Company Overview - Essential Utilities (WTRG) is based in Bryn Mawr and operates in the Utilities sector, with a year-to-date share price change of 2.78% [3] - The company currently pays a dividend of $0.33 per share, resulting in a dividend yield of 3.49%, which is higher than the Utility - Water Supply industry's yield of 2.53% and the S&P 500's yield of 1.52% [3] Dividend Performance - The current annualized dividend of Essential Utilities is $1.30, reflecting a 2.8% increase from the previous year [4] - Over the past five years, the company has increased its dividend five times, achieving an average annual increase of 6.53% [4] - The current payout ratio is 58%, indicating that the company paid out 58% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Investment Appeal - The Zacks Consensus Estimate for 2025 projects earnings of $2.10 per share, which represents a year-over-year earnings growth rate of 6.60% [5] - Essential Utilities is considered an attractive investment opportunity due to its strong dividend yield and a Zacks Rank of 2 (Buy), suggesting favorable market conditions for the stock [6]

Core Viewpoint - NextEra Energy (NEE) has shown strong operational performance and a growing customer base, leading to a rise in share price despite a decline in the broader utility sector [2][8]. Group 1: Stock Performance - NEE shares have increased by 0.8% over the past month, outperforming the Zacks Utility - Electric Power industry's decline of 2.1% [1][8]. - The stock is trading above its 50 and 200-day simple moving averages, indicating a bullish trend [6]. Group 2: Demand and Growth Factors - Florida's expanding economy, characterized by a robust job market and population inflows, is driving increased electricity demand, benefiting NEE's subsidiary, Florida Power & Light (FPL), which serves over 12 million customers [10]. - The merger with Gulf Power has strengthened NEE's customer base and operational efficiency, laying a foundation for long-term earnings growth [11]. Group 3: Financial Outlook - NEE expects its 2025 earnings per share to be in the range of $3.45-$3.70, reflecting a year-over-year growth of 7.29% and 7.95% for 2025 and 2026, respectively [15]. - The company plans to increase its dividend rate annually by 10% at least through 2026, with a current annual dividend of $2.27 per share and a yield of 3.05% [22]. Group 4: Capital and Investment Strategy - The Federal Reserve's interest rate cuts are expected to lower capital servicing costs for NEE, enhancing its financial outlook [12]. - NEE's Energy Resources subsidiary aims to add 36.5-46.5 GW of new renewable energy capacity from 2024 to 2027, with a current renewable backlog exceeding 28 GW [14]. Group 5: Valuation and Returns - NEE's trailing 12-month return on equity (ROE) stands at 12.06%, surpassing the industry average of 10.41%, indicating efficient use of shareholders' equity [19]. - The company is currently trading at a forward 12-month P/E ratio of 19.42, which is a premium compared to the industry average of 14.63 [23].

Core Viewpoint - The Federal Reserve is maintaining a cautious stance regarding interest rate cuts due to concerns over inflationary pressures from tariffs imposed by President Trump, leading to uncertainty in the market [1][5][6]. Federal Reserve Meeting Insights - The minutes from the latest Federal Reserve meeting indicate that most officials are not in a hurry to implement an immediate rate cut, suggesting a wait-and-see approach [2][5]. - A delay in rate cuts could lead to increased volatility in the stock market [2][7]. - Most participants believe that any inflationary impact from tariffs will be temporary or modest, and there is no urgency for rate cuts in the near term [6]. Investment Recommendations - Given the current uncertainty, it is advisable to invest in defensive stocks from the utility and consumer staples sectors, which are considered safe havens [3][11]. - Recommended stocks include: - **Atmos Energy Corporation (ATO)**: Expected earnings growth rate of 6%, Zacks Rank 2, beta of 0.70, and a dividend yield of 2.27% [9]. - **Fortis, Inc. (FTS)**: Expected earnings growth rate of 3.8%, Zacks Rank 2, beta of 0.48, and a dividend yield of 3.81% [13]. - **Colgate-Palmolive Company (CL)**: Expected earnings growth rate of 1.7%, Zacks Rank 2, beta of 0.37, and a dividend yield of 2.27% [15]. - **The Coca-Cola Company (KO)**: Expected earnings growth rate of 3.1%, Zacks Rank 2, beta of 0.45, and a dividend yield of 2.94% [17]. Stock Characteristics - The recommended stocks are characterized by low beta (greater than 0 but less than 1), high dividend yields, and favorable Zacks Ranks, making them attractive in the current market environment [4][11].

Core Viewpoint - NextEra Energy (NEE) is well-positioned to continue its earnings-beat streak in the upcoming report, having surpassed earnings estimates consistently in recent quarters [1][5]. Earnings Performance - In the last reported quarter, NextEra achieved earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.97 per share, resulting in a surprise of 2.06% [2]. - In the previous quarter, the company was expected to report earnings of $0.51 per share but delivered $0.53 per share, leading to a surprise of 3.92% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for NextEra, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [5][8]. - The current Earnings ESP for NextEra stands at +1.98%, suggesting increased analyst optimism regarding its near-term earnings potential [8]. Zacks Rank and Success Rate - NextEra holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high probability of beating consensus estimates, with historical data showing nearly 70% success in such cases [6][8].

The second-quarter 2025 earnings season will kick off next week, with banking sector players due to report numbers. The overall picture ahead of this reporting cycle is one of continued resilience and a steadily improving outlook.Total S&P 500 earnings are expected to be up 4.9% from the year-ago period on 3.9% higher revenues, per the latest Earnings Trends report. While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relativ ...

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Is E.ON SE (EONGY) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.E.ON SE is one of 109 companies in the Utilities group. The Utilities group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the ...

Company Overview - DTE Energy is based in Detroit and operates in the Utilities sector, with a year-to-date share price change of 7.88% [3] - The company currently pays a dividend of $1.09 per share, resulting in a dividend yield of 3.35%, which is higher than the Utility - Electric Power industry's yield of 3.3% and the S&P 500's yield of 1.53% [3] Dividend Performance - DTE Energy's annualized dividend of $4.36 has increased by 5.1% from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 1.80% [4] - The current payout ratio is 60%, indicating that the company distributes 60% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for DTE Energy's earnings in 2025 is $7.21 per share, reflecting an expected increase of 5.56% from the previous year [5] - The company is viewed as a strong dividend investment opportunity, particularly due to its solid earnings growth prospects [6] Investment Considerations - DTE Energy is considered a compelling investment option for income investors, especially given its strong dividend profile and current Zacks Rank of 3 (Hold) [6]

Utility stock AES Corp (NYSE:AES) is surging today, up 16% at $12.84 at last glance, after reports that the company is exploring sale options amid takeover interest. The power sector has been drawing acquisition attention lately due to artificial intelligence (AI) and cryptocurrency mining. Headed for its biggest single-day percentage gain since May 8, 2009, AES earlier hit its highest levels since March of this year before paring gains. There are several layers of potential resistance the stock is grapplin ...

Core Viewpoint - Atmos Energy Corporation (ATO) is positioned to benefit from increasing natural gas demand, supported by a growing customer base and planned investments to enhance pipeline reliability and operational performance [1][2]. Growth Outlook & Financial Performance - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has risen by 0.3% to $7.24 over the past 60 days [3]. - Fiscal 2025 sales are projected at $4.80 billion, reflecting a year-over-year increase of 15.3% [3][8]. - ATO's long-term earnings growth rate is estimated at 7.2%, with an average earnings surprise of 2.59% over the last four quarters [3]. Investment Returns - ATO's return on invested capital (ROIC) stands at 3.25%, outperforming the industry average of 2.62% [4][8]. - The company's total debt to capital ratio is 39.30%, which is better than the industry average of 50.49% [9]. Strategic Investments & Customer Expansion - ATO plans to invest $3.7 billion in capital expenditures for fiscal 2025 and a total of $24 billion from fiscal 2025 through 2029 to enhance infrastructure and operational capabilities [5][8]. - In the fiscal second quarter of 2025, ATO allocated approximately $225 million to expand its customer base, adding nine new industrial customers with an expected annual load of 8 billion cubic feet (Bcf) [6]. Shareholder Returns - ATO currently pays a quarterly dividend of 87 cents per share, leading to an annualized dividend of $3.48 and a dividend yield of 2.29% [7]. - The company aims to increase its dividend by 6-8% annually through fiscal 2026, pending board approval [7]. Stock Performance - Over the past six months, ATO shares have increased by 10.9%, compared to the industry's growth of 3.1% [10].

Thames Water says it’s in daily discussions with creditors as the beleaguered UK utility chases a deal to turn its finances around and fend off nationalization https://t.co/tI1uzhTZWZ ...