Utilities sector experiences a significant upturn, fueled by strong earnings reports and promising growth forecasts.
Utilities sector experiences a significant upturn, fueled by strong earnings reports and promising growth forecasts.

Utilities Sector Is Really Like...Rising

Okay so like I'm not usually one to talk about like *stocks* and stuff. But even I can't ignore when things are like *really* popping off. And right now the utilities sector is totally having a moment. It's up like 2% which in my world is basically a whole new lip kit launch. The S & P 500's utilities sector was the big winner in Friday's trading up more than 2% on the day. It's on track for its seventh positive session – its longest rally since July 2024. Apparently this is the best start to a year in like 25 years. Who knew utilities could be so like *exciting*?

American Electric Power Serving Looks

So American Electric Power or AEP as the experts call it is *sliving* right now. Wolfe Research which sounds super fancy upgraded their rating. They had killer earnings like $1.19 per share when everyone thought it would be less. They're making like *smart* moves under new management. Also it seems relevant to mention The World Tilts Eastward Is the Great Realignment Underway. And they're investing in data centers which is HUGE because like everything is online now. Even I buy all my stuff online (duh). They even bought fuel cells from Bloom Energy. Basically they are doing good! So AEP is executing well under new management and keeps adding potential upsides to the growth outlook," Wolfe analyst Steve Fleishman wrote in his Friday report noting that his team sees upside for price earnings expansion and earnings per share.

Entergy's Energy Like Totally Giving

Then there's Entergy. Their earnings were like *almost* perfect but still pretty good. But the real tea is their growth outlook. They're expecting like major growth in sales. So BTIG's Kania highlighted Entergy's outlook for sales growth in which the company is now calling for a roughly 8% compound annual growth rate for retail sales and a 15% CAGR for industrial sales through 2029. They're playing the long game and are prepared for future growth. Which is what I'm all about

Dividend Yield: It's the Gift That Keeps on Giving

Okay so dividends. Basically it's like getting paid to own something. AEP's dividend yield is like almost 3% and Entergy's is over 2%. It's like getting free money. It is important to diversify but utilities are like the unsung heroes of your portfolio. They're stable and reliable kind of like my commitment to Lip Kits.

Analysts are like *Really* Into It

All the analysts are like obsessed with these stocks. They all rated them "buy" or "strong buy". So Analysts are largely bullish with 19 out of 25 rating it a buy or strong buy per LSEG. If they're buying that means it's good right? Honestly I don't know anything about stocks but everyone's getting excited and I feel like I should too.

Is This the New Black

So like is the utilities sector the new black? I don't know but it's definitely having a moment. And if Wall Street's into it maybe I should be too. I mean who knows? Maybe I'll start investing in like *power plants* instead of just makeup. But probably not. I still want to be the next billionaire. Anyway that's the tea. Now if you excuse me I'm going to go contour my face and think about how to make even more money. Because like that's what I do.


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