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Is Algonquin Power & Utilities (AQN) Outperforming Other Utilities Stocks This Year?
ZACKSยท 2025-06-05 14:45
Group 1 - Algonquin Power & Utilities (AQN) is currently performing well in the Utilities sector, with a year-to-date return of approximately 33%, significantly outperforming the sector average of 6.9% [4] - The Zacks Rank for AQN is 2 (Buy), indicating a positive outlook based on earnings estimate revisions and improving earnings outlooks [3][4] - The Zacks Consensus Estimate for AQN's full-year earnings has increased by 1.1% over the past quarter, reflecting improved analyst sentiment [4] Group 2 - AQN is part of the Utility - Electric Power industry, which consists of 60 companies and currently ranks 68 in the Zacks Industry Rank, with an average gain of 7% year-to-date [6] - MYR Group (MYRG) is another Utilities stock that has outperformed the sector, with a year-to-date return of 7.7% and a Zacks Rank of 2 (Buy) [5][6] - The Electric Construction industry, to which MYR Group belongs, is currently ranked 3 and has seen a year-to-date increase of 7.7% [6]
FirstEnergy Builds Third Utility-Scale Solar Site in West Virginia
ZACKSยท 2025-06-03 17:06
Core Insights - FirstEnergy Corporation (FE) has completed its third utility-scale solar site in West Virginia, contributing to the state's electricity needs and supporting American manufacturing [1][10] - The new solar facility at Marlowe site produces up to 5.75 megawatts (MW) of renewable power, enough to power hundreds of homes [2][10] - The company's solar projects are part of a broader initiative to meet the growing demand for renewable energy and comply with state legislation allowing electric companies to own solar generation plants [4][10] Project Highlights - The Marlowe solar site features over 17,000 solar panels and occupies approximately 36 acres of land [2][3] - FirstEnergy's West Virginia solar program aligns with a 2020 bill permitting electric companies to operate up to 200 MW of solar generation plants [4] - The company plans a total of five solar projects that will generate 50 MW of solar energy and create over 87,000 solar renewable energy credits (SRECs) [5][6][10] Clean Energy Commitment - Mon Power and Potomac Edison have already initiated solar projects, including the Rivesville solar site (5.5 MW) and the Fort Martin Power Station (18.9 MW) [5] - The company's commitment to renewable energy is further demonstrated through its 'Energize365' program, which includes planned investments of $28 billion from 2025 to 2029 for grid modernization [7][8] Industry Context - The U.S. Energy Information Administration (EIA) projects that renewable energy sources will account for 25% of U.S. electricity generation by 2025 [11] - Other electric power companies, such as Duke Energy, Alliant Energy, and Entergy Corporation, are also expanding their solar energy capabilities, indicating a growing trend in the industry [12][13][14] Stock Performance - Over the past three months, FE's stock has increased by 4.8%, outperforming the industry average growth of 3.1% [17]
Is the Options Market Predicting a Spike in Ameren Stock?
ZACKSยท 2025-06-03 13:50
Group 1 - The options market indicates significant implied volatility for Ameren Corporation, particularly for the June 20, 2025 $75.00 Call option, suggesting that investors expect a substantial price movement [1] - Implied volatility reflects market expectations of future stock movement, often indicating potential upcoming events that could lead to significant price changes [2] - Ameren currently holds a Zacks Rank 3 (Hold) in the Utility - Electric Power industry, which is in the top 29% of the Zacks Industry Rank, with recent analyst activity showing an increase in earnings estimates for the current quarter from 84 cents to $1.03 per share [3] Group 2 - The high implied volatility for Ameren shares may present trading opportunities, as options traders often seek to sell premium on such options, aiming for the underlying stock to not move as much as anticipated [4]
Why CenterPoint Energy (CNP) is a Great Dividend Stock Right Now
ZACKSยท 2025-05-30 16:51
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, ...
PPL vs. AEE: Which Utility Stock Offers More Growth Potential?
ZACKSยท 2025-05-30 16:46
The Zacks Utility -Electric Power industry offers a compelling case for stable, long-term income due to its regulated framework. These regulations enable utilities to recover costs and generate consistent returns, helping to minimize earnings volatility. With electricity demand remaining steady through various economic conditions and the sector offering attractive dividend yields, utilities represent a dependable, defensive choice for income-oriented investors.In the United States, electric utilities are mo ...
NextEra Energy vs. Duke Energy: Which Utility Stock Shines Brighter?
ZACKSยท 2025-05-29 14:55
Industry Overview - The Zacks Utility - Electric Power industry is characterized by a regulated structure that supports stable, long-term income, allowing utilities to recover costs and earn consistent returns, which reduces earnings volatility [1] - The industry is evolving due to a shift toward clean energy, with significant investments in grid modernization, renewable integration, and electrification, reshaping the sector [2] Company Profiles NextEra Energy - NextEra Energy is a leading U.S. utility known for its investments in renewable energy, including wind, solar, and battery storage, driving the clean energy transition [3] - The company operates one of the largest portfolios of wind and solar projects globally and has strong financials and a history of innovation [3] - NextEra Energy's earnings per share (EPS) estimate for 2025 has increased by 0.27% over the past 60 days, with a long-term earnings growth projection of 7.72% [6] Duke Energy - Duke Energy is one of the largest U.S. utilities, aiming to cut carbon emissions by 50% by 2030 and achieve net-zero emissions by 2050, with plans to double renewable capacity by 2030 [4] - The company is investing in modern infrastructure and clean technologies, offering stable, regulated returns with long-term growth potential [4] - Duke Energy's EPS estimates for 2025 remained unchanged, while the 2026 estimates decreased by 0.15%, with a long-term earnings growth projection of 6.33% [8] Financial Metrics - NextEra Energy's current dividend yield is 3.33%, while Duke Energy's is 3.59%, both exceeding the industry average of 3.17% [11] - Return on Equity (ROE) for NextEra Energy is 12.06%, outperforming Duke Energy's ROE of 9.88% and the industry's ROE of 10.13% [12] - NextEra Energy's debt-to-capital ratio is 56.98%, compared to Duke Energy's 60.61%, with the industry's average at 54.57% [14] Valuation and Capital Expenditure - NextEra Energy is trading at a Price/Earnings Forward 12-month ratio of 17.93X, slightly cheaper than Duke Energy's 17.96X, while both are above the industry average of 15.37X [15] - NextEra Energy plans to invest nearly $72.6 billion from 2025 to 2029, while Duke Energy plans to invest $46.6 billion from 2025 to 2027, focusing on infrastructure and clean electricity generation [17] Conclusion - NextEra Energy has a marginal edge over Duke Energy due to its positive earnings estimate movement, better ROE, and cheaper valuation, despite both companies holding a Zacks Rank 3 (Hold) [18]
Are Utilities Stocks Lagging DTE Energy (DTE) This Year?
ZACKSยท 2025-05-28 14:46
Company Overview - DTE Energy is one of 106 companies in the Utilities group, which currently ranks 2 within the Zacks Sector Rank [2] - DTE Energy has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Performance Metrics - DTE Energy has returned approximately 13.6% year-to-date, outperforming the average return of 8.1% for Utilities companies [4] - The Zacks Consensus Estimate for DTE's full-year earnings has increased by 0.6% over the past three months, reflecting improved analyst sentiment [3] Industry Context - DTE Energy is part of the Utility - Electric Power industry, which includes 60 stocks and currently ranks 72 in the Zacks Industry Rank [6] - The average return for the Utility - Electric Power industry so far this year is 8.1%, indicating that DTE is performing better than its industry peers [6] Competitive Landscape - National Grid (NGG) is another Utilities stock that has outperformed the sector with a year-to-date return of 25.7% [4] - National Grid also holds a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 2.9% over the past three months [5]
Are Utilities Stocks Lagging Fortis (FTS) This Year?
ZACKSยท 2025-05-27 14:45
For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Fortis (FTS) been one of those stocks this year? 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.Fortis is a member of the Utilities sector. This group includes 106 individual stocks and currently holds a Zacks Sector Rank of #2. The Zacks Sector Rank includes 16 different groups a ...
Here's Why Hold Strategy Is Apt for Southern Company Stock Now
ZACKSยท 2025-05-22 12:32
Southern Company (SO) , a prominent entity in the U.S. utilities sector, plays a crucial role in the generation, transmission and distribution of electricity. Through its subsidiaries, the company provides electricity to millions of customers across Georgia, Alabama and Tennessee. Its diverse energy portfolio includes power generation from nuclear, coal, hydro, solar, wind and advanced battery storage.Focused on embracing the future of energy, Southern is investing heavily in natural gas, renewable resource ...
Why Exelon (EXC) is a Great Dividend Stock Right Now
ZACKSยท 2025-05-21 16:51
Group 1 - The primary focus of income investors is generating consistent cash flow from liquid investments, including stocks, bonds, and dividends [1][2] - Dividends are a significant component of long-term returns, often contributing over one-third of total returns [2] - Exelon (EXC), a utility company based in Chicago, has experienced a stock price increase of 17.59% year-to-date and currently pays a dividend of $0.8 per share, yielding 3.62% [3] Group 2 - Exelon's annualized dividend of $1.60 represents a 5.3% increase from the previous year, with an average annual increase of 0.01% over the last five years [4] - The company's current payout ratio is 58%, indicating that it pays out 58% of its trailing 12-month earnings per share as dividends [4] - The Zacks Consensus Estimate projects Exelon's earnings to grow to $2.70 per share in 2025, reflecting an 8% increase from the previous year [5] Group 3 - High-yielding stocks may face challenges during periods of rising interest rates, but Exelon is considered a compelling investment opportunity due to its strong dividend profile [7] - Exelon holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [7]