Economic Overview - Consumer confidence index declined to 93 in June, a 5.4-point drop from May's 98.4, and significantly lower than the expected rise to 100 [4][10] - Concerns over job availability and uncertainty regarding President Trump's tariffs contributed to the decline in consumer confidence [5][10] - The labor market differential fell to 11.1 in June from 12.7 in May, marking its lowest point in four years [5] Investment Recommendations - It is advisable to invest in safe-haven defensive stocks from the utility and consumer staples sectors, including Atmos Energy Corporation (ATO), NiSource Inc. (NI), Fortis, Inc. (FTS), Ingredion Incorporated (INGR), and Altria Group, Inc. (MO) [2][10] - These stocks are categorized as low-beta (beta greater than 0 but less than 1) and are expected to provide high dividend yields along with favorable Zacks Ranks [3][10] Company Profiles Atmos Energy Corporation (ATO) - Engaged in regulated natural gas distribution and storage, serving approximately 3.3 million customers across eight states [9] - Expected earnings growth rate of 6% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.22% [11] NiSource Inc. (NI) - Provides natural gas and electricity to around 3.7 million customers in six states, with one of the largest natural gas distribution networks in the U.S. [12] - Expected earnings growth rate of 7.4% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.76% [13] Fortis, Inc. (FTS) - Operates in the electric and gas utility business, primarily in Canada, the U.S., and the Caribbean [14] - Expected earnings growth rate of 3.4% for the current year, with a Zacks Rank 2 and a current dividend yield of 3.76% [15] Ingredion Incorporated (INGR) - Specializes in nature-based sweeteners, starches, and nutrition ingredients, serving various sectors [16] - Expected earnings growth rate of 6.1% for the current year, with a Zacks Rank 2 and a current dividend yield of 2.33% [17] Altria Group, Inc. (MO) - Evolving beyond traditional cigarettes into the smokeless category due to rising health consciousness and regulatory pressures [18] - Expected earnings growth rate of 4.9% for the current year, with a Zacks Rank 2 and a current dividend yield of 6.81% [19]

Core Insights - Vistra Corp.'s disciplined hedging strategy is fundamental to its financial strength and operational stability, with nearly 100% of anticipated 2025 generation volumes and around 90% for 2026 hedged as of May 2, 2025 [1][8] - The hedging approach allows Vistra to secure steady revenues and predictable margins, minimizing downside risks and supporting consistent financial performance in a volatile market [2][4] - The company's hedging program provides short-term earnings visibility while allowing for upside exposure to potential market strength beyond the hedge horizon [3][4] Financial Performance - The Zacks Consensus Estimate for Vistra's earnings per share indicates an increase of 2.81% for 2025 and 2.84% for 2026 over the past 60 days [7] - Vistra's trailing 12-month return on equity (ROE) stands at 87.33%, significantly higher than the industry average of 10.09%, indicating effective utilization of shareholders' funds [8][11] Market Position - Vistra's shares have increased by 108.2% over the past year, outperforming the Zacks Utility-Electric Power industry's growth of 18.3%, attributed to strong retail and commercial operations [11]

Industry Overview - Natural gas distribution companies transport natural gas from production regions to consumers across the U.S., utilizing extensive underground pipeline networks [1] - The industry is transitioning towards cleaner energy, with natural gas serving as a critical bridge fuel for decarbonization goals [1] - The U.S. has 3,353 trillion cubic feet of natural gas and operates a 2.6-million-mile pipeline network, but faces challenges from aging infrastructure and competition from alternative energy sources [3] Future Outlook - U.S. Energy Information Administration (EIA) projects an increase in domestic dry natural gas production in 2025, particularly in the Permian and Eagle Ford regions [4] - LNG export volumes are expected to rise by 22.7% year-over-year in 2025 and 9.6% in 2026, highlighting the importance of gas pipelines for transportation to export terminals [4] - Interest rates have declined by 100 basis points, benefiting capital-intensive utilities planning infrastructure upgrades [5] Investment Opportunities - Natural gas utilities are investing approximately $37 billion annually to enhance the reliability of distribution and transmission systems, indicating long-term growth potential [6] - The Zacks Utility Gas Distribution industry ranks 52, placing it in the top 21% of the 244 Zacks industries, reflecting strong near-term prospects [7][8] Performance Metrics - The Gas Distribution industry has outperformed the S&P 500 and the Utility sector over the past year, with an 18.1% gain compared to 10.8% for the S&P 500 [9] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 11.12X, lower than the S&P 500's 16.96X and the sector's 15.09X, suggesting a potential valuation opportunity [12] Company Highlights - **Atmos Energy Corporation (ATO)**: Plans to invest $3.7 billion in fiscal 2025, with a current dividend yield of 2.23% and long-term earnings growth projected at 7.19% [18][19] - **UGI Corporation**: Expected to invest $3.7-$4.1 billion through fiscal 2027, with a dividend yield of 4.12% and long-term earnings growth of 5.2% [22][23] - **ONE Gas Inc. (OGS)**: Aims to invest $4 billion through 2029, with a dividend yield of 3.64% and long-term earnings growth of 5.6% [26][27] - **Northwest Natural Holding Company (NWN)**: Plans to invest $2.5-$2.7 billion through 2030, with a dividend yield of 3.64% [30][31]

Have you been paying attention to shares of UGI (UGI) ? Shares have been on the move with the stock up 1% over the past month. The stock hit a new 52-week high of $36.74 in the previous session. UGI has gained 29.3% since the start of the year compared to the 8.3% gain for the Zacks Utilities sector and the 3% return for the Zacks Utility - Gas Distribution industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate ...

Group 1: Stock Performance - NRG Energy's stock closed at $153.68, with a +1.07% change from the previous day's closing price, underperforming the S&P 500's daily gain of 1.11% [1] - Over the past month, NRG's shares have depreciated by 3.66%, while the Utilities sector gained 0.34% and the S&P 500 gained 3.92% [1] Group 2: Earnings Projections - NRG Energy's upcoming earnings per share (EPS) are projected to be $1.07, reflecting a 27.7% decrease from the same quarter last year [2] - The consensus estimate for NRG's revenue is $6.31 billion, indicating a 5.26% decline compared to the corresponding quarter of the prior year [2] Group 3: Full-Year Estimates - The full-year Zacks Consensus Estimates for NRG Energy are earnings of $7.77 per share and revenue of $28.87 billion, representing year-over-year changes of +17.02% and +2.64%, respectively [3] - Changes in analyst estimates for NRG Energy are crucial as they indicate near-term business trends and analyst optimism regarding profitability [3] Group 4: Valuation Metrics - NRG Energy is currently traded at a Forward P/E ratio of 19.58, which is higher than the industry average Forward P/E of 17.99, suggesting a premium valuation [6] - The company holds a PEG ratio of 1.21, compared to the Utility - Electric Power industry's average PEG ratio of 2.64 [7] Group 5: Industry Ranking - The Utility - Electric Power industry, part of the Utilities sector, has a Zacks Industry Rank of 84, placing it within the top 35% of over 250 industries [7] - The Zacks Industry Rank measures the strength of individual industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Company Overview - Exelon (EXC) is headquartered in Chicago and operates in the Utilities sector, with a stock price change of 13.18% since the beginning of the year [3]. Dividend Information - Exelon currently pays a dividend of $0.4 per share, resulting in a dividend yield of 3.76%, which is higher than the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.62% [3]. - The company's annualized dividend of $1.60 has increased by 5.3% from the previous year, with three dividend increases over the last five years, averaging an annual increase of 0.01% [4]. Earnings Growth - The Zacks Consensus Estimate for Exelon's earnings in 2025 is $2.70 per share, indicating a year-over-year earnings growth rate of 8% [5]. Investment Appeal - Exelon is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7].

Key Takeaways SWX's EPS estimate for 2025 rose 5.1% to $3.72, with long-term growth projected at 9.9%. Southwest Gas plans $4.3B in capital investments from 2025-2029 to support expansion and upgrades. SWX added 40,000 new meter sets in 12 months, with 1.4% annual customer growth expected through 2029.Southwest Gas (SWX) focuses on consistent investments to strengthen its infrastructure, which has played a critical role in expanding the company's operations. Southwest Gas is also gaining from consistent c ...

Core Viewpoint - CenterPoint Energy Inc. (CNP) is positioned as a strong investment option in the Zacks Utility Electric Power industry due to its consistent infrastructure investments and expanding operations [1] Growth Projection - The Zacks Consensus Estimate for CNP's 2026 earnings per share (EPS) has increased by 0.5% to $1.88 over the past 60 days [2] - The revenue estimate for CNP in 2025 is projected at $9.05 billion, reflecting a growth of 4.7% from the reported figure in 2024 [2] - The company's long-term earnings growth rate is estimated at 7.8% over the next three to five years [2] Dividend History - CNP has been consistently increasing shareholder value through dividends, currently paying a quarterly dividend of 22 cents per share, leading to an annualized dividend of 88 cents [3] - The current dividend yield stands at 2.48%, outperforming the Zacks S&P 500 Composite average of 1.24% [3] - In the first quarter of 2025, CNP paid $143 million in dividends, up from $126 million in the same period the previous year [3] Solvency - CNP's times interest earned (TIE) ratio at the end of the first quarter of 2025 was 2.3, indicating the company can comfortably meet its interest payment obligations in the near term [4] Strategic Investment Framework - CNP plans to invest $48.5 billion in capital expenditures over the next 10 years, with a target of $4.8 billion in 2025 [5] - These investments are aimed at enhancing customer dependability and providing safe, resilient energy [5] Renewable Energy and EV Expansion - As part of its 10-year capital expenditure strategy, CNP intends to invest over $3 billion in renewable energy generation and electric vehicle (EV) expansion, targeting around 1,000 megawatts of power from wind and solar by 2026 [6][8] - The company is also focusing on developing a smarter, cleaner ecosystem for EV drivers and fleet operators, including investments in off-road electrification [7] Stock Performance - CNP stock has increased by 10.8% over the past six months, outperforming the industry's growth of 5.7% [10]

V i e w p o i n t | 12 Jun 2025 00:28:47 ET │ 22 pages MENA Natural Resources & ClimateTech GCC Set To Become Global AI Hub CITI'S TAKE Building on our global data center outlook, we explore the emerging opportunity in the Middle East. In our view, advantaged energy costs – and low cost of capital – means that the GCC can grow faster than global peers, taking a potential 5% market share this decade and with significant opportunity to scale beyond. We upgrade ADNOC Gas to Buy (4 AED TP) as our higher gas-to- ...

Core Insights - NextEra Energy's shares are trading at a premium with a price-to-earnings (P/E) ratio of 18.86X, higher than the industry average of 15.27X and the broader utilities sector average of 16.15X [1][6] - The company is benefiting from a well-structured investment plan, strategic acquisitions, a growing customer base, and improving economic conditions in its service regions [3][9] Financial Performance - NextEra Energy's earnings are projected to grow at an annual rate of 6-8% through 2027, supported by renewable energy and efficiency initiatives [6] - The company aims to increase its dividend by 10% annually through 2026, starting from a base of $2.27 per share, which results in a dividend yield of 3.03% [23] Customer Base and Market Position - Approximately 89% of NextEra Energy's customer base consists of residential users, with the remaining 11% being commercial [10] - The subsidiary Florida Power & Light Company offers residential electricity rates below the national average, enhancing customer appeal and market positioning [9] Renewable Energy Investments - NextEra Energy Resources plans to add 36.5-46.5 GW of new renewable capacity between 2024 and 2027, with a contracted renewables backlog of nearly 28 GW [11] - The company has benefited from technological advances that have reduced the cost of renewable energy, allowing it to secure long-term power purchase agreements for stable cash flows [12] Operational Efficiency - NextEra Energy has one of the lowest cost structures in the utility sector, supported by operational efficiencies and economies of scale in renewables [13] - The company plans to invest over $72.6 billion through 2029 to further strengthen its operations [13] Earnings Performance - NextEra Energy has exceeded earnings per share expectations for four consecutive quarters, with an average earnings surprise of 3.58% [14] - The company 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% for 2025 and 7.95% for 2026 [16] Return on Equity - NextEra Energy's trailing 12-month return on equity (ROE) is 12.06%, outperforming the industry average of 10.13% [20] Summary - NextEra Energy maintains steady performance driven by growing demand for clean energy, operational efficiency, and strategic investments, making it a strong player in the utility sector [25]