Investors interested in Utility - Electric Power stocks are likely familiar with PG&E (PCG) and WEC Energy Group (WEC) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision t ...

Key Takeaways PPL's shares trade at 17.4X forward P/E, above both its industry and sector averages.Rising data center demand in Pennsylvania and Kentucky supports growth.PPL plans $20B in upgrades through 2028 and targets $175M in O&M cost cuts by 2026.PPL Corporation’s (PPL) shares are trading at a forward 12-month price/earnings (P/E) ratio of 17.4X, a premium compared with the Zacks Utility - Electric Power industry’s average of 14.79X. PPL’s current valuation is higher than the broader Zacks Utilities s ...

Key Takeaways NEE's shares trade at a 20.56X forward P/E, above the utility industry average of 14.75X. NEE plans $74B in upgrades and clean-energy projects to expand capacity through 2034.NEE's 2025-2026 EPS estimates show 7% Y/Y growth, supported by rising demand and capital efficiency.NextEra Energy’s (NEE) shares are trading at a forward 12-month price/earnings (P/E) ratio of 20.56X, a premium compared with the Zacks Utility - Electric Power industry’s average of 14.75X. NEE’s current valuation is highe ...

Core Viewpoint - Duke Energy (DUK) is experiencing growth in its renewable business and strategic investment plans, although its stock performance has lagged behind the industry average [1][20]. Group 1: Stock Performance - DUK shares have increased by 5.7% over the past six months, while the Zacks Utility-Electric Power industry has grown by 11.9% [1]. - Other industry players, NextEra Energy (NEE) and The Southern Company (SO), have seen stock gains of 23% and 1.3%, respectively, during the same period [2]. Group 2: Factors Driving Performance - Duke Energy is enhancing its energy mix through investments in modern technology and infrastructure, combining renewable resources with conventional sources [4]. - The company plans to reduce coal generation to under 5% by 2030 and eliminate it entirely by 2035, retiring 58 coal units totaling 8,000 megawatts (MW) [5]. - Duke Energy aims for net-zero methane emissions by 2030 and net-zero carbon emissions by 2050, with plans to add over 7,500 MW of new, lower-emission natural gas generation by 2030 [5]. Group 3: Investment Plans - The company plans to invest $190-$200 billion over the next decade to modernize infrastructure and enhance its renewable energy portfolio [8][9]. - Duke Energy is expanding its nuclear capabilities, partnering with GE Hitachi to advance small modular reactor technology as part of its clean energy strategy [10][20]. Group 4: Earnings Estimates and Performance - The Zacks Consensus Estimate for DUK's earnings per share (EPS) indicates a year-over-year increase of 7.29% for 2025 and 6.07% for 2026 [11]. - Duke Energy has consistently beaten earnings estimates over the past four quarters, with an average surprise of 5.72% [13]. Group 5: Dividend and Financial Metrics - Duke Energy's annual dividend is currently $4.26 per share, with a targeted payout ratio of 60-70% [15]. - The company's trailing 12-month return on equity (ROE) is 9.98%, higher than the industry average of 9.64% [17]. - DUK is trading at a forward 12-month P/E ratio of 18.55, which is a premium compared to the industry's 15.76 [18].

Core Viewpoint - American Electric Power (AEP) reported mixed results in its Q3 2025 earnings, with revenues increasing but operating earnings per share (EPS) missing estimates, leading to questions about future performance [2][3][6]. Financial Performance - AEP's Q3 2025 operating EPS was $1.80, missing the Zacks Consensus Estimate of $1.81 by 0.6%, and declined 2.7% from $1.85 in the same quarter last year [2]. - Total revenues for AEP reached $6.01 billion, a 10.9% increase from $5.42 billion in the year-ago quarter, and exceeded the Zacks Consensus Estimate of $5.65 billion by 6.5% [3]. Segmental Performance - Vertically Integrated Utility Operations reported operating earnings of $573.5 million, slightly up from $572.4 million year-over-year [4]. - Transmission & Distribution Utilities saw operating earnings rise to $259.1 million from $245.2 million in the previous year [4]. - AEP Transmission Holdco's operating earnings decreased to $199.9 million from $214.7 million year-over-year [4]. - Generation and Marketing segment's operating earnings fell to $48.4 million from $99.2 million in the prior year [5]. - The "All Other" segment reported an operating loss of $118 million, which was an improvement from a loss of $146.1 million in the year-ago quarter [5]. Guidance and Estimates - AEP reaffirmed its 2025 operating earnings guidance, expecting to generate earnings in the range of $5.75-$5.95 per share, with the Zacks Consensus Estimate at $5.90 per share [6]. - Following the earnings release, there has been an upward trend in estimates for AEP [7]. Stock Performance and Outlook - AEP has an average Growth Score of C and a Momentum Score of A, with a value grade of C, placing it in the middle 20% for value investors [8]. - The stock has a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [9]. Industry Comparison - AEP is part of the Zacks Utility - Electric Power industry, where PG&E (PCG) has also shown a 0.7% gain over the past month, reporting revenues of $6.25 billion, a year-over-year increase of 5.2% [10]. - PG&E's EPS for the last quarter was $0.50, compared to $0.37 a year ago, and it is expected to post earnings of $0.39 per share for the current quarter, reflecting a 25.8% year-over-year change [11].

Core Insights - The article compares PG&E (PCG) and NextEra Energy (NEE) to determine which stock is more attractive to value investors [1][3] Valuation Metrics - PG&E has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to NextEra Energy, which has a Zacks Rank of 3 (Hold) [3] - PG&E's forward P/E ratio is 10.67, significantly lower than NextEra Energy's forward P/E of 23.25, suggesting that PG&E may be undervalued [5] - The PEG ratio for PG&E is 0.67, while NextEra Energy's PEG ratio is 2.88, indicating that PG&E has a better valuation relative to its expected earnings growth [5] - PG&E's P/B ratio is 1.15, compared to NextEra Energy's P/B of 2.76, further supporting the notion that PG&E is undervalued [6] Value Grades - PG&E has a Value grade of A, while NextEra Energy has a Value grade of D, highlighting PG&E's superior valuation metrics and earnings outlook [6]

Core Insights - Edison International's third-quarter 2025 adjusted earnings were $2.34 per share, exceeding the Zacks Consensus Estimate of $2.16 by 8.3% and reflecting a 55% increase from $1.51 in the same quarter last year [3] - The company's total operating revenues for the third quarter reached $5.75 billion, surpassing the Zacks Consensus Estimate of $5.61 billion by 2.6% and showing a year-over-year increase of 10.6% from $5.2 billion [4] Financial Performance - Total operating expenses rose by 2.7% year over year to $4.32 billion, with purchased power and fuel costs decreasing by 10.4% and depreciation and amortization expenses increasing by 21.4% [5] - Operating income for the quarter was $1.43 billion, compared to $0.99 billion in the prior-year period [6] Segment Results - Southern California Edison reported adjusted earnings of $2.58 per share, up from $1.74 in the year-ago quarter, attributed to higher revenues from the 2025 GRC final decision [7] - The Edison International Parent and Other segment incurred an adjusted loss of 24 cents per share, slightly worse than the loss of 23 cents in the previous year due to increased interest expenses [7] Financial Update - As of September 30, 2025, cash and cash equivalents were $364 million, up from $193 million at the end of 2024 [8] - Long-term debt increased to $34.48 billion from $33.53 billion at the end of 2024, while net cash flow from operating activities for the first nine months of 2025 was $4.23 billion, compared to $3.84 billion in the prior-year period [8] Capital Expenditures - Total capital expenditures for the company were $4.62 billion as of September 30, 2025, higher than $4.21 billion in the same period last year [9] 2025 Guidance - The company has narrowed its 2025 earnings outlook to a range of $5.95-$6.20 per share, compared to the previous guidance of $5.94-$6.34, with the Zacks Consensus Estimate currently at $6.10 per share [11] Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 22.06% recently [12] VGM Scores - Edison International holds a Growth Score of B, a Momentum Score of D, and a Value Score of A, resulting in an aggregate VGM Score of A [13] Industry Performance - Edison International is part of the Zacks Utility - Electric Power industry, where another player, FirstEnergy, reported revenues of $4.15 billion, reflecting an 11.2% year-over-year increase [15]

Industry Overview - The Zacks Utility - Electric Power industry presents a strong long-term investment case due to its capital-intensive, domestically focused, and highly regulated business model, which ensures steady revenue visibility and predictable earnings [1] - The industry is transitioning towards cleaner energy sources driven by rising demand from AI-based data centers, reshoring of industries, and increased electric vehicle usage, with utilities retiring older fossil-fuel units and expanding renewables [2] Company Focus: PPL Corporation - PPL Corporation is a fully regulated utility focused on infrastructure upgrades and clean energy expansion, generating stable cash flows and reliable dividends [3] - The company's regulated operations provide predictable revenues, enhancing financial stability and supporting consistent capital returns to shareholders [4] - PPL plans to invest nearly $20 billion from 2025 to 2028 to strengthen its infrastructure and increase clean electricity generation assets [23] Company Focus: Ameren Corporation - Ameren Corporation operates as a regulated electric and natural gas utility in Missouri and Illinois, providing consistent cash flows and a reliable dividend profile [5] - The company benefits from a supportive regulatory environment and a long-term capital strategy, prioritizing grid upgrades and clean energy transition [5] - Ameren plans to invest $68 billion from 2025 to 2029 to enhance its electric transmission, distribution, and generation infrastructure [23] Financial Performance Comparison - The Zacks Consensus Estimate for PPL's earnings per share in 2025 and 2026 has remained unchanged, with long-term earnings growth pegged at 7.34% [7] - Ameren's EPS estimates for 2025 and 2026 have increased by 0.60% and 0.56%, respectively, with long-term earnings growth pegged at 8.52% [9] - PPL's current Return on Equity (ROE) is 9.08%, while Ameren's ROE is higher at 10.92% [11] Capital Return and Dividend Yield - PPL offers a higher dividend yield of 2.99% compared to Ameren's 2.71%, both exceeding the S&P 500 composite's yield of 1.49% [15] - Both companies are known for their dependable dividend distributions, reflecting solid financial performance [14] Valuation and Debt Metrics - PPL appears slightly cheaper than Ameren on a Price/Earnings Forward 12-month basis, with PPL trading at 18.7X and Ameren at 19.78X [16][18] - PPL's debt-to-capital ratio is 56.85%, while Ameren's is 59.8%, indicating PPL has a slightly lower leverage [20] Price Performance - Over the past six months, Ameren's shares have gained 9.7%, while PPL's shares have risen by 5.4% [24] Conclusion - Ameren Corporation currently has a marginal edge over PPL Corporation due to rising earnings and sales estimates, better ROE, more extensive capital expenditure plans, and superior share price returns [28] - Ameren holds a Zacks Rank 2 (Buy), while PPL has a Zacks Rank 3 (Hold) [29]

Industry Overview - The Zacks Utility - Electric Power industry presents a strong long-term investment case due to its regulated structure, which ensures predictable cash flows and stable returns [1] - Utilities are focusing on domestic growth through infrastructure upgrades, grid modernization, and reliability improvements, making the sector appealing for income-oriented and defensive investors [1] Transition to Cleaner Energy - The utility industry is undergoing a significant transition towards cleaner energy sources, with utilities reducing emissions by retiring coal facilities and investing in renewable generation [2] - Nuclear power is regaining importance as a reliable, carbon-free baseload resource that complements intermittent renewables [2] Company Comparisons - Vistra Corp. (VST) and The Southern Company (SO) are key players in the U.S. electric utility sector, both actively investing in renewable energy [2] - Vistra's acquisition of Energy Harbor in 2023 has expanded its nuclear portfolio and led to the establishment of Vistra Vision, focusing on zero-carbon generation [3] - The Southern Company maintains steady earnings and consistent dividend growth through its regulated utility businesses and investments in cleaner power sources [4] Earnings Growth Projections - The Zacks Consensus Estimate for Vistra's earnings per share in 2025 and 2026 has increased by 1.18% and 0.71%, respectively, with long-term growth projected at 11.67% [6] - The Southern Company's earnings per share estimates for 2025 and 2026 have remained unchanged, with long-term growth projected at 7.23% [8] Return on Equity - Vistra's return on equity (ROE) is 64.04%, significantly higher than The Southern Company's 12.52% and the industry's average of 9.64% [9] Sales Estimates - Vistra's sales estimates for 2025 and 2026 reflect year-over-year growth of 18.01% and 29.81%, while The Southern Company's estimates show growth of 8.73% and 4.87%, respectively [12] Debt to Capital - Vistra's debt-to-capital ratio is 75.38%, compared to The Southern Company's 65.34%, with both companies utilizing higher debt levels to fund operations [14] Valuation - Vistra is trading at a premium with a Price/Earnings Forward 12-month ratio of 20.93X, while The Southern Company is at 19.55X, compared to the industry's 15.27X [15] Price Performance - Over the past six months, Vistra's shares have increased by 10.7%, while The Southern Company's shares have declined by 0.6% [16] Conclusion - Both Vistra and The Southern Company are focused on enhancing their infrastructure and increasing clean electricity generation assets, with Vistra currently having a slight advantage due to stronger sales and earnings estimates, better ROE, and healthier price movement [19]

Core Insights - Dominion Energy, Inc. is focusing on long-term strategic investments and infrastructure expansion to enhance its electric and natural gas systems, aiming for carbon neutrality by 2050 [1][3] - The company is recognized as a strong investment option within the Zacks Utility-Electric Power industry due to its growth outlook and expansion plans [1][2] Growth Outlook - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased by 0.30% to $3.40 over the past 60 days [3] - Expected revenues for 2025 are projected at $15.56 billion, indicating a growth of 7.62% from the 2024 reported figure [3] - Dominion Energy's long-term earnings growth rate is estimated at 10.26% [3] - The company has consistently beaten earnings estimates in the last four quarters, with an average surprise of 12.72% [3][10] Capital Return Program - Dominion Energy has been enhancing shareholder value through consistent dividend payments, with a current quarterly dividend of 66.75 cents per share, leading to an annualized dividend of $2.67 [4] - The current dividend yield stands at 4.34%, significantly higher than the Zacks S&P 500 composite average of 1.11% [4] Capital Investment and Expansion Plan - The company has committed to a nearly $50 billion infrastructure investment plan through 2029, starting with $12.1 billion in 2025 [5][10] - Investments will support the expansion of battery storage, solar, hydro, and both offshore and onshore wind projects by 2036, with an average increase in renewable energy capacity of over 15% per year for the next 15 years [6] Financial Metrics - Dominion Energy's Return on Equity (ROE) is currently at 9.60%, which is above the sector average of 9.38% [7] - The times interest earned (TIE) ratio at the end of Q3 2025 is 2.6, indicating the company's ability to meet long-term debt obligations [8] Share Price Performance - Over the past six months, Dominion Energy's shares have increased by 9.2%, although this lags behind the industry's growth of 11.9% [11]