Utilities Outperform Technology Giant Nvidia in S&P 500: Vistra and Constellation Energy's Remarkable Growth

Irving, Texas, Texas United States of America
Electricity demand increasing due to growing energy consumption from AI models and data centers.
Total capital expenditures among US power utilities forecasted to increase by 30% from 2022 to 2026.
Utilities sector is top-performing sector in S&P 500 with a yield of 2.97% compared to technology's yield of 0.7%.
Utilities Vistra and Constellation Energy outperformed technology giant Nvidia in S&P 500 with growth of 143% and 83% respectively.
Vistra's predicted earnings of $6.10 per share in 2024 and revenue growth of nearly 11%. Constellation Energy expected to make $7.58 per share this year with earnings jumping another 7% in 2025.
Utilities Outperform Technology Giant Nvidia in S&P 500: Vistra and Constellation Energy's Remarkable Growth

In a surprising turn of events, two utility stocks, Vistra (VST) and Constellation Energy (CEG), have outperformed technology giant Nvidia in the S&P 500 this year. Despite Nvidia's impressive 81.5% gain, these utilities have shown remarkable growth.

The utilities sector is currently the top-performing sector in the S&P 500, with a yield of 2.97% compared to technology's yield of 0.7%. This discrepancy can be attributed to several factors, including growing electricity demand and the shift towards renewable energy sources.

One interesting fact is that an average Google search consumes around 0.3 watt-hours of electricity, while a similar request made to ChatGPT requires 2.9 watt-hours. This increased energy consumption from AI models and data centers has led to a significant increase in demand for electricity.

Total capital expenditures among a collection of 34 power utilities in the US are forecasted to increase by 30% from 2022 to 2026. This trend is expected to continue as more companies invest in renewable energy and data centers require large amounts of electricity.

Vistra, an electric utility based in Irving, Texas, has seen its shares rise by 143% this year and yields 0.9%. Analysts predict earnings of $6.10 per share in 2024 and revenue growth of nearly 11%. Constellation Energy's stock is up more than 83% this year, not including its yield of 0.7%. Analysts expect the company to make $7.58 per share this year and earnings to jump another 7% in 2025.

These impressive performances from Vistra and Constellation Energy demonstrate that utilities can be a strong investment option, even in a technology-driven market. The sector's consistent growth and attractive yields make it an appealing choice for investors looking for stable returns.


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Confidence

90%

Doubts
  • Are there any potential external factors that could impact the performance of Vistra and Constellation Energy?
  • Is the information about electricity consumption from Google search and ChatGPT accurate?

Sources

96%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Utility stocks an AI play? Up 8% in May alone, third-best S&P sector performer YTD

Seeking Alpha Investment Community Anuron Mitra Saturday, 18 May 2024 20:47
  • Unique Points
    • Perception that Utilities sector is becoming an AI play due to rising demand for power from data centers.
    • , Data center power demand expected to grow by 160% by the end of this decade, requiring around $50B investment in new generation capacity.
    • , NRG Energy top boss Larry Coben expects a step change in long-term power demand attributed to recent advancements in GenAI and other factors.
    • , CEG chief executive Joseph Dominguez notes booming demand for artificial intelligence technologies and other digital infrastructure projects.
    • , Duke Energy finance chief Brian Savoy mentions unprecedented demand from AI data centers and chip manufacturers.
  • Accuracy
    • Utility sector has recouped all losses from 2023 and rose nearly 8% in May alone.
    • Data center power demand is growing due to AI revolution and increasing efficiency gains in electricity use slowing down.
    • Utilities are the top-performing sector in the S&P 500 this year, with a yield of 2.97% compared to technology’s yield of 0.7%.
    • Electricity demand is forecast to grow as much as 20% by 2030 which could bolster profits and dividends for utility companies.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (90%)
    The article contains a few informal fallacies and an example of inflammatory rhetoric. It uses an exaggerated comparison to describe the performance of utility stocks by calling them 'sizzling hot', which is intended to grab attention but doesn't provide meaningful information. Additionally, the author quotes several CEOs and their views on the industry, presenting their opinions as facts without proper context or analysis.
    • The Utilities sector has already recouped all of its losses from 2023
    • The sector has risen nearly 8% in May alone.
    • On average, a ChatGPT query needs nearly 10 times as much electricity to process as a Google search.
    • For years, data centers displayed a remarkably stable appetite for power, even as their workloads mounted.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

2 Utility Stocks Outperform Nvidia — Even Before Adding Dividends

Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Monday, 13 May 2024 12:00
  • Unique Points
    • Two utility stocks, Vistra (VST) and Constellation Energy (CEG), have outperformed Nvidia's 81.5% gain this year.
    • Utilities are the top-performing sector in the S&P 500 this year, with a yield of 2.97% compared to technology's yield of 0.7%.
    • The International Energy Agency states that an average Google search consumes around 0.3 watt-hours of electricity, while a similar ChatGPT request requires 2.9 watt-hours.
    • Total capital expenditures among a collection of 34 power utilities in the US are forecast to increase by 30% from 2022 to 2026.
    • Vistra, an electric utility based in Irving, Texas, has seen its shares rise by 143% this year and yields 0.9%. Analysts predict earnings of $6.10 per share in 2024 and revenue growth of nearly 11%.
    • Constellation Energy's stock is up more than 83% this year, not including its yield of 0.7%. Analysts expect the company to make $7.58 per share this year and earnings to jump another 7% in 2025.
  • Accuracy
    • Two utility stocks, Vistra (VST) and Constellation Energy (CEG), have outperformed Nvidia’s 81.5% gain this year.
    • Utilities are the top-performing sector in the S&P 500 this year, with a yield of 2.97% compared to technology’s yield of 0.7%.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

98%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

From Worst to First: Utilities ETFs Rise Past Other Sectors

Yahoo Finance Sumit Roy Sunday, 19 May 2024 05:35
  • Unique Points
    • The utilities sector is the best-performing sector of the year with a year-to-date gain of 13.6%.
    • XLU’s underperformance earlier this year might have involved interest rates and their inverse correlation with XLU’s share price.
    • Electricity demand is forecast to grow as much as 20% by 2030 which could bolster profits and dividends for utility companies.
  • Accuracy
    • ]The utilities sector is the best-performing sector of the year with a year-to-date gain of 13.6[.
    • Utilities are the top-performing sector in the S&P 500 this year, with a yield of 2.97% compared to technology’s yield of 0.7[.
    • The utility sector has gained 8.5% since the start of April, making it the top-performing S&P 500 sector of the second quarter and the third-best-performing sector year to date[.
    • Two utility stocks, Vistra (VST) and Constellation Energy (CEG), have outperformed Nvidia’s 81.5% gain this year[.
    • The International Energy Agency states that an average Google search consumes around 0.3 watt-hours of electricity, while a similar ChatGPT request requires 2.9 watt-hours[.
    • Total capital expenditures among a collection of 34 power utilities in the US are forecast to increase by 30% from 2022 to 2026[.
    • Utilities gained support from the Fed’s message indicating a longer period of extended higher rates but no rate hikes[.
    • The sector is benefiting from the artificial intelligence (AI) craze and data center growth, which will likely boost electricity demand for companies within the utilities sector[.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

89%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

5 Utility Stocks at the Forefront of the Recent Rally

Yahoo Finance Sweta Killa Sunday, 19 May 2024 05:38
  • Unique Points
    • The utility sector has gained 8.5% since the start of April, making it the top-performing S&P 500 sector of the second quarter and the third-best-performing sector year to date.
    • Five utility stocks that have led the way higher in the past month are California Water Service Group CWT, TransAlta TAC, American Water Works Company AWK, NRG Energy Inc. NRG and American Electric Power Company Inc. AEP.
    • California Water Service (CWT) has seen its stock jump 19.7% in a month and has an estimated earnings growth rate of 246.1%.
    • An ever-increasing population continues to push up demand for utility supplies like water, gas, and electricity.
  • Accuracy
    • Utility stocks gained support from the Fed’s message indicating a longer period of extended higher rates but no rate hikes.
    • The prospect of rate cuts this year, a slowing economy, and solid industry fundamentals have buoyed the recent utility sector rally.
  • Deception (50%)
    The article contains selective reporting as the author only mentions earnings estimate revisions and positive Zacks Rank for five specific utility stocks without providing any context about the overall industry or economy. The author also makes editorializing statements such as 'These are California Water Service Group, TransAlta, American Water Works Company, NRG Energy Inc. and American Electric Power Company Inc.', which is an opinionated statement.
    • The utility sector, which tends to outperform when the economy is in a downturn, staged a nice comeback
    • TransAlta is Canada’s largest non-regulated electric generation and marketing company.
    • California Water Service is one of the largest investor-owned water utilities in the United States.
    • American Water is a water supply and wastewater service provider.
    • These are California Water Service Group CWT, TransAlta TAC, American Water Works Company AWK, NRG Energy Inc. NRG and American Electric Power Company Inc. AEP.
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication