Special Report: A Utilitarian Tilt

I would usually ignore Utilities stocks during a bull market. They’ve always been one of the “defensive” groups — safe, steady, and rarely exciting.

But this cycle, things have been different. 

Last year, Utilities stopped falling relative to the broader market, signaling a subtle shift in behavior and a big transition in the primary trend.

They’re no longer just a safe haven — some names are quietly holding their own, posting steady outperformance while classic risk-off groups lag.

On a year to date basis, Utilities are the third best performing sector. 

Depending on where you dip your toes into this group, you can find pockets of real strength.

Not all Utilities are created equal, but the ones demonstrating leadership are demanding our attention. 

Let’s talk about some of our favorites now.

We ran the numbers on our Utility Universe, which includes everything from independent power producers to regulated electrics — both U.S. and global.

Here’s what the leadership picture looks like:

Now, let’s dig into the setups: 

First up is a $26B regulated electric utility company from Canada. Here is Fortis $FTS:

Fortis is on the verge of breaking out of a massive multi-year base, as price pierce through the upper bounds of its range..

We like FTS long above 51, targeting 68 over the next 2–4 months.

This stock pays a ~3.50% dividend yield. 

Our second setup today is an $63.5B independent power producer from Texas. This is Vistra Energy $VST: 

Vistra $VST has been a leader in the utilities space all cycle, climbing roughly 800% since breaking out in the summer of 2023. 

Price has spent most of the year consolidating constructively near the 1,109% Fibonacci extension, setting the stage for a fresh leg higher. 

We only want to be long VST on strength above 197, targeting 311.

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