ETR

Zacks highlights two utility stocks with positive Earnings Surprise Prediction (ESP) metrics that could beat upcoming quarterly earnings estimates. Entergy (ETR) has a +1.01% ESP ahead of its November 2, 2026 earnings report, while Dominion Energy (D) shows a +3.29% ESP before reporting on October 30, 2026. Both stocks hold #3 (Hold) Zacks Rank ratings and positive ESP signals suggest potential for earnings surprises.

Zacks highlights two utility stocks with positive Earnings Surprise Prediction (ESP) metrics that could potentially beat upcoming earnings expectations. Xcel Energy (XEL) has a +1.50% ESP with a #3 Hold rating, while Entergy (ETR) has a +4.59% ESP with a #2 Buy rating. Both stocks are positioned to potentially deliver earnings surprises based on recent analyst revisions.

The Utility-Electric Power industry is positioned for growth driven by renewable energy expansion, increasing electricity consumption from AI data centers and electric vehicles, and rising electricity prices. However, higher interest rates pose financing challenges for capital-intensive utilities. Four utility stocks with Zacks Rank #2 (Buy) ratings are recommended: Entergy Corp., FirstEnergy Corp., CenterPoint Energy, and PPL Corp., all showing solid earnings growth projections and financial stability.

Oklo Inc. is developing an Advanced Fuel Center in Oak Ridge, TN, to recycle spent nuclear fuel with potential $1.68B investment and 800+ jobs. The project could recover up to 95% of fuel energy from the U.S.'s 100,000 metric tons of stored used fuel.

However, commercial profitability remains unproven. Meanwhile, competitors like Entergy and NextEra Energy are pursuing traditional nuclear growth strategies focused on generation capacity and fuel supply rather than recycling.

Wall Street faces a complex landscape in Q4 2026 with strong year-to-date gains offset by rising Treasury yields and inflation concerns. The article recommends focusing on three sectors with solid earnings fundamentals: semiconductors benefiting from AI infrastructure demand, energy companies with disciplined capital spending amid oil-price volatility, and utilities investing in electricity infrastructure for data centers and grid modernization.

The Utility-Electric Power industry is well-positioned for long-term growth as utilities shift toward renewable energy sources and modernize grid infrastructure. Rising electricity demand from AI data centers, electric vehicles, and industrial reshoring is expected to drive consumption growth of 2% annually through 2027, while electricity prices are projected to increase 4-5% across sectors.

However, elevated interest rates pose financing challenges for this capital-intensive industry. The industry ranks in the top 45% of Zacks industries with a Zacks Industry Rank of #112.