Core Insights - NorthWestern (NWE) reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, and up from $0.65 per share a year ago, representing an earnings surprise of +5.33% [1] - The company achieved revenues of $387 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.59% and increasing from $345.2 million year-over-year [2] - NorthWestern has outperformed consensus EPS estimates three times in the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +5.26%, with actual earnings of $0.40 per share compared to an expected $0.38 [1] - The current consensus EPS estimate for the upcoming quarter is $1.21, with projected revenues of $415.26 million, and for the current fiscal year, the EPS estimate is $3.58 on revenues of $1.61 billion [7] Stock Performance and Outlook - NorthWestern shares have increased by approximately 14.8% since the beginning of the year, while the S&P 500 has gained 17.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Utility - Electric Power industry, to which NorthWestern belongs, is currently ranked in the top 21% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, PPL, is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year increase of +9.5%, with revenues projected at $2.17 billion, up 5.1% from the previous year [9][10]

Core Viewpoint - Despite market volatility in 2025, certain stable companies have provided solid returns, distinguishing themselves from high-growth tech stocks and offering safety and performance to investors [1] Group 1: Southern Company (SO) - Southern Company has shown impressive strength in 2025, with a year-to-date increase of approximately 11%, while the S&P 500 is down nearly 7% [2] - The company has a market capitalization of nearly $100 billion and is the second-largest holding in the Utilities Select Sector SPDR Fund, benefiting from strong inflows as investors seek stability [3] - Southern Company offers a dividend yield of 3.16% and is trading above its 200-day moving average, indicating a bullish trend [4] Group 2: Coca-Cola Company (KO) - Coca-Cola has seen a nearly 17% increase in shares year-to-date, outperforming the broader market and the consumer staples sector [6] - The company has attracted significant institutional support, with inflows totaling nearly $18 billion over the past 12 months, reflecting a demand for safety and yield [7] - Analysts maintain a consensus Buy rating for Coca-Cola, with an average price target of $75.06, indicating potential upside [8] Group 3: Verizon Communications (VZ) - Verizon has outperformed the S&P 500 with a 7% increase year-to-date and offers a substantial dividend yield of 6.3% [10] - The company reported strong Q1 2025 results, with an EPS of $1.19 and revenue of $33.5 billion, reaffirming its full-year guidance [11] - Verizon has a history of increasing dividends for 20 consecutive years and continues to generate strong free cash flow, making it attractive for long-term investors [12]