean energy and grid modernization [3] Group 4: Data Center Demand in PPL's Service Area - In Pennsylvania, there is over 60 gigawatts (GW) of potential data center projects within PPL Electric Utilities' service zone, with 13 GW in advanced development stages [7] - PPL anticipates a 6 GW generation gap in its service area if all 13 GW come online, necessitating approximately $15 billion in investment for natural gas combined-cycle units [8] Group 5: Competitive Landscape - Other utilities, such as Dominion Energy and Southern Company, are also expanding their capacities to meet data center demand, with Dominion having nearly 40 GW of data center capacity in development [10][12] - NRG Energy has entered into agreements targeting 400 MW of retail supply, with potential scaling to 6.5 GW, indicating a competitive environment for data center energy supply [13] Group 6: Stock Performance - PPL's stock has risen 5.7% in the past month, outperforming the industry, which saw a 1.2% decline [15]

Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or a ...

Core Viewpoint - PPL Corporation and Blackstone Infrastructure have formed a joint venture to develop gas-fired, combined-cycle generation stations to meet the power needs of data centers in Pennsylvania through long-term energy supply agreements [1][2][4]. Group 1: Joint Venture Details - The joint venture aims to build new dispatchable generation to support the growing demand from data centers, leveraging the expertise of both companies [2][4]. - PPL holds a 51% interest in the joint venture, while Blackstone Infrastructure owns 49%, with expenses and distributions shared ratably [5]. - The joint venture plans to engage with landowners, natural gas pipeline companies, and turbine manufacturers to facilitate the construction of new generation plants [4][9]. Group 2: Market Demand and Capacity Concerns - PJM Interconnection has forecasted potential capacity shortages as early as the 2026-27 delivery year due to increasing demand from data centers and the retirement of aging generation resources [7]. - Within PPL Electric Utilities' service territory, there is over 60 gigawatts (GW) of potential data center projects, with 13 GW in advanced planning stages, indicating a projected 6 GW generation shortfall in the next five to six years [8]. - PPL estimates that meeting this shortfall will require approximately $15 billion in investments, assuming the use of natural gas combined-cycle units [8]. Group 3: Economic and Legislative Context - Pennsylvania Governor Josh Shapiro emphasized the importance of diversifying energy sources and welcomed the investment from Blackstone Infrastructure to support long-term clean energy solutions [6]. - The joint venture's success is contingent upon executing long-term energy services agreements with hyperscalers, which have not yet been signed [4][9]. - Current legislation in Pennsylvania aims to allow utilities to invest in and operate generation, which is crucial for addressing resource adequacy concerns [9].

Group 1: Company Strategy and Investments - PPL Corporation is heavily investing in grid modernization and transmission infrastructure to enhance energy delivery and meet rising demand, particularly from data centers [1][8] - The company is focusing on strategic investments in Pennsylvania and Kentucky to leverage the expected growth in the data center market, with nearly 11 gigawatts of potential demand in Pennsylvania, leading to a projected capital investment of $700-$850 million [2][8] - PPL plans a regulated capital investment of $20 billion from 2025 to 2028, with specific investments of $4.3 billion in 2025 and $5.2 billion in 2026, targeting an average annual rate base growth of 9.8% during this period [4][8] Group 2: Financial Performance and Earnings Estimates - PPL's capital investments are expected to significantly boost earnings per share (EPS) growth, with Zacks Consensus Estimates indicating increases of 7.69% for 2025 and 7.97% for 2026 [3][7] - The current Zacks Consensus Estimate for EPS in 2025 is $1.82, with a projected increase to $1.97 in 2026, reflecting a year-over-year growth estimate of 7.69% and 7.97% respectively [9] Group 3: Market Position and Stock Performance - PPL is trading at a premium compared to the industry, with a forward 12-month price-to-earnings ratio of 18.32X, while the industry average is 14.63X [10] - Over the past year, PPL's stock has increased by 24.3%, outperforming the industry growth of 16.4% [12]

Group 1 - PPL Corporation will release its consolidated second-quarter 2025 earnings results on July 31, 2025 [1] - The conference call to discuss the quarterly results and business outlook will begin at 11 a.m. Eastern Time [1] - The call will be accessible via a live webcast and telephone for interested participants [2] Group 2 - PPL Corporation is a leading U.S. energy company providing electricity and natural gas to over 3.6 million customers [4] - The company focuses on building smarter, more resilient power grids and advancing sustainable energy solutions [4] - Additional information about PPL can be found on their official website [4]

Core Insights - PPL Corporation is implementing cost reduction strategies to enhance its financial position and support future growth in clean energy technologies [1][2] Cost Reduction and Financial Performance - PPL's cost-reduction efforts are crucial for improving profit margins while maintaining reliability and safety in electricity delivery, which helps sustain customer satisfaction [2] - The company achieved approximately $130 million in operation and maintenance (O&M) savings in 2024 compared to a 2021 baseline, with targets of at least $150 million in 2025 and $175 million by 2026 [3][8] - In Q1 2025, PPL reduced other O&M expenses by nearly 4.5% year-over-year, primarily through smart grid technology and data science [3][8] Customer Impact - By lowering operational expenses, PPL can offer more competitive pricing, enhancing customer satisfaction and loyalty [4] Earnings Estimates - The Zacks Consensus Estimate indicates a 7.69% increase in earnings per share for 2025 and a 7.97% increase for 2026 [7][9] Stock Performance - PPL is trading at a premium with a forward 12-month price-to-earnings ratio of 17.78X, compared to the industry average of 14.68X [10] - Over the past six months, PPL's shares have increased by 4.7%, while the industry has seen an 8.9% growth [12]

Core Viewpoint - PPL Corporation (PPL) is experiencing growth driven by increased demand from data centers, particularly in Pennsylvania and Kentucky, despite its stock underperforming compared to the broader utility industry [1][2][23]. Group 1: Performance and Demand - PPL shares have gained 4.2% year-to-date, while the Zacks Utility-Electric Power industry has rallied 8.9% [1]. - The company is benefiting from nearly 11 gigawatts (GW) of potential data center demand, with an estimated transmission capital investment of $700 million to $850 million [6]. - Active data center requests in Pennsylvania have surged to 50 GW for the 2026-2034 period, while Kentucky has announced a 400 megawatt (MW) hyperscale data center campus [6]. Group 2: Strategic Initiatives - PPL is focusing on infrastructure construction projects for generation, transmission, and distribution, resulting in fewer outages for customers [4]. - The company is implementing its "Utility of the Future" strategy, which includes an IT transformation to standardize operations and enhance grid resilience against weather risks [5]. - PPL plans to invest $20 billion from 2025 through 2028 to meet rising demand and improve service quality [7][9]. Group 3: Financial Outlook - The Zacks Consensus Estimate indicates PPL's earnings per share (EPS) will increase by 7.69% in 2025 and 7.97% in 2026 [11]. - PPL has a history of beating earnings estimates, with an average surprise of 8.84% over the last four quarters [13]. - The company aims to reduce operating and maintenance costs by at least $150 million by 2025 and $175 million by 2026 to enhance margins [10]. Group 4: Dividend and Valuation - PPL plans to increase its annual dividend by 6-8% through at least 2028, with a current quarterly dividend of 27.25 cents per share [16]. - The targeted dividend payout ratio is expected to be in the range of 60-65% [17]. - PPL's trailing 12-month return on equity (ROE) is 9.14%, lower than the industry average of 10.31% [19].

Company Performance - PPL closed at $33.54, reflecting a -1.32% change from the previous day, underperforming the S&P 500's gain of 0.48% [1] - Over the past month, PPL shares have decreased by 1.48%, while the Utilities sector gained 1.16% and the S&P 500 increased by 5.13% [1] Upcoming Financial Results - The upcoming EPS for PPL is projected at $0.39, indicating a 2.63% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $1.98 billion, representing a 5.52% increase from the previous year [2] Full Year Estimates - Analysts expect earnings of $1.82 per share and revenue of $8.91 billion for the full year, marking increases of +7.69% and +5.27% respectively from last year [3] - Recent changes in analyst estimates for PPL can indicate evolving business trends, with positive revisions seen as favorable for the business outlook [3] Valuation Metrics - PPL has a Forward P/E ratio of 18.68, which is a premium compared to the industry average Forward P/E of 18.19 [6] - The company has a PEG ratio of 2.5, while the Utility - Electric Power industry average PEG ratio is 2.57 [7] Industry Ranking - The Utility - Electric Power industry has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [7] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - PPL Corporation is experiencing significant growth due to increased demand from data centers, particularly in Pennsylvania and Kentucky, driven by the rise in artificial intelligence workloads [1][4] - The U.S. data center market is projected to reach $308.83 billion by 2030, indicating a robust expansion opportunity for utilities like PPL [1] Group 1: Data Center Demand and Growth - PPL is witnessing load growth with nearly 11 gigawatts (GW) of potential data center demand in advanced stages, requiring a capital investment of $700-$850 million [2] - Active data center requests in Pennsylvania have surged to 50 GW for the period of 2026-2034, reflecting a strong demand trajectory [2][8] - In Kentucky, the first 400 megawatt (MW) hyperscale data center campus has been announced, with active requests nearing 6 GW for the same period [3] Group 2: Capital Investments and Infrastructure - PPL plans to invest $20 billion in capital expenditures from 2025 to 2028 to modernize its grid infrastructure and connect data centers [3][8] - The expected capital investment for 2025 and 2026 is projected to be $4.3 billion and $5.2 billion, respectively [3] Group 3: Strategic Positioning and Revenue Growth - PPL is strategically positioning itself to capitalize on the anticipated data center boom by investing in grid modernization and enhancing transmission and distribution infrastructure [4] - The company aims to secure new revenue streams and strengthen long-term growth prospects through partnerships and service agreements with data center operators [4] Group 4: Stock Performance and Earnings Estimates - PPL's stock has increased by 23.4% over the past year, outperforming the industry average growth of 18.2% [7] - The Zacks Consensus Estimate indicates an earnings per share growth of 7.69% for 2025 and 7.97% for 2026 [10]