economy
January 20, 2026
One of the best trades of 2025 has stalled out. Josh Brown on the utilities buying opportunity
Josh Brown and Sean Russo walk CNBC Pro readers through the utilities sector and what's next for some names on their Best Stocks list.
TL;DR
- The utility sector saw unexpected growth in 2025, driven by AI and data center demand, with some stocks gaining 20-30%.
- A sector-wide correction occurred due to political factors and analyst downgrades, leading to a 10% downturn.
- American Electric Power (AEP) is undergoing a major grid modernization and expanding transmission capacity, driven by electrification and data center demand.
- NextEra Energy (NEE) focuses on clean energy, with its Florida Power & Light securing a multiyear plan and its energy resources division expanding renewable projects.
- Sempra (SRE) operates infrastructure in California and Texas, focusing on rate-base growth and system reliability, despite a significant earnings miss in February 2025.
- Despite recent volatility, AEP, NEE, and SRE show signs of near-term support and intact longer-term uptrends.
Continue reading the original article