FE

FirstEnergy is set to report Q3 2026 earnings on Oct. 27 with expected EPS growth of 9.64% and revenue growth of 3.29%. While data center demand and infrastructure modernization should support results, higher maintenance and storm costs may weigh on performance. The company's negative Earnings ESP of -0.73% suggests limited upside surprise potential.

In a comparison of two utility stocks, FirstEnergy (FE) emerges as the superior value opportunity compared to PSEG (PEG). FE holds a Zacks Rank #2 (Buy) with a Value grade of B, while PEG has a Zacks Rank #3 (Hold) with a Value grade of C. FE's stronger earnings outlook and better valuation metrics, including a lower P/B ratio (1.8 vs 2.08) and PEG ratio (2.60 vs 2.72), position it as the more attractive investment for value investors.

Enel Chile (ENIC) and FirstEnergy (FE) have both outperformed the broader Utilities sector year-to-date. ENIC has gained 9.5% compared to the sector's -3.2% decline, while FE returned 0.2%. Both stocks hold Zacks Rank #2 (Buy) ratings, with ENIC showing improved analyst sentiment as consensus earnings estimates rose 2.9% in the past quarter.

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.

Dominion Energy is capitalizing on surging data center demand in Virginia, with contracted capacity reaching 53.8 GW as of July 2026, up 11% from December 2025. The company plans to invest $65 billion through 2030 to expand infrastructure. Other utilities like FirstEnergy and PPL Corporation are also benefiting from rising data center power demand, which is driving electricity sales growth and rate-base expansion.

FirstEnergy Corp. announced a $36 billion investment plan through 2030, including over $19 billion for transmission infrastructure, targeting 10% annual rate-base growth. The company benefits from rising electricity demand driven by data centers and contracted pipeline demand reaching 24.8 GW. FirstEnergy expects Core Earnings growth near the upper end of its 6-8% annual target, supported by its extensive T&D network serving over 6 million customers across six states.

PPL Corporation is investing $23 billion through 2029 to modernize its transmission and distribution networks, targeting 10.3% annual rate-base growth and 6-8% EPS growth. Recent projects include an $8.2 million infrastructure upgrade in Rhode Island and a $71.5 million DOE-funded grid resilience project. The company aims to improve reliability, reduce outages, and accommodate rising electricity demand from data centers and economic development.

NiSource is expected to report Q3 2026 earnings of $0.22 per share (up 15.8% YoY) with revenues of $1.39 billion (up 9.5% YoY) on October 28. The company has a positive Earnings ESP of +13.64% combined with a Zacks Rank #3, suggesting a likely earnings beat. NiSource has beaten consensus estimates in 2 of the last 4 quarters.

PPL Corporation announced a $23 billion infrastructure investment plan through 2029, targeting 10.3% average annual rate-base growth. The company raised its quarterly dividend by 4.6% in 2026 and targets 4-6% annual dividend growth through 2029, while forecasting 6-8% annual EPS growth. PPL's debt-to-capital ratio of 57.46% is lower than the industry average, and the company holds a Zacks Rank #2 (Buy) rating.

Xcel Energy agreed to sell its Michigan natural gas and electric operations, expected to close in 2027. The company plans a $60 billion investment through 2030 targeting 11% annual rate base growth and 6-8% EPS growth, supported by rising data center demand driving nearly 5% annual retail electricity sales growth.

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.

IDACORP (IDA) is investing $7.1 billion through 2030 to expand generation capacity, battery storage, and transmission infrastructure. The company expects 2026 capital expenditures of $1.3-$1.5 billion and earnings of $6.30-$6.45 per share.

Customer count grew 2.3% year-over-year with industrial revenues up 17%, driven by rising electricity demand. IDA's debt-to-capital ratio of 50.08% is lower than the industry average of 62.33%.