DUKHETF

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat quarterly earnings estimates by comparing recent analyst revisions to consensus estimates. Two utilities stocks are highlighted as examples: Duke Energy (DUK) with a +1.07% ESP and Zacks Rank #3 (Hold), and American Electric Power (AEP) with a +2.23% ESP and Zacks Rank #2 (Buy), both positioned to potentially exceed earnings expectations.

PG&E reported quarterly earnings of $0.41 per share, missing the consensus estimate of $0.42 and falling short on revenues. The company received a Zacks Rank #4 (Sell) rating due to unfavorable estimate revision trends, with shares expected to underperform the market. The Utility - Electric Power industry ranks in the bottom 38% of Zacks industries.

GE Vernova outlines four pathways for Spain to achieve net-zero electricity by 2050, with wind and solar capacity potentially reaching 150-250 GW. The analysis emphasizes that even renewable-heavy systems require 15-20% firm, dispatchable capacity for reliability, creating investment opportunities in grid modernization, energy storage, and flexible generation technologies.

Duke Energy has been attracting investor attention with shares returning +4.3% over the past month. The company is expected to post earnings of $1.87 per share for the current quarter (+3.3% YoY) and $6.72 for the fiscal year (+6.5% YoY).

Revenue is projected to grow 4.9% and 5.2% for the current and next fiscal years respectively. However, the stock received a Zacks Rank #3 (Hold) rating, suggesting it may perform in line with the broader market in the near term.

Duke Energy (DUK) closed at $121.33, up 1.73%, outperforming the S&P 500's 0.28% gain. The company is scheduled to report Q3 earnings on November 5, 2026, with expected EPS of $1.86 (up 2.76% YoY) and revenue of $8.9 billion (up 4.15% YoY). Duke Energy holds a Zacks Rank #3 (Hold) with a Forward P/E of 17.76, trading at a premium to its industry average of 17.08.

NextEra Energy (NEE) has underperformed its industry over the past three months amid investor concerns about capital expenditure plans and potential share dilution. However, the company benefits from strong growth drivers including $94.1B in planned investments through 2030, expanding renewable capacity, and increasing electricity demand from data centers and AI.

With a 12.28% ROE, consistent earnings beats, and a 3.16% dividend yield, NEE remains well-positioned for long-term growth. However, its 18.29X forward P/E valuation premium suggests new investors should wait for a more favorable entry point.

Duke Energy stock rose 1.23% to $119.64, outperforming the broader market decline. The company is expected to report Q3 earnings on November 5, 2026, with projected EPS of $1.88 (up 3.87% YoY) and revenue of $8.86 billion (up 3.74% YoY). Duke Energy holds a Zacks Rank #3 (Hold) with a Forward P/E of 17.59, trading at a slight premium to its industry average.

Duke Energy restored approximately 10,000 customers in North Florida following Hurricane Isaias, demonstrating the value of grid modernization investments. The company plans to deploy $103 billion during 2026-2030 to expand generation capacity and grid infrastructure, with forecasted 6.5% annual EPS growth. However, DUK trades at a premium valuation compared to industry peers and carries a Hold rating.

PG&E stock rose 3.63% to $13.13 on October 9, 2026, as investors anticipate its October 22 earnings call and wildfire-liability commentary. Despite the gain, PG&E shares remain down 17% over the past year due to wildfire liability concerns from Los Angeles fires and delayed state legislative action on utility liability protection. However, the company may benefit from increased electricity demand driven by the AI boom and California's data center growth.

The Fidelity MSCI Utilities Index ETF (FUTY) is a low-cost passively managed fund with a 0.08% expense ratio and $2.18 billion in assets. However, it has received a Zacks ETF Rank of 4 (Sell) and is not recommended for investors seeking utilities exposure. The fund has underperformed year-to-date, declining 1.81%, with better alternatives available such as Vanguard Utilities Index Fund ETF Shares (VPU) and State Street Utilities Select Sector SPDR ETF (XLU).

PPL Corporation is expanding its generation portfolio to meet rising electricity demand, particularly from data centers and large industrial customers. The company's Kentucky operations include 2,000 MW of natural gas, 240 MW of solar, and 500+ MW of battery storage, with $5.7 billion in planned investments through 2029.

PPL Electric's data center pipeline reached 31.8 GW with over 11 GW under signed agreements. The company's joint venture Invium Energy has sites capable of supporting 8-14 GW of capacity, with 5+ GW of gas projects in interconnection queues.

Duke Energy (DUK) rose 1.6% to $115.66, outperforming the S&P 500's 0.58% gain. The stock has declined 5.31% over the past month.

Upcoming earnings are projected at $1.85 per share with 2.21% year-over-year growth, and full-year estimates forecast $6.72 EPS with 6.5% growth. Duke Energy holds a Zacks Rank #3 (Hold) with a Forward P/E of 16.94, slightly above its industry average of 16.68.

Duke Energy has demonstrated a strong earnings-beat streak, with an average surprise of 9.34% over the last two quarters. The stock currently has a positive Earnings ESP of +0.54% combined with a Zacks Rank #3 (Hold), suggesting another potential earnings beat is likely. Stocks with this combination historically beat consensus estimates nearly 70% of the time.

The article explains how to use the Zacks Earnings ESP (Expected Surprise Prediction) filter to identify stocks likely to beat earnings expectations. It demonstrates the methodology using two utility stocks as examples: Duke Energy with a +0.54% ESP and BCE with a +7.80% ESP, both reporting earnings on November 5, 2026. The strategy combining positive ESP with Zacks Rank #3 or better has historically produced 28.3% annual returns.