Utility stocks are on fire — here are Wall Street analysts' top picks :
The S&P 500 Utilities ETF (XLU) is up more than 12% year to date in a reversal from last year when investors soured on the sector due to expensive projects and high interest rates. ...
Constellation Energy (CEG) is the largest owner of nuclear plants in the US. The Baltimore-based company has been a beneficiary of the government's push to transition to green energies and growing power demand from data centers. Constellation shares are up more than 85% year to date as the company forecasts base earnings to grow by at least 10% annually through the decade. ... The analyst highlights that Constellation produces power at roughly $25 per megawatt hour, while the government's Inflation Reduction Act allows for a selling price floor of $45 per megawatt hour, providing a minimum of $20 margin per megawatt hour. ... Constellation has been operating as a standalone energy provider since 2022 after a spin-off from utility giant Exelon (EXC). The company has been buying back shares and recently upped its dividend ahead of its earnings due on Thursday. ...
NextEra Energy (NEE): The $147-billion-market-cap company is one of the largest electric
power generators in the country. While NextEra owns a regulated utility
in Florida, investors are more interested in its non-regulated part of
the business, NextEra Energy Resources, which involves developing
renewable energy in the US. ... "The re-domestication of industry in the US supported by public
policy will drive the need for more electricity," CEO John Ketchum told
analysts in April. The stock is up about 20% year to date. ...
Among the regulated utilities, Southern Company (SO) is one of the best performers inside the Utility sector year to date, with shares up more than 10%.
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