Core Insights - Envestnet Asset Management Inc. reduced its stake in DTE Energy by 3.3%, owning 168,055 shares worth approximately $23.77 million after selling 5,812 shares in Q3 [2] - Other institutional investors have increased their holdings in DTE Energy, with Empowered Funds LLC growing its stake by 200.7% in Q1, now owning 9,909 shares valued at $1.37 million [3] - DTE Energy has received various analyst ratings, with Barclays lowering its target price from $148.00 to $141.00, while ten analysts rated the stock as a Buy and four as Hold, resulting in an average price target of $147.69 [4] Institutional Holdings - 76.06% of DTE Energy's stock is owned by hedge funds and institutional investors [3] - Woodline Partners LP increased its position by 40.8% in Q1, now holding 17,509 shares valued at $2.42 million [3] - Intech Investment Management LLC raised its stake by 6.5%, owning 12,687 shares worth $1.75 million [3] Stock Performance - DTE Energy shares opened at $144.87, with a 1-year low of $123.69 and a high of $145.41 [5] - The company has a market capitalization of $30.09 billion, a P/E ratio of 21.75, and a beta of 0.49 [5] Dividend Information - DTE Energy announced a quarterly dividend of $1.165 per share, with an annualized yield of 3.2% and a payout ratio of 69.97% [6] Company Overview - DTE Energy is an integrated energy company based in Detroit, Michigan, focusing on regulated utility operations and non-utility energy businesses [7] - The utility segment emphasizes maintaining and upgrading energy delivery infrastructure to ensure reliable service [7] - Beyond regulated utilities, DTE Energy also operates non-utility businesses that develop and manage power generation projects [8]

Core Viewpoint - Avista has filed for an annual rate adjustment with the Idaho Public Utilities Commission, proposing to increase overall electric revenues by approximately $25.2 million or 7.4%, effective May 1, 2026 [1][2]. Group 1: Rate Adjustment Details - The proposed rate adjustment aims to modify the funding level for Avista's electric energy efficiency programs, aligning customer rates with actual operational costs [2]. - The adjustment is necessary to recover costs incurred in 2025 that exceeded the levels included in current rates [2]. Group 2: Customer Impact - If approved, residential electric customers in Idaho using an average of 939 kilowatt hours per month would see their monthly bills increase from $115.54 to $124.44, an increase of $8.90 per month or approximately 7.7% [3]. - The requested electric rate change by rate schedule includes: - Residential Service - Schedule 1: 7.4% - General Service - Schedules 11 & 12: 7.3% - Large General Service - Schedules 21 & 22: 7.1% - Extra Large General Service - Schedule 25: 7.5% - Extra Large General Service - Schedule 25P: 7.9% - Pumping Service - Schedules 31 & 32: 7.2% - Street & Area Lights - Schedules 41-49: 7.1% - Overall: 7.4% [3]. Group 3: Company Overview - Avista Corp. is an energy company involved in the production, transmission, and distribution of energy, serving 422,000 electric customers and 383,000 natural gas customers across a service territory of 30,000 square miles [5][6]. - The company operates in eastern Washington, northern Idaho, and parts of southern and eastern Oregon, with a total population of 1.7 million in its service area [5].

Core Viewpoint - Eversource Energy reported significant growth in earnings for the full year 2025 compared to 2024, indicating strong financial performance and operational efficiency [1]. Financial Performance - Full-year 2025 earnings reached $1.69 billion, translating to $4.56 per share, a substantial increase from the previous year's earnings of $811.7 million, or $2.27 per share [1]. - Non-GAAP recurring earnings for 2025 totaled $1.77 billion, or $4.76 per share, reflecting a robust operational performance [1].

Core Insights - The ACES ETF is positioned to benefit from a $1.4 trillion utility infrastructure upgrade through 2030, driven by the need to modernize an aging grid to meet rising power demands [1] - Utilities have increased capital spending by 12% in 2025, with expectations of an additional 6% increase in 2026 as they address surging electricity needs and replace outdated equipment [1] - Approximately 40% of the U.S. grid infrastructure is over 40 years old, creating a bottleneck that necessitates an overhaul, benefiting companies within ACES' holdings [1] Investment Opportunities - ACES has a 16.2% allocation to energy management and storage firms that provide equipment and technology for grid modernization [1] - Itron (ITRI), making up 4.9% of ACES, manufactures smart meters and grid management equipment essential for utilities [1] - The fund also includes renewable energy developers such as Brookfield Renewable Partners (BEP) at nearly 5% and Clearway Energy (CWEN) at 3.9% [1] Performance Metrics - ACES has total assets of $115.8 million as of December and has returned 36.2% over the past year, significantly outperforming the S&P 1000 Index, which returned 7.04% in the same period [1] Market Trends - Battery energy storage systems are becoming integral to utility planning, with over 30 U.S. states expected to show strong market conditions for battery storage in the next five years [1] - Fluence Energy (FLNC), representing 1.5% of ACES, surged 55.6% in January after securing contracts for battery technology for a clean energy center [1] - Eos Energy Enterprises (EOSE), holding a 3.8% weight in the fund, gained 27.8% following the launch of a new battery architecture [1] Sector Dynamics - Total electricity demand rose by 2.3% in 2025, with data centers projected to account for 10% of total electricity consumption by 2030 [1] - U.S. electricity demand growth is expected to quadruple in 2026, driven by AI computing facilities and broader electrification [1] - The clean energy sector is increasingly influenced by long-term capital expenditures related to infrastructure needs rather than short-term policy cycles [1]

Core Insights - Russia's drone and missile strikes on Ukraine's infrastructure have highlighted the importance of infrastructure resilience, which may influence investments in industrial and infrastructure-related ETFs [1][3][6] Investment Perspective - The ongoing attacks have targeted Ukraine's energy infrastructure, leading to power outages and necessitating repair work, which underscores a structural shift towards rebuilding energy grids and transport links globally [2][3][4] - Infrastructure ETFs, particularly those focused on utilities, energy pipelines, and transport companies, are expected to benefit from increased investments in power grid hardening and reconstruction efforts [4][6] Infrastructure Trends - Ukraine is moving parts of its power grid underground to enhance resilience, indicating a long-term trend in infrastructure development despite the high costs involved [5] - The global perspective on infrastructure resilience is expanding beyond conflict zones, with governments in the US and Europe aligning their investments with infrastructure and industrial ETFs [6] ETF Dynamics - Infrastructure ETFs are characterized by a slower reaction to market changes compared to defense stocks, as infrastructure spending typically unfolds over several years [7] - The ongoing geopolitical conflicts and targeted attacks on infrastructure support the investment thesis that resilience spending is becoming a fundamental aspect of global fiscal policy [7][10] Key Infrastructure Projects - Focus areas include grid reinforcement, undergrounding projects, railway and port reconstruction, energy diversification efforts, and cross-border infrastructure upgrades [8][9]

Market Overview - The US markets are experiencing a mixed performance, with the Dow down approximately 80 points, the S&P 500 down by 0.1%, and the NASDAQ down by about 0.3% [1] - Over the past week, the Dow and S&P 500 have both decreased by 1.5%, while the NASDAQ has fallen by more than 2% [1] - The market remains sensitive to AI-related threats to existing businesses, leading to increased selling pressure, particularly in the tech sector [1] Inflation and Consumer Behavior - The latest Consumer Price Index (CPI) report indicates inflation is rising less than expected, with food prices increasing by 2.9% in January, which is significantly higher than overall price increases [1][2] - A survey reveals that 62% of shoppers prioritize price over brand when making purchasing decisions, reflecting a strong focus on value among consumers [1][2] - The middle and lower-income consumers are reported to be stable but are stretching their budgets and being cautious with discretionary spending [1][2] Retail and Consumer Goods - Retailers perceived as offering higher value, such as Dollar General and Walmart, are seeing increased foot traffic as consumers seek price competitiveness [2] - Promotions are becoming a key strategy for brands to recapture market share, with 68% of new products being discovered through promotions [2] - A notable shift in shopping behavior is observed, with 32% of shoppers making spontaneous decisions based on price and promotions rather than sticking to a pre-made list [2] Energy Sector and Grid Resilience - The North American Electric Reliability Corporation (NERC) reports that tens of millions of people live in areas with a high risk of electricity shortfalls, highlighting the need for significant investment in the power grid [3] - The increasing demand for reliable power is driven by the electrification of various sectors, including manufacturing and data centers, necessitating upgrades to the existing grid infrastructure [3] - Companies like American Superconductor are focusing on providing solutions to enhance power quality and reliability for industrial consumers [3] Corporate Developments - Rivian's shares surged after reporting better-than-expected fourth-quarter results and achieving its first annual gross profit, with expectations for the delivery of its R2 midsize SUV in the second quarter [4] - Pinterest's stock fell to its lowest level since 2020 following a weaker-than-expected first-quarter forecast, prompting multiple analyst downgrades [4] - Moderna reported fourth-quarter revenue that exceeded Wall Street expectations, but faces challenges with the FDA regarding its mRNA flu vaccine [4] Regulatory Changes - President Trump is considering narrowing the scope of steel and aluminum tariffs, which could lower prices for various goods, reflecting ongoing affordability concerns [5] - The Trump administration is repealing the Obama-era endangerment finding related to greenhouse gas regulation, which could significantly impact the auto industry and environmental regulations [5]

Financial Performance - For the fourth quarter of 2025, the company reported GAAP EPS of $4.56, up from $2.27 in 2024, and non-GAAP EPS of $4.76, compared to $1.01 in the fourth quarter of 2024 [2][5] - The company paid dividends of $3.01 per share, reflecting a 5.2% increase [3][5] - The full-year non-GAAP EPS for 2025 was $4.76, with GAAP EPS at $4.56 [5] Operational Highlights - The company achieved top-decile reliability performance and high service reliability, with customers experiencing outages only once in nearly two years [6] - Over $4 billion was deployed in capital for grid modernization and energy efficiency programs in 2025 [6] Capital and Investment Plans - The five-year regulated capital plan was raised to approximately $26.5 billion, indicating an 8.3% rate base growth through 2030 [5][8] - Major projects include the $1.8 billion Cambridge underground substation and ongoing work on the Revolution Wind project [12][13] Regulatory Developments - Eversource received approval for performance-based regulation rate adjustments in Massachusetts, including a $55 million increase for NSTAR Electric effective January 1, 2026 [10] - A decision on storm cost prudency in Connecticut is expected in July, which could enable securitization proceeds of up to $1.5 billion [15] Future Guidance - The company provided 2026 EPS guidance of $4.80 to $4.95, not assuming the sale of Aquarion Water [16] - Expected cash needs for the five-year financing plan are approximately $34.5 billion to $35 billion, with cash from operations projected to cover nearly 70% of these needs [18][21] Long-term Outlook - Management anticipates an earnings growth inflection in 2027 and 2028, with long-term EPS growth expectations of 5% to 7% based on 2025 non-GAAP recurring EPS [19]

Core Viewpoint - Duke Energy is providing support to Florida customers facing higher power bills due to a recent cold snap, offering resources for bill payment and fraud prevention [1] Group 1: Customer Support Initiatives - Duke Energy anticipates an increase in scam reports similar to the nearly 800 reports received in February 2025, urging customers to recognize common scams [1] - The company offers various assistance programs, including installment plans, due date extensions, and access to the Share the Light Fund® [1] - Energy efficiency solutions are available, such as free home assessments and rebates for improvement projects to help customers reduce energy usage over time [1] Group 2: Company Overview - Duke Energy Florida, a subsidiary of Duke Energy, has an energy capacity of 12,300 megawatts, serving 2 million customers across a 13,000-square-mile area in Florida [1] - Duke Energy is one of America's largest energy holding companies, serving 8.4 million customers across multiple states and owning a total energy capacity of 54,800 megawatts [1] - The company is focused on an ambitious energy transition, investing in electric grid upgrades and cleaner energy generation methods, including natural gas, nuclear, renewables, and energy storage [1]

Core Insights - TXNM Energy has a 2.8% dividend yield, but its sustainability is questioned due to negative free cash flow and reliance on debt for dividend payments [1][2] Dividend Profile - TXNM Energy paid $140.3 million in dividends in 2024, with a quarterly payout increase from $0.4075 to $0.4225, marking a 3.7% rise [1] - The company has a 27-year history of uninterrupted dividend payments, with a total growth of 92% in dividends from $0.22 in 2016 to $0.4225 in early 2026, reflecting a compound annual growth rate of approximately 6.8% [1] - The current stock price of $59.39 results in an annualized dividend of $1.63, yielding 2.76%, slightly above the Utilities Select Sector SPDR ETF's yield of 2.75% [1] Cash Flow Issues - TXNM generated $508.2 million in operating cash flow in 2024 but had negative free cash flow of $738.9 million due to $1.25 billion in capital expenditures [1] - The company has consistently reported negative free cash flow from 2019 to 2024, with a free cash flow coverage ratio of only 0.19x for dividends [1] - Capital expenditures have increased significantly, from 122% of operating cash flow in 2019 to 245% in 2024, driven by infrastructure investments [1] Earnings Quality - TXNM reported a net income of $242.7 million in 2024, a 174.6% increase from $88.3 million in 2023, with net margin improving from 4.6% to 12.3% [1] - The payout ratio based on Q4 2025's GAAP EPS of $1.22 exceeds 133%, indicating a troubling reliance on earnings for dividend payments [1] - Interest expenses rose to $228.1 million in 2024, consuming 11.6% of revenue, which competes with dividend payments for available cash [1] Acquisition Context - TXNM is undergoing a $11.5 billion acquisition by Blackstone, pending regulatory approvals, which could impact dividend policies post-acquisition [1][2] - The acquisition has received shareholder and state regulatory approval, but federal approvals are still pending, creating uncertainty for investors [1] Balance Sheet Strength - TXNM's shareholders' equity increased by 28.76% year-over-year to $3.18 billion, with total assets reaching $11.68 billion, up 7.67% [2] - The debt-to-equity ratio stands at approximately 2.66x, which is manageable for regulated utilities given their predictable cash flows [2] Total Return Performance - TXNM shares have appreciated by 22.03% over the past year, with five-year and ten-year returns of 43.19% and 150.11%, respectively, indicating strong capital gains [2] - The price performance reflects optimism about growth prospects in Texas, driven by demographic growth and electricity demand [2] Conclusion - While TXNM has a strong historical dividend payment record, current financial challenges raise concerns about the sustainability of its dividend, particularly given its reliance on external financing and negative free cash flow [2]

Market Overview - Inflation has dropped to its lowest level in eight months, with core inflation at its lowest since March 2021, indicating a potential shift in market dynamics [1][3] - The current market sentiment suggests that bad news may not be beneficial for the market, as it could limit the Federal Reserve's ability to be more accommodative [2][3] Federal Reserve Insights - The Federal Reserve is less likely to cut rates with inflation decreasing and job numbers unexpectedly high, leading to a lower unemployment rate of 4.3% [4][5] - Citigroup's analysis suggests no rate cuts in the first half of the year but anticipates three cuts in the latter half, raising questions about the underlying analytics driving this forecast [5][7] Sector Analysis - The software sector has been oversold, and while AI poses a threat, it is not yet time to abandon software investments [8][13] - Companies like Intuit, which have strategic partnerships in AI, are seen as potential investment opportunities due to their revenue growth and current valuation being 50% off their all-time high [10][11][13] Energy and Infrastructure - Energy companies, particularly Duke Energy, are highlighted as strong long-term plays due to their capital expenditure plans to support data centers necessary for AI [15] Gold and Bitcoin Perspectives - Gold is viewed as having potential for significant price increases, with some analysis suggesting it could be valued around $20,000 per troy ounce based on inflation [18] - Bitcoin remains speculative, with expectations of further price declines in the near term, but it is recognized as a long-term investment due to its foundational role in blockchain technology [20][22] Market Expectations - The market is expected to experience volatility, with a projected overall positive performance for the year, but not at the levels seen in previous years, estimating a 5-10% increase [22][23]