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Utility Stocks on Josh Brown's Best Stocks List: NextEra Energy Nears Multi-Year Breakout

Josh Brown and Sean Russo of Ritholtz Wealth Management analyze electric utilities on their Best Stocks list. NextEra Energy demonstrates strong fundamentals with 8% EPS growth guidance and is nearing a multiyear technical breakout. FirstEnergy shows robust earnings growth and a structural breakout on monthly charts. Duke Energy is recovering from a prior false breakout and needs volume confirmation. All three offer dividend yields and rate base growth, but technical analysis highlights varying risk levels and potential for new highs.

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Utility Stocks on Josh Brown's Best Stocks List: NextEra Energy Nears Multi-Year Breakout

Analysts from Ritholtz Wealth Management highlight electric utilities on their Best Stocks list, with NextEra Energy approaching a significant multiyear price breakout and evaluate Duke Energy and FirstEnergy.

Introduction

The Best Stocks in the Market list, curated by Josh Brown and Sean Russo, ranks stocks based on relative strength. As of February 23, the list includes 232 names, with electric utilities prominent due to growth prospects and technical patterns.

NextEra Energy (NEE)

NextEra Energy combines a regulated Florida utility, Florida Power and Light, with a leading renewable energy business.

  • Reported 2025 earnings up 8% year-over-year, beating guidance, and guides for 8%+ compounded annual EPS growth through 2032.
  • Dividend yield of 2.7%. Technically, the stock is assaulting multiyear highs on monthly charts. On the one-year chart, support is at $88-$90, with a higher low near $80. RSI at 66 indicates strength without exhaustion.
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Duke Energy (DUK)

Duke Energy is a large regulated utility serving the Carolinas, Florida, and the Midwest.

  • Management guides for 5%-7% annual EPS growth with a ~3.4% dividend yield. The stock previously experienced a false breakout above $130 but is now attempting to recover. Analysts advise waiting for a clean break on convincing volume, as the prior failure creates memory at key resistance levels.

FirstEnergy (FE)

FirstEnergy is a pure-play regulated utility focused on rate base growth.

  • 2025 EPS rose 7.6% to $2.55, revenue up 12% to $15.1 billion, with capital investments up 25%.
  • 2026 guidance: EPS $2.62–$2.82, backed by a $36 billion five-year capex plan targeting 10% annual rate base growth.
  • Data center pipeline doubled to 12.9 GW. Technically, FE is breaking out to $50, with first support at $48 and the 200-day moving average at $44. The monthly chart shows a structural breakout above the $45-$47 range, potentially signaling new cycle highs.

Conclusion

All three utilities benefit from rate base expansion and dividends. NextEra and FirstEnergy are in critical technical breakout phases, while Duke Energy requires volume confirmation. The analysts note that top stocks on the list are from the physical economy, reflecting a trend toward analog businesses.

Disclosures: No positions in NEE, DUK, or FE held by analysts at time of writing. Content is for informational purposes only and not financial advice.

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