Core Insights - The article compiles significant research calls from Wall Street that are influencing market movements and investor decisions [1] Upgrades Summary - Citizens JMP upgraded eBay (EBAY) to Outperform from Market Perform with a price target of $115, citing improved consumer experience and projected mid-single-digit merchandise volume growth by 2026 [2] - JPMorgan upgraded Coinbase (COIN) to Overweight from Neutral with a new price target of $404, increased from $342, highlighting attractive valuation and monetization opportunities in the cryptocurrency sector [2] - Morgan Stanley upgraded Tractor Supply (TSCO) to Equal Weight from Underweight with a price target of $60, up from $50, noting the company is moving past its investment cycle and returning to normalized levels [2] - Keefe Bruyette upgraded AppFolio (APPF) to Outperform from Market Perform with a price target of $311, emphasizing the stock's underperformance and potential revenue growth acceleration above 20% due to new AI and resident services products [2] - UBS upgraded Alliant Energy (LNT) to Buy from Neutral with a price target of $79, increased from $74, driven by load growth, capital expenditure increases, and regulatory alignment [2]

Core Insights - The market began 2025 positively but faced volatility due to tariff and geopolitical risks, with the Fed cutting rates by 25 basis points to 4.00–4.25% in September and signaling two more cuts for the year [1] - Despite inflation and rising unemployment, equities remain near record highs, driven by optimism over rate cuts, AI-driven earnings growth, and hopes for a soft landing [1] - Retail investors face challenges in stock selection amidst these conditions [1] Sales Growth as a Key Metric - Sales growth is preferred over earnings for evaluating stocks, as it reflects actual demand and provides visibility into a company's business model durability [3] - Companies that can grow revenues during economic downturns demonstrate pricing power and competitive advantages [3] - Constant sales growth leads to stronger cash flows, allowing for reinvestment, market expansion, or shareholder returns without excessive debt reliance [5] Stock Selection Criteria - Stocks with 5-Year Historical Sales Growth (%) greater than industry average and Cash Flow over $500 million are prioritized [6] - Additional metrics include P/S Ratio less than industry average, positive % Change in F1 Sales Estimate Revisions, Operating Margin greater than 5%, and Return on Equity (ROE) greater than 5% [7][8][9] Recommended Stocks - **Lamb Weston (LW)**: Expected sales growth rate of 1.3% for fiscal 2026, Zacks Rank 1 [12] - **Universal Health Services (UHS)**: Expected sales growth rate of 8.5% for 2025, Zacks Rank 2 [14] - **FirstEnergy Corp (FE)**: Expected sales growth of 6.6% in 2025, Zacks Rank 2 [14] - **NetEase, Inc. (NTES)**: Expected sales growth of 10.3% for 2025, Zacks Rank 2 [15] - **JPMorgan Chase & Co. (JPM)**: Expected sales growth of 2.1% in 2025, Zacks Rank 2 [16]

PG&E Corporation (NYSE:PCG) is one of the best affordable stocks to buy under $20. Jefferies analyst Julien Dumoulin-Smith lifted the price target on PG&E Corporation (NYSE:PCG) to $21 from $20 on October 22 and assigned a Buy rating to the stock. The firm told investors in a sector preview that it expects a mostly positive Q3 “super cycle” of updates containing messages of “capex up & cost of capital down” from the utilities sector. C3.ai (AI) and Eletrobras Team Up to Boost Power Grid Reliability With A ...

Core Insights - FirstEnergy reported a significant increase in contracted and potential data centers, with figures reaching 3.8 GW and 11.7 GW, representing a 30% and 92% increase since February [2] - The company experienced a 0.8% increase in weather-adjusted sales, with residential sales up 1.4%, commercial sales up 0.7%, and industrial sales up 0.3% [3] - FirstEnergy's net income rose to $441 million, a 5.3% increase from the previous year, partly due to a $225 million rate hike in Pennsylvania [5] Financial Performance - FirstEnergy's capital expenditure (CapEx) for 2025 is projected at $5.5 billion, reflecting a 10% increase from earlier estimates [4] - The company anticipates electric sales growth of 1% in the first nine months of the year compared to the same period in 2024, with expectations for more significant increases in industrial load starting in Q4 [8] Data Center Development - The forecast for data centers indicates a peak load increase of 15 GW, or 45%, from 33.5 GW this year to 48.5 GW by 2035 [6] - FirstEnergy plans to hold data center developers accountable for incremental investments to protect existing customers [7] Transmission Infrastructure - FirstEnergy's capital expenditure plan for 2025 to 2029 totals $28 billion, with approximately $14 billion allocated for transmission [11] - The company expects a 30% increase in transmission spending in its upcoming four-year spending plan, which will be released early next year [11][12]

Core Insights - The article emphasizes that utility companies are evolving into significant players in the AI sector, offering attractive dividend yields of up to 10.4% as demand for AI infrastructure grows [2][22]. Utility Sector Dynamics - Texas is experiencing a surge in power demand, projected to increase by 62% by 2030, with Oncor indicating that current interconnection requests exceed double the peak demand [3][4]. - Portland General Electric (PGE) is leveraging AI technology to enhance grid flexibility, allowing for quicker interconnections for data centers, which positions it for growth despite being a traditional utility [5][6]. Investment Opportunities - Edison International (EIX) offers a nearly 6% yield and a low forward P/E ratio of 9, indicating it may be undervalued despite its known wildfire risks and litigation history [6][7]. - Brookfield Infrastructure Partners (BIP) provides a 4.9% yield and has a diverse asset base that includes significant infrastructure for electricity and data centers, benefiting from the AI megatrend [11][12]. Fund Performance - The MEGI NYLI CBRE Global Infrastructure Megatrends Term Fund offers a 10.1% distribution rate, with a substantial portion of its assets allocated to utility companies, although it also includes exposure to other sectors [17][19]. - The Gabelli Utility Trust (GUT) has a distribution rate of 10.4% and focuses heavily on utility stocks, making it a competitive option for investors seeking utility exposure [20][21].

Company Overview - Duke Energy Corporation (DUK) has a market cap of $100.3 billion and is headquartered in Charlotte, North Carolina, serving approximately 8 million customers across six states in the Southeast and Midwest [1] Earnings Expectations - The company is expected to announce its fiscal Q3 2025 earnings results on Nov. 7, with analysts predicting a profit of $1.73 per share, reflecting a 6.8% increase from $1.62 in the same quarter last year [2] - For fiscal 2025, analysts forecast an EPS of $6.33, which is a 7.3% increase from $5.90 in fiscal 2024 [3] Stock Performance - Duke Energy shares have increased by 5.6% over the past 52 weeks, underperforming compared to the S&P 500 Index's 16.2% return and the Utilities Select Sector SPDR Fund's 10% gain during the same period [4] Dividend Announcements - On Oct. 14, Duke Energy announced a quarterly cash dividend of $1.065 per common share, payable on Dec. 16, 2025, to shareholders of record on Nov. 14, highlighting its stable cash flow and commitment to consistent income for shareholders [5] Analyst Ratings - The consensus view on DUK stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 24 analysts, 13 recommend a "Strong Buy," one a "Moderate Buy," and ten suggest "Holds." The mean price target of $136.72 indicates a potential upside of 7.4% from current market prices [6]

Core Viewpoint - PSEG (PEG) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly influenced by institutional investors [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - PSEG's earnings estimates have been rising, reflecting an improvement in the company's underlying business, which is expected to drive the stock price higher [5][10]. - The Zacks Consensus Estimate for PSEG indicates an expected earnings of $4.02 per share for the fiscal year ending December 2025, with a slight increase of 0.4% in estimates over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - PSEG's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - The energy sector is experiencing significant demand growth driven by data centers and electrification, necessitating increased investment in transmission infrastructure [2][3] - First Energy plans to increase its capital expenditure (capex) for transmission by approximately 30% over the next five years, indicating a strong commitment to enhancing the transmission grid [3] - The company is actively addressing the labor force needs for infrastructure development through apprenticeship programs and hiring experienced personnel [5] Investment Opportunities - The investment in a robust transmission grid is seen as a critical opportunity for investors, particularly in light of the growing demand from AI and data center operations [3] - First Energy is ensuring that hyperscalers and data center developers commit to covering the costs of infrastructure investments, which mitigates the risk of overbuilding [7] Consumer Impact - There is a notable increase in customer bills, with generation costs accounting for 85% of the year-over-year increase in four out of five states where First Energy operates as a wire-only company [9] - In the state where First Energy is fully integrated, customer rates remained flat year-on-year, highlighting the impact of generation costs on utility bills [9] - The company is working with regulators and stakeholders to mitigate the impact of rising generation costs on consumers [10]

Core Insights - CenterPoint Energy, Inc. (CNP) reported third-quarter 2025 adjusted earnings of 50 cents per share, exceeding the Zacks Consensus Estimate of 46 cents by 8.7% and reflecting a 61.3% increase from the previous year's figure of 31 cents [1][8] - The company's GAAP earnings were 45 cents per share, marking a 50% increase from the prior-year quarter's figure of 30 cents [1] CNP's Revenues - CNP generated revenues of $1.99 billion, surpassing the Zacks Consensus Estimate by 0.5% and showing a 7.1% increase compared to the year-ago quarter's revenue of $1.86 billion [2][8] CNP's Operational Results - Total expenses for the third quarter increased by 3.8% year over year to $1.49 billion [3] - The company reported an operating income of $502 million, up from $424 million in the prior year [3][8] - Interest expenses and other finance charges totaled $238 million, reflecting a 24.6% increase from $191 million recorded in the previous year [3] CNP's Financial Condition - As of September 30, 2025, CenterPoint Energy had cash and cash equivalents of $37 million, an increase from $24 million as of December 31, 2024 [4] - The total long-term debt was $19.40 billion, down from $20.40 billion as of December 31, 2024 [4] - Net cash flow from operating activities amounted to $1.71 billion, compared to $1.25 billion in the year-ago period [4] CNP's Capital Expenditure - The total capital expenditure was $3.39 billion as of September 30, 2025, compared to $2.50 billion in the prior year [5] CNP's 2025 Guidance - CenterPoint Energy expects to generate adjusted earnings per share in the range of $1.75-$1.77, with the Zacks Consensus Estimate for 2025 earnings at $1.76 per share, aligning with the midpoint of the company's guidance [6] CNP's Zacks Rank - CNP currently holds a Zacks Rank 2 (Buy) [7]

Core Insights - FirstEnergy Corp. reported third-quarter 2025 operating earnings of 83 cents per share, exceeding the Zacks Consensus Estimate of 76 cents by 9.2% [1] - The year-over-year increase in core earnings was attributed to new base rates in Pennsylvania and growth in transmission rate base, partially offset by higher planned operating expenses [2] Financial Performance - Total operating revenues reached $4.14 billion, surpassing the Zacks Consensus Estimate of $3.91 billion by 5.8%, and increased 11.2% from $3.72 billion in the previous year [3] - Operating expenses totaled $3.3 billion, up 10.5% from $3 billion in the prior year, while operating income rose to $830 million, a 14.2% increase from $727 million [5] - Interest expense was reported at $312 million, reflecting a 13% increase from $276 million in the previous year [5] Segment Performance - Distribution segment revenues totaled $2.02 billion, up 11.2% year-over-year [4] - Integrated segment revenues amounted to $1.65 billion, a 13.8% increase from $1.45 billion in the prior year [4] - Stand-Alone Transmission segment revenues reached $488 million, up 2.7% from the previous year [4] Future Guidance - FirstEnergy narrowed its 2025 core earnings per share guidance to a range of $2.50-$2.56, with the Zacks Consensus Estimate at $2.53, aligning with the midpoint of the guidance [6] - The company anticipates a long-term EPS growth rate of 6-8% and has a capital investment plan of $28 billion for the 2025-2029 period [6] - Capital investment for 2025 was increased to $5.5 billion from $5 billion, with over half allocated to strengthening Transmission operations [7][9]