I have been recently spending considerable time digging into utilities. To be honest, it is not the most interesting part of the market, but that is where the silent opportunities are likely to be found.I’m an ACC-qualified finance professional with a Master’s in Audit & Accounting from Istanbul University and certificates in Data Analytics from Coursera. For over two years, I’ve worked as a Data Scientist and Financial Analyst at a leading property management firm in Istanbul, where I developed budgets, se ...

PPL Corporation (NYSE:PPL) is among the 15 Best Electric Utility Stocks to Invest In Now. Morgan Stanley Keeps an Overweight Rating on PPL Corporation (PPL) PPL Corporation (NYSE:PPL) is among the Best Utility Stocks. On February 20, 2026, Morgan Stanley analyst David Arcaro boosted PPL Corporation (NYSE:PPL)'s price objective to $42 from $40, maintaining an Overweight rating. The firm increased its price predictions for North American Regulated and Diversified Utilities and IPPs. Morgan Stanley noted t ...

Citi Research Global Technology, Communications, Real Estate, Energy, and Industrials February 23, 2026 Data Center GAINs (Gen AI Names) Multi-Asset Strong Absorption Supports Solid 2026 and LT Data Center Demand | Equities | | | | | ABS | | --- | --- | --- | --- | --- | --- | | Michael Rollins, CFAAC +1 212 816-3116 | Heath TerryAC +1 212 723-4624 | Caitlyn Walsh caitlyn.walsh@citi.com | | | | | michael.rollins@citi.com | heath.terry@citi.com | | | | | | Siraj Ahmed AC | AC Scott Gruber | Andrew KaplowitzA ...

This story was originally published on Utility Dive. To receive daily news and insights, subscribe to our free daily Utility Dive newsletter. PPL Corp.’s electric utilities continue to sign agreements with potential data centers and other large load customers in Pennsylvania and Kentucky, company officials said during an earnings conference call on Friday. At the same time, a PPL-Blackstone Infrastructure joint venture is in talks with hyperscalers to supply their data centers with generation, including o ...

Core Insights - Exelon reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, but down from $0.64 per share a year ago, representing an earnings surprise of +11.74% [1] - The company posted revenues of $5.41 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 2.27% and down from $5.47 billion year-over-year [2] - Exelon has surpassed consensus EPS estimates four times over the last four quarters and topped revenue estimates twice during the same period [2] Earnings Outlook - The sustainability of Exelon's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $0.90 on revenues of $6.85 billion, and for the current fiscal year, it is $2.83 on revenues of $25.2 billion [7] Industry Context - The Utility - Electric Power industry, to which Exelon belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Exelon's performance [5]

Core Viewpoint - Ameren Corporation has elected Timothy S. Rausch to its board of directors, effective March 1, 2026, highlighting the company's commitment to enhancing its leadership in nuclear generation [1][3]. Group 1: Leadership Appointment - Timothy S. Rausch has extensive experience in nuclear generation, having served as executive vice president and chief nuclear officer at Tennessee Valley Authority from October 2018 to July 2025 [2]. - Rausch's previous roles include senior vice president and chief nuclear officer at Talen Energy Corporation and PPL Corporation, as well as various leadership positions at Exelon Nuclear Corporation and FirstEnergy Corporation [2]. Group 2: Strategic Importance of Nuclear Generation - Martin J. Lyons, chairman and CEO of Ameren, emphasized that Rausch's leadership in nuclear generation will add significant value to the board, as nuclear energy is crucial for Ameren's strategy to provide reliable and affordable energy [3]. - The company aims to ensure a diverse generation resource strategy, with nuclear generation being a key component [3]. Group 3: Company Overview - Ameren Corporation serves 2.5 million electric customers and over 900,000 natural gas customers across a 64,000-square-mile area through its subsidiaries, Ameren Missouri and Ameren Illinois [4]. - Ameren Illinois focuses on electric transmission and distribution, while Ameren Missouri provides electric generation, transmission, and distribution services, along with natural gas distribution [4].

Core Insights - The AES Corporation (AES) has seen a 9.2% increase in share price over the past month, outperforming the Zacks Utility-Electric Power industry, which grew by 2.8% [1] - The company is strategically investing in clean energy solutions, including energy storage and utility-scale renewables, to capitalize on the global transition to renewable energy [1][5] - AES is benefiting from the rising demand from data centers, driven by advancements in AI and cloud computing, which is also positively impacting other utilities like Ameren Corporation and PPL Corporation [3] Performance Drivers - AES is leveraging the global shift toward renewables through investments in energy storage and utility-scale clean energy, supported by AI-driven innovation and global diversification [5] - The company has secured long-term contracts (Power Purchase Agreements or PPAs) by supplying power from its renewable energy projects, positioning itself as a key partner in the tech industry's expansion [5] - As of September 30, 2025, AES has signed or been awarded 2.2 GW of capacity, with 1.6 GW linked to data center demand, and has completed construction on 2.9 GW of new projects [6] Market Expansion - AES is expanding its presence in the liquefied natural gas (LNG) market through strategic projects, including the Dominican Republic's only LNG import terminal and major projects in Vietnam [8] - The company is also converting coal units to natural gas to support its target of net-zero greenhouse gas emissions by 2050 [6][7] Earnings Estimates - The Zacks Consensus Estimate for AES' 2026 earnings per share (EPS) indicates a year-over-year increase of 10.14%, with a long-term earnings growth rate of 11.17% [9] - The current quarter EPS estimate is 0.63, with a high estimate of 0.65 and a low estimate of 0.61 [10] Dividend and Financial Position - AES has a current dividend yield of 4.37%, significantly higher than the Zacks S&P 500 composite's 1.06% [13] - The company's total debt to capital ratio is 78.58%, which is above the industry average of 61.05% [14] - AES has a current ratio of 0.72, indicating potential challenges in meeting short-term obligations [15] Valuation - AES is currently trading at a forward P/E ratio of 6.17X, which is a discount compared to the industry's 15.92X [16] Investment Considerations - AES is focused on long-term growth through renewable energy expansion, energy storage, and AI-enabled solutions, while also building a strong project backlog and advancing net-zero goals [17] - The company's higher debt ratio and lower current ratio may be concerning for potential investors [18]

Core Insights - PPL Corporation is a regulated utility company based in Pennsylvania, with a market capitalization of $26.8 billion, primarily generating revenue from electricity transmission and distribution [1] Performance Overview - PPL shares have underperformed the broader market over the past year, gaining 5% compared to the S&P 500 Index's 15.4% increase [2] - In 2026, PPL's stock has risen 1.4%, slightly outperforming the S&P 500's 1.1% rise on a year-to-date basis [2] - PPL has also lagged behind the State Street Utilities Select Sector SPDR Fund (XLU), which gained approximately 10.5% over the past year [3] Financial Results - For Q3, PPL reported an adjusted EPS of $0.48, exceeding Wall Street's expectation of $0.46, with revenue of $2.24 billion, surpassing the forecast of $2.17 billion [4] - The company expects full-year adjusted EPS to be in the range of $1.78 to $1.84 [4] Earnings Forecast - Analysts project PPL's EPS to grow by 7.7% to $1.82 on a diluted basis for FY2025 [5] - PPL's earnings surprise history is mixed, with the company surpassing consensus estimates in two of the last four quarters [5] Analyst Ratings - The consensus rating among 16 analysts covering PPL stock is a "Moderate Buy," consisting of ten "Strong Buy" ratings, one "Moderate Buy," and five "Holds" [5] - This consensus is slightly more bullish than two months ago, when seven analysts recommended a "Strong Buy" for the stock [7] Price Targets - PPL's mean price target of $40 indicates a premium of 12.7% from current price levels, while the highest price target of $44 suggests an upside potential of 23.9% [8]

Core Insights - CMS Energy Corporation's strong focus on infrastructure modernization and renewable energy investments is likely to support its performance, complemented by the stability of its regulated utility operations in Michigan [1] Group 1: Company Strengths - CMS Energy benefits from stable and regulated utility operations in Michigan, with over 95% of its earnings derived from these low-risk, stable revenue streams [2][8] - The company plans to invest $20 billion in capital expenditures through 2029 to upgrade infrastructure and enhance clean power generation, thereby improving customer reliability and resiliency [3][8] - CMS aims to add 9 GW of solar and 4 GW of wind capacity to its generation portfolio over the next two decades, along with over 850 MW of battery storage by 2030 [4] Group 2: Challenges Faced by CMS - CMS incurs significant costs related to the construction, operation, and closure of solid waste disposal facilities for coal ash, with estimated capital expenditures of $240 million from 2025 through 2029 to comply with regulations [5][8] Group 3: Industry Trends - The shift to renewable energy is prompting electric utilities in the U.S. to evolve, with companies like CMS, Alliant Energy, PPL Corp., and Dominion Energy focusing on expanding their renewable portfolios [6] - Other utilities are also making substantial investments in renewable energy and infrastructure, with Alliant Energy planning $13.4 billion in capital expenditures from 2026 to 2029 [7][10]

Core Insights - Duke Energy (DUK) operates primarily as a regulated utility, benefiting from stable and predictable revenues due to regulatory frameworks that allow for approved returns on investments [1][9] - The company plans to invest approximately $190-$200 billion over the next decade, focusing on grid modernization and clean energy projects, with $95-$105 billion allocated for the period of 2026-2030 [3][9] - DUK's adjusted earnings per share (EPS) growth is projected to be in the range of 5-7% through 2029, supported by efficient cost recovery mechanisms [4][9] Investment and Financial Performance - The regulatory structure enables DUK to recover costs through customer rates, including fluctuating fuel expenses, allowing for investments in large-scale generation assets [2] - The Zacks Consensus Estimate indicates a year-over-year EPS increase of 7.12% for 2025 and 6.1% for 2026 [8] - DUK is currently trading at a premium with a forward 12-month price-to-earnings ratio of 17.49X compared to the industry average of 15.31X [11] Market Position and Growth Strategy - DUK operates in constructive and growing jurisdictions with supportive regulatory environments, which reduces business risk and enhances its investment profile [3] - The company’s capital spending is primarily focused on regulated infrastructure, grid upgrades, and clean energy projects, which are expected to drive long-term growth [3][9] - In the past year, DUK's shares have increased by 8.8%, while the industry has seen a growth of 22.9% [13]