Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. Telefonica (TEF) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.Telefonica is a member of the Utilities sector. This group includes 106 individual stocks and currently ...

Core Viewpoint - PPL Corporation has shown a mixed performance in the stock market, with a 2.5% increase in shares over the last three months, underperforming the Zacks Utility-Electric Power industry's 5.2% rally, while maintaining strong financial discipline and efficient execution of plans [1][2]. Price Performance - PPL shares have gained 2.5% in the last three months compared to the Zacks Utility-Electric Power industry's 5.2% increase [1]. - The average trading volume for PPL in the last three months was approximately 5.83 million shares per day, significantly higher than DTE Energy's 1.56 million shares [5]. Factors Supporting PPL Stock - PPL's service areas in Pennsylvania and Kentucky are seeing increased demand from data centers, with projected new requests reaching 50 gigawatts (GW) in Pennsylvania and 6 GW in Kentucky between 2026 and 2034 [7]. - The company plans to invest $20 billion from 2025 to 2028 to meet rising demand and improve service quality, with over 60% of this investment benefiting from "contemporaneous recovery" to minimize regulatory lag [8]. - PPL aims to reduce expenses by at least $175 million by 2026 compared to 2021 levels, which is expected to strengthen profit margins [9]. - PPL plans to invest over $8 billion in electric and gas distribution infrastructure between 2025 and 2028 to enhance system reliability [10]. Earnings Estimates - PPL expects earnings per share (EPS) of $1.75-$1.87 for 2025, with the Zacks Consensus Estimate currently at $1.82 per share [11]. - The Zacks Consensus Estimate indicates year-over-year EPS increases of 7.5% for 2025 and 8.26% for 2026 [11]. Earnings Surprise History - PPL has outperformed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 8.84% [12]. Capital Return Program - PPL continues to return value to shareholders through dividends, with a current annual dividend of $1.09 and projected growth of 6-8% per year through 2027 [14]. - The targeted dividend payout ratio is expected to be in the range of 60-65% [15]. Valuation and Performance Metrics - PPL is currently valued at a premium compared to its industry on a forward 12-month P/E basis [17]. - PPL's trailing 12-month return on equity (ROE) is 9.14%, lower than the industry average of 10.05% [19]. Strategic Outlook - PPL's investments in clean energy generation and infrastructure are expected to support reliable service, aided by efficient operational management and a supportive regulatory environment [21].

CenterPoint Energy Inc. (CNP) focuses on consistent investments in infrastructure upgrades and maintenance, which has played a critical role in the company's expanding operations. Given its strong growth, CNP makes for a solid investment option in the Zacks Utility Electric Power industry.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.CNP’s Growth ForecastThe Zacks Consensus Estimate for CNP’s 2025 earnings per share (EPS) stands at $1.75, which i ...

Shares of NextEra Energy (NEE) have gained 9.2% in the last three months compared with the Zacks Utility - Electric Power industry’s rally of 5.1%. The company has also outperformed the Zacks Utilities sector in the same time frame.The increase in NextEra Energy’s share price reflects the company’s solid performance and expanding customer base, which is driving greater demand for its services. The decline in interest rates is expected to enhance the outlook for this capital-intensive business.Price Performa ...

Core Viewpoint - DTE Energy Corp. is positioned as a strong investment option in the Zacks Utility Electric Power industry due to its disciplined capital spending program, growth prospects, and low debt levels [1] Growth Forecast & Performance - The Zacks Consensus Estimate for DTE's 2025 earnings per share (EPS) has increased by 0.1%, while the 2026 EPS estimate has risen by 0.3% over the past 30 days [2] - Total revenue estimates for DTE are projected at $13.18 billion for 2025, indicating a growth of 5.8% from 2024, and $14.03 billion for 2026, suggesting a year-over-year increase of 6.5% [2] - DTE's long-term earnings growth rate is forecasted at 7.6%, with the company surpassing expectations in the last four quarters and achieving an average earnings surprise of 11.84% [3] Debt Profile - DTE's total debt to capital ratio stands at 19.89%, significantly lower than the industry average of 62.59% [4] - The times interest earned (TIE) ratio is 2.5, indicating the company can comfortably meet its interest obligations [4] Return on Equity - DTE's return on equity (ROE) is currently at 13%, outperforming the industry average of 10.34%, reflecting efficient utilization of funds [5] Shareholder Initiatives - DTE has consistently increased shareholder value through dividends, currently paying $1.09 per share quarterly, which translates to an annualized dividend of $4.36 and a dividend yield of 3.2% [6] - In the first quarter of 2025, DTE paid dividends totaling $217 million, up from $202 million in the previous year [6] Capital Allocation Plans - DTE plans to invest $30 billion over the next five years, a 20% increase from its previous investment plan, with $24 billion allocated for its subsidiary, DTE Electric [7] Diversification and Growth Targets - DTE is also expanding its non-utility operations, which diversifies its earnings stream and supports its long-term operating earnings growth target of 6-8% [8] Stock Performance - Over the past three months, DTE's stock has increased by 5.6%, outperforming the industry's average growth of 3% [9]

Core Viewpoint - Exelon Corporation (EXC) is positioned as a strong investment option in the utility sector due to its investment plans aimed at enhancing transmission and distribution infrastructure, which will improve service reliability and operational resilience [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has risen by 1.1% to $2.67 over the past 60 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $24.11 billion, reflecting a year-over-year increase of 4.7% [2] - Exelon's long-term earnings growth rate is estimated at 6.42%, with a trailing four-quarter average earnings surprise of 10.1% [2] Return on Equity (ROE) - Exelon's current ROE stands at 10.29%, slightly above the sector average of 10.2%, indicating effective utilization of shareholders' funds to generate income [3] Dividend Growth - Exelon maintains a quarterly dividend of 40 cents per share, translating to an annualized dividend of $1.60 [4] - The company aims to increase its dividend per share by 5-7% annually through 2028, pending board approval, with a long-term dividend payout ratio projected at 60% [5] - Exelon's current dividend yield is 3.79%, significantly higher than the Zacks S&P 500 composite average of 1.54% [5] Solvency - The time-to-interest earned ratio at the end of Q1 2024 was 2.5, indicating the company's strong ability to meet future interest obligations [6] Focus on Strategic Investments - Exelon plans to invest nearly $38 billion in regulated utility operations from 2025 to 2028, with allocations of $21.7 billion for electric distribution, $12.6 billion for electric transmission, and $3.8 billion for gas delivery [7] Share Price Performance - Over the past six months, Exelon's stock has returned 10.7%, outperforming the industry's growth of 0.2% [8]

Core Insights - The article emphasizes the importance of value investing, highlighting the identification of undervalued companies through fundamental analysis and metrics [2] - It introduces Zacks' Style Scores system, which helps investors find stocks with specific traits, particularly those with high grades in the "Value" category [3] Company Analysis: Avista (AVA) - Avista (AVA) has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential [4] - The stock's current P/E ratio is 14.25, which is lower than the industry average of 14.67, suggesting it may be undervalued [4] - AVA's P/B ratio is 1.15, significantly lower than the industry's average P/B of 2.08, indicating attractive valuation [5] - The P/S ratio for AVA is 1.55, compared to the industry's average of 2.28, further supporting its undervaluation [6] - AVA's P/CF ratio stands at 6.52, lower than the industry average of 8.65, reinforcing its appeal as a value stock [7] Company Analysis: Pampa Energia (PAM) - Pampa Energia (PAM) also holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong investment potential [8] - PAM's Forward P/E ratio is 6.78, significantly lower than the industry average of 14.67, suggesting it is undervalued [8] - The PEG ratio for PAM is 0.41, compared to the industry average of 1.87, indicating strong growth potential relative to its valuation [8] - PAM's P/B ratio is 1.39, lower than the industry's average of 2.08, suggesting it is undervalued [9] Conclusion - Both Avista and Pampa Energia are highlighted as potentially undervalued stocks based on various valuation metrics, making them attractive options for value investors [9]

Group 1 - Global Water Resources, Inc. reported quarterly earnings of $0.02 per share, matching the Zacks Consensus Estimate, but down from $0.03 per share a year ago [1] - The company posted revenues of $12.46 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 3.81% and up from $11.61 million year-over-year [2] - The stock has underperformed, losing about 11% since the beginning of the year compared to the S&P 500's gain of 0.1% [3] Group 2 - The earnings outlook for Global Water Resources is uncertain, with current consensus EPS estimates at $0.06 for the coming quarter and $0.22 for the current fiscal year [7] - The Zacks Rank for the stock is currently 4 (Sell), indicating expectations of underperformance in the near future [6] - The Utility - Water Supply industry is ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Company Overview - SJW (HTO) is headquartered in San Jose and operates in the Utilities sector, specifically in water supply [3] - The stock has experienced a price change of 5.55% since the beginning of the year [3] Dividend Information - SJW is currently paying a dividend of $0.42 per share, resulting in a dividend yield of 3.23%, which is higher than the Utility - Water Supply industry's yield of 2.47% and the S&P 500's yield of 1.53% [3] - The annualized dividend of $1.68 has increased by 5% from the previous year, with an average annual increase of 5.70% over the last five years [4] - The current payout ratio for SJW is 55%, indicating that it pays out 55% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for SJW's earnings in 2025 is $2.97 per share, reflecting a year-over-year earnings growth rate of 0.68% [5] Investment Appeal - SJW is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividen ...