According to the article, which utility stocks are currently performing well and why?
Constellation Energy (CEG), NextEra Energy (NEE), and Southern Company (SO) are currently performing well in the utility sector. Constellation Energy, which is the largest owner of nuclear plants in the US, has seen its shares rise more than 85% year to date due to the government’s push towards green energies and growing power demand from data centers. NextEra Energy, which involves developing renewable energy in the US, is expected to see annual earnings growth of 6% to 8% through 2026 due to the demand for renewables over the next five to ten years. Southern Company has benefited from data centers looking to build in the Georgia area, resulting in higher electricity usage and sales to data centers being up over 12% for the quarter compared to the same period in 2024. Additionally, the debut of the first nuclear reactor plant built from scratch in decades by Southern’s subsidiary Georgia Power has contributed to the company’s performance. These companies are benefiting from the surge in demand for electricity due to the boom in data center growth, re-shoring of manufacturing capabilities to the US, and the proliferation of charging stations for electric vehicles.
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