We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Exelon, PG&E and Centuri
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 18 2026 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Exelon Corp. (EXC - Free Report) , PG&E Corp. (PCG - Free Report) and Centuri Holdings, Inc. (CTRI - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Utility Stocks to Track as Fed Delivers First Rate Hike Since 2023
Federal Reserve chair Kevin Warsh formally announced the much-anticipated benchmark interest rate hike by 25 basis points, taking the funds rate to 3.75% to 4.00%. This is the first rate increase since 2023, and Warsh indicated another round of rate hikes before the end of 2026.
The Federal Open Market Committee voted 12-0 to raise the key interest rate. The decision reflected elevated inflation, the ongoing Middle East crisis and resulting rise in oil prices, a stable U.S. labor market and solid economic activity supported by resilient consumer spending.
Rate hikes can benefit sectors such as banking by supporting higher interest income. For the capital-intensive Zacks Utilities sector, however, higher borrowing costs can be a headwind because utilities rely heavily on external financing to fund infrastructure investments. Rising interest rates increase the sector’s cost of capital, which can pressure margins and potentially constrain utilities’ ability to maintain consistent dividend payouts.
Some utilities appear better positioned to withstand the impact of higher interest rates and continue generating relatively stable returns. Exelon Corp., PG&E Corp. and Centuri Holdings, Inc., among others, currently carry a VGM Score of either A or B and a Zacks Rank of #3 (Hold).
More Rate Hikes on the Way?
The Fed policymakers strongly indicate another round of rate hikes before the end of the year. The rate hike will assist in lowering the inflation rate to near the target level of 2% and encourage more savings. The interest rate hike continues to assume a strong job market over the long term.
The policymakers sounded quite positive in their outlook for the U.S. economy. Quite naturally, the Fed expects to increase interest rates once more in 2026.
Selecting the Right Utilities
Utilities are traditionally averse to interest rate hikes. However, we have selected three utility stocks based on parameters so convincing that investors will think twice before ignoring them even after yesterday’s rate hike.
The qualifying criteria include a times interest earned ratio greater than 1, which means it has enough operating income to cover its current interest expenses and that the business is not in immediate danger of defaulting on its debt obligations. The stocks selected have shown improvement in earnings estimates in 2026.
Exelon Corp. is based in Chicago. It is focused solely on transmission and distribution operations and serves almost 11 million customers. Exelon continues to see rising high-density load interest across its service territories, led by data centers. To meet the rising demand, the company plans to expand infrastructure and plans to invest $41.7 billion over 2026-2029.
The times interest earned ratio of the company is currently pegged at 2.5; its beta is 0.3, and the Zacks Consensus Estimate for 2026 earnings per share has risen 0.35% in the past 60 days. The current dividend yield of the company is 3.98%. It carries a Zacks Rank #3 at present and has a VGM Score of B. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PG&E Corp. is based in Oakland, CA. The utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. Rising demand from data centers continues to expand the company’s growth opportunities. The utility plans to invest $12.4 billion in 2026 and $73 billion over the 2026-2030 period, while identifying at least $5 billion of additional customer-beneficial investment opportunities beyond its current capital plan.
The company’s times interest earned ratio is currently pegged at 1.9, and its beta is 0.24. The Zacks Consensus Estimate for 2026 earnings per share indicates year-over-year growth of 10%. The current dividend yield of the company is 1.52%. It currently has a Zacks Rank #3 and a VGM Score of B.
Centuri Holdings is based in Phoenix, AZ. Centuri provides utility and energy infrastructure services, with operations spanning grid modernization, distributed power, hyperscale data centers and renewable energy projects, including offshore wind and battery storage. The company plans to invest $75-$90 million in 2026 to support its utility and infrastructure operations.
The times interest earned ratio of the company is currently pegged at 1.4, and the Zacks Consensus Estimate for 2026 earnings per share has risen 4.62% in the past 60 days. It has a Zacks Rank #3 and a VGM Score of A.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
View the Zacks #1 Rank List
Image: Bigstock
The Zacks Analyst Blog Highlights Exelon, PG&E and Centuri
For Immediate Release
Chicago, IL – September 18 2026 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Exelon Corp. (EXC - Free Report) , PG&E Corp. (PCG - Free Report) and Centuri Holdings, Inc. (CTRI - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Utility Stocks to Track as Fed Delivers First Rate Hike Since 2023
Federal Reserve chair Kevin Warsh formally announced the much-anticipated benchmark interest rate hike by 25 basis points, taking the funds rate to 3.75% to 4.00%. This is the first rate increase since 2023, and Warsh indicated another round of rate hikes before the end of 2026.
The Federal Open Market Committee voted 12-0 to raise the key interest rate. The decision reflected elevated inflation, the ongoing Middle East crisis and resulting rise in oil prices, a stable U.S. labor market and solid economic activity supported by resilient consumer spending.
Rate hikes can benefit sectors such as banking by supporting higher interest income. For the capital-intensive Zacks Utilities sector, however, higher borrowing costs can be a headwind because utilities rely heavily on external financing to fund infrastructure investments. Rising interest rates increase the sector’s cost of capital, which can pressure margins and potentially constrain utilities’ ability to maintain consistent dividend payouts.
Some utilities appear better positioned to withstand the impact of higher interest rates and continue generating relatively stable returns. Exelon Corp., PG&E Corp. and Centuri Holdings, Inc., among others, currently carry a VGM Score of either A or B and a Zacks Rank of #3 (Hold).
More Rate Hikes on the Way?
The Fed policymakers strongly indicate another round of rate hikes before the end of the year. The rate hike will assist in lowering the inflation rate to near the target level of 2% and encourage more savings. The interest rate hike continues to assume a strong job market over the long term.
The policymakers sounded quite positive in their outlook for the U.S. economy. Quite naturally, the Fed expects to increase interest rates once more in 2026.
Selecting the Right Utilities
Utilities are traditionally averse to interest rate hikes. However, we have selected three utility stocks based on parameters so convincing that investors will think twice before ignoring them even after yesterday’s rate hike.
The qualifying criteria include a times interest earned ratio greater than 1, which means it has enough operating income to cover its current interest expenses and that the business is not in immediate danger of defaulting on its debt obligations. The stocks selected have shown improvement in earnings estimates in 2026.
Exelon Corp. is based in Chicago. It is focused solely on transmission and distribution operations and serves almost 11 million customers. Exelon continues to see rising high-density load interest across its service territories, led by data centers. To meet the rising demand, the company plans to expand infrastructure and plans to invest $41.7 billion over 2026-2029.
The times interest earned ratio of the company is currently pegged at 2.5; its beta is 0.3, and the Zacks Consensus Estimate for 2026 earnings per share has risen 0.35% in the past 60 days. The current dividend yield of the company is 3.98%. It carries a Zacks Rank #3 at present and has a VGM Score of B. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PG&E Corp. is based in Oakland, CA. The utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. Rising demand from data centers continues to expand the company’s growth opportunities. The utility plans to invest $12.4 billion in 2026 and $73 billion over the 2026-2030 period, while identifying at least $5 billion of additional customer-beneficial investment opportunities beyond its current capital plan.
The company’s times interest earned ratio is currently pegged at 1.9, and its beta is 0.24. The Zacks Consensus Estimate for 2026 earnings per share indicates year-over-year growth of 10%. The current dividend yield of the company is 1.52%. It currently has a Zacks Rank #3 and a VGM Score of B.
Centuri Holdings is based in Phoenix, AZ. Centuri provides utility and energy infrastructure services, with operations spanning grid modernization, distributed power, hyperscale data centers and renewable energy projects, including offshore wind and battery storage. The company plans to invest $75-$90 million in 2026 to support its utility and infrastructure operations.
The times interest earned ratio of the company is currently pegged at 1.4, and the Zacks Consensus Estimate for 2026 earnings per share has risen 4.62% in the past 60 days. It has a Zacks Rank #3 and a VGM Score of A.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.