$9.8 Billion Utilities ETF Is A 3% Yielding Backdoor Bet on AI's Explosive Growth - 24/7 Wall St.[S&P 5006,977.20 +0.31%][Dow Jones50,456.70 +0.38%][Nasdaq 10025,265.40 +0.31%][Russell 20002,709.27 +0.83%][FTSE 10010,454.80 +0.77%][Nikkei 22558,239.20 +0.38%][Investing]# $9.8 Billion Utilities ETF Is A 3% Yielding Backdoor Bet on AI's Explosive Growth### Quick ReadVanguard Utilities ETF (VPU) yields 2.73% with 0.09% fees and gained 14.31% over the past year.NextEra Energy raised its dividend 10% in 2025. Co ...

Market Overview - US equity futures are flat, with S&P and Nasdaq 100 futures both up 0.1% as the market anticipates weaker payroll data following a Retail Sales miss and weaker high-frequency data [1] - International markets show mixed trends, with Japan closed, KOSPI up 1%, and HSI up 0.3%, while European markets are mostly flat to down [1] - Commodities are moving higher, led by silver, with crude oil prices quietly rising [1] Company Performance - In premarket trading, Mag 7 stocks are mixed, with Nvidia up 0.6% and Tesla down 0.2% [3] - Astera Labs falls 11% after reporting disappointing fourth-quarter results and announcing the retirement of its CFO [3] - Beta Technologies climbs 18% after Amazon disclosed a stake in the electric aircraft manufacturer [3] - Centrus Energy falls 8% as its fourth-quarter earnings per share missed analyst estimates due to higher-than-expected capex spending [3] - Cloudflare gains 14% after beating fourth-quarter expectations and providing a bullish revenue forecast [3] - Humana falls 6% after forecasting full-year profit below Wall Street expectations, raising concerns about the US health-insurance industry [3] - Kraft Heinz drops 6% after pausing its planned separation as the new CEO seeks to improve results [3] - Lyft falls 17% after issuing a disappointing forecast that missed Wall Street expectations [3] - Mattel slumps 26% after its 2026 adjusted earnings-per-share forecast missed analyst estimates, leading to a downgrade at JPMorgan [3] - Moderna falls 10% after US regulators refused to review its novel mRNA flu vaccine [3] - Rapid7 declines 22% after a disappointing outlook, with analysts citing weakness in annual recurring revenue [3] Earnings Reports - Out of 326 S&P 500 companies that have reported, 78% have beaten analyst forecasts, while 17% have missed [11] - T-Mobile, Shopify, and Kraft Heinz are among companies expected to report before the market opens [11] Economic Indicators - Analysts expect January's payrolls report to show 65,000 job additions, with a whisper number of 35,000, amid expectations of a significant downward revision of 750,000 to 900,000 jobs through March 2025 [4][25] - The unemployment rate is expected to remain steady at 4.4% [25] - The market is currently pricing in two or three Fed rate cuts this year, with a growing probability of a cut by April [5][38]

Group 1: Market Overview - The Dow Jones Industrial Average rose by 52.27 points, or 0.10%, reaching 50,188.14, after hitting an intraday record high [4][8] - The S&P 500 declined by 23.01 points, or 0.33%, closing at 6,941.81, while the Nasdaq Composite fell by 136.20 points, or 0.59%, to 23,102.47 [4][8] - The S&P 500 narrowly missed a return to its late January record close, indicating some hesitation as it approaches high levels [5][8] Group 2: Retail Sales and Consumer Spending - U.S. retail sales unexpectedly stalled in December, with households reducing spending on vehicles and other big-ticket items, suggesting a slower growth path for consumer spending [7][8] - The flat retail sales reading contrasted with economists' estimates of a 0.4% growth [7][8] Group 3: Technology Sector and AI Investment - Major technology companies, including Amazon, Alphabet, Meta, and Microsoft, are projected to collectively spend hundreds of billions in 2026 to support the artificial intelligence boom [7][8] - Concerns about the financial commitments required for AI development are influencing investor sentiment [7][8] Group 4: Individual Stock Performances - Datadog's shares surged by 13.7% after exceeding quarterly estimates, leading the S&P 500 percentage gainers [5][8] - Marriott's stock rose by 8.5%, marking its largest daily gain since April, driven by a projected 35% increase in fees from co-branded credit cards [5][8] - Spotify shares increased by 14.7% following a forecast of first-quarter earnings above expectations, attributed to strong user growth and price hikes [5][8] - Conversely, S&P Global's shares fell by 9.7% after forecasting 2026 profit below analysts' estimates, impacting peers like Moody's and MSCI [5][8] Group 5: Market Sentiment and Future Outlook - Trader hopes for a more dovish Federal Reserve increased, with the probability of a one-notch rate cut in April rising to 36.9% from 32.2% [7][8] - Caution prevails ahead of the upcoming nonfarm payrolls report, with concerns about potential lower job gains due to slower labor force growth and higher productivity from AI advancements [2][8]

Redemption Announcement - Southern California Edison will redeem all outstanding shares of its Series K Preference Stock, leading to the redemption of all 5.45% Fixed-to-Floating Rate Trust Preference Securities on March 15, 2026, at a price of $25 per security plus accrued distributions [1][1][1] - Holders of Trust Preference Securities must follow specific procedures for redemption, including surrendering their securities to the Trustee for payment [1][1] Wildfire Recovery Compensation Program - Southern California Edison has extended 210 compensation offers totaling $117 million to individuals and businesses affected by the Eaton Fire, with an average offer being made 30 days after a substantially complete claim [1][1][1] - The company is committed to providing dedicated support for the Wildfire Recovery Compensation Program, offering resources and assistance in multiple languages until November 30, 2026 [1][1]

Financial Data and Key Metrics Changes - Duke Energy reported earnings per share (EPS) of $6.31 for 2025, reflecting a 7% increase from 2024 and exceeding the midpoint of their guidance range [3][12] - The company introduced 2026 EPS guidance of $6.55-$6.80 and extended its long-term EPS growth rate of 5%-7% through 2030 [3][4] Business Line Data and Key Metrics Changes - The electric segment is expected to drive most of the growth in 2026, supported by multi-year rate plans in North Carolina and Florida, and new rates from South Carolina [12] - The gas segment will see growth from Piedmont Integrity Management riders and new rates at Duke Energy Kentucky [12] Market Data and Key Metrics Changes - The company signed electric service agreements (ESAs) for an additional 1.5 GW of new data centers, bringing the total to approximately 4.5 GW secured under ESAs [14][88] - Data centers are projected to comprise about 75% of the economic development profile by the end of 2030, indicating a growing component of load growth [88] Company Strategy and Development Direction - Duke Energy's capital plan has increased to $103 billion, the largest among regulated utilities, driving 9.6% earnings-based growth through 2030 [4][16] - The company is focused on maintaining affordability while investing in critical energy infrastructure and advancing its all-of-the-above generation strategy, including natural gas, battery storage, and potential nuclear projects [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the top half of the EPS growth range starting in 2028, driven by load growth from data centers and ongoing investments [4][20] - The company emphasized its commitment to keeping rates below inflation and managing costs effectively to protect customers from rising energy bills [4][8] Other Important Information - Duke Energy's credit profile improved, with a reported 14.8% funds from operations (FFO) to debt ratio in 2025, and a forecast of approximately 14.5% for 2026 [17][18] - The company is on track to close the sale of its Piedmont Tennessee business and expects to strengthen its credit profile through this transaction [18] Q&A Session Summary Question: Costs or impacts from recent storms - Management confirmed that costs from the recent storms are still being compiled but do not anticipate any impact on guidance for 2026 [28][32] Question: North Carolina rate case strategy - Management indicated a focus on delivering reliable and affordable energy and expressed confidence in reaching a constructive settlement, similar to past cases [34][35] Question: CapEx outlook and data center opportunities - Management expressed confidence in the growth outlook supported by signed ESAs, with a robust pipeline of projects [45][46] Question: FFO to debt targets - Management stated that achieving the 15% FFO to debt target relies on executing the current plan without needing changes in regulatory policy [55][57] Question: Generation build cycle and EPC contracts - Management confirmed that they have planned for the supply chain and are using a programmatic approach with EPC vendors to ensure timely project delivery [62] Question: Data center load growth impact - Management indicated that data centers are becoming a larger component of load growth, with significant contributions expected by 2030 [88][90]

Core Viewpoint - Alliant Energy Corporation (LNT) has shown mixed performance in the market, with a slight underperformance compared to the broader S&P 500 Index and the Utilities Select Sector SPDR Fund, primarily due to increased operational costs and a decline in adjusted EPS in Q3 2025 [2][3][6]. Financial Performance - LNT's market capitalization is valued at $17.2 billion, providing regulated electricity, natural gas, and water services [1]. - In Q3 2025, LNT reported an adjusted EPS of $1.12, which is a decrease of 2.6% year-over-year, while revenue increased by 11.9% to $1.2 billion [6]. - For the fiscal year ending December 2025, analysts project LNT's EPS to grow by 5.6% to $3.21 on a diluted basis [7]. Stock Performance - Over the past year, LNT's stock has gained 12.5%, underperforming the S&P 500 Index's 15.6% increase, but has outperformed the Utilities Select Sector SPDR Fund, which gained 11.3% [2][3]. - Year-to-date, LNT stock is up 2.9%, compared to the S&P 500's 1.7% rise [2]. Analyst Ratings - Among 12 analysts covering LNT, the consensus rating is a "Moderate Buy," with seven "Strong Buy" ratings and five "Holds" [7]. - Barclays PLC upgraded LNT to an "Equal Weight" rating with a price target of $67, indicating a marginal upside potential [8]. - The mean price target of $72.60 suggests an 8.5% premium to current price levels, while the highest price target of $78 indicates a potential upside of 16.6% [8].

Core Insights - The focus is on in-depth research of various companies across different sectors, particularly in commodities and technology, with a strong emphasis on metals and mining stocks [1] Group 1: Company Research - The company has over a decade of experience in researching a wide range of industries, including commodities like oil, natural gas, gold, and copper [1] - The company has transitioned from writing a blog to creating a value investing-focused YouTube channel, indicating a shift in content delivery and audience engagement [1] - The company has researched hundreds of different companies, showcasing a broad analytical scope and expertise [1] Group 2: Industry Focus - The primary focus is on metals and mining stocks, but the company is also comfortable analyzing other sectors such as consumer discretionary/staples, REITs, and utilities [1]

Company Overview - Dominion Energy has resumed its $11 billion Coastal Wind project, indicating a recovery and growth potential for the company [2] - The company is also experiencing significant opportunities from data centers, driven by increasing demand [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios through a fact-based research strategy, which includes thorough analysis of 10Ks, analyst commentary, market reports, and investor presentations [2] - The Retirement Forum offers model portfolios, macroeconomic overviews, in-depth company analysis, and retirement planning information to help maximize capital and income [2]

Core Insights - Resilient Structures (RS) has entered a long-term supply agreement with CenterPoint Energy to support the Greater Houston Resiliency Initiative, aimed at enhancing the region's energy infrastructure against extreme weather [1][4] - The agreement will lead to the expansion of RS's operations in Humble, Texas, creating over 200 new jobs and aligning with CenterPoint's goal of developing a resilient coastal grid for 2.9 million customers in Greater Houston [2][3] Company Overview - Resilient Structures is a leading manufacturer of high-performance composite utility poles, with over 30 years in the industry and operations in Texas, Utah, and Ontario [5] - CenterPoint Energy is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across several states, with assets totaling around $45 billion as of September 30, 2025 [6]

Core Insights - Public Service Enterprise Group Incorporated (PEG) has a market capitalization of $40.3 billion and operates in electric and gas utility services as well as nuclear power generation [1] Stock Performance - PEG shares have underperformed the broader market over the past 52 weeks, declining by 3.9% compared to a nearly 14% increase in the S&P 500 Index [2] - Year-to-date, PEG shares have shown marginal gains, while the S&P 500 has increased by 1.3% [2] - PEG stock has also lagged behind the State Street Utilities Select Sector SPDR ETF (XLU), which returned 10.7% over the same period [3] Financial Performance - In Q3 2025, PEG reported revenue of $2.37 billion, which was weaker than expected, but adjusted EPS of $1.13 exceeded consensus estimates and increased from $0.90 a year earlier [6] - Adjusted operating earnings for Q3 reached $565 million, primarily driven by $515 million from the PSE&G segment [6] - For the fiscal year ending December 2025, analysts project PEG's adjusted EPS to grow by 9.8% year-over-year to $4.04 [7] Analyst Ratings and Price Targets - Among 21 analysts covering PEG, the consensus rating is a "Moderate Buy," with 10 "Strong Buy" ratings and 11 "Holds" [7] - Bank of America Securities analyst Ross Fowler reaffirmed a "Buy" rating with a price target of $84, while the mean price target of $89.20 suggests a 10.6% premium to current levels [8] - The highest price target of $101 indicates a potential upside of 25.2% from current price levels [8]