Utility stocks have been under pressure for the past few years as high interest rates depressed these capital intensive businesses. Yet the sector has rebounded over the past year as optimism over demand from data centers and artificial intelligence boost their prospects.
Coupled with the Federal Reserve entering a new rate-easing cycle after a debilitating era of “higher for longer” monetary policy, it makes this the perfect time to invest in the utility sector.
Stocks of two of the best utility operators have surged an average of 164% so far this year. But having come so far so fast, are they still a buy? Let’s dive in to find out.
This post originally appeared at 24/7 Wall St.