economy
This AI Dark Horse Sector Keeps Winning. Stick With The Trade, Analyst Says
The story for this sector is that 'winners keep winning,' Wolfe analyst Steve Fleishman said.
TL;DR
- The utilities sector has gained over 8% year-to-date, outpacing the S&P 500's approximately 5% gain.
- Wolfe Research advises investors to favor winning stocks within the utilities sector, noting the trend that "winners keep winning."
- Entergy is a top performer, up over 27% this year, with analysts expecting a 13% compound annual growth rate for earnings between 2026 and 2030.
- NiSource and American Electric Power are also sector leaders, up over 15% and 17% respectively, benefiting from capital expenditures and exposure to states supporting data center expansion.
- Most analysts have buy ratings on Entergy, NiSource, and American Electric Power, with price targets suggesting further upside.