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.

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.

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 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.

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.

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.

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%.

PPL Corporation's shares fell 5.2% in the past month, underperforming its industry. While the company benefits from rising data center demand and plans $23 billion in regulated infrastructure investment through 2029, it trades at a premium valuation with below-industry ROE of 9.33% versus 11.4%, suggesting investors may wait for a better entry point. The stock holds a Zacks Rank #3 (Hold) rating.

Tenet Healthcare (THC) is highlighted as the Bull of the Day with a Zacks Rank #1 (Strong Buy) due to strong Q2 earnings that beat expectations by 50%, 26 consecutive quarters of earnings beats, and attractive valuation at 12.6X forward earnings. Archrock (AROC) is the Bear of the Day with a Zacks Rank #5 (Strong Sell) following back-to-back earnings misses, reduced guidance, and declining EPS estimates. The article also provides analysis on NextEra Energy (NEE), FirstEnergy (FE), and PPL Corp. (PPL) regarding AI-driven data center demand opportunities.

NextEra Energy's backlog reached 35.1 GW after adding 3.6 GW in Q2 2026, driven by AI data center demand. The company is in talks with 30 potential data center hubs and targets 15 GW of new generation by 2035, with upside potential exceeding 30 GW. However, NEE trades at a premium valuation of 19.4X forward P/E versus the industry average of 14.95X and carries a Zacks Rank #3 (Hold).