Core Insights - Energy companies are positioned as attractive investments for those looking to diversify their portfolios in the AI sector, particularly due to their solid dividend yields [1][2] Group 1: Energy Consumption and AI - AI is projected to significantly increase energy consumption, with data centers currently using 4.4% of all energy generated in the U.S. and expected to consume as much electricity as 22% of all U.S. households by 2028 [2] - The demand for energy is anticipated to rise, creating opportunities for energy companies that also offer dividends [2] Group 2: Constellation Energy - Constellation Energy is the largest nuclear power producer and clean energy provider in the U.S., contributing about 10% of the country's clean energy [4] - The company has a revenue CAGR of 3.14% over the past three years, with a gross profit margin of 20.13% and a net income margin of 11% [5] - Constellation has partnered with Microsoft to revitalize the Three Mile Island nuclear plant, which will enhance its nuclear capacity and secure a long-term buyer for its electricity, projecting an EPS growth rate of 10%-13% through 2030 [6] Group 3: NextEra Energy - NextEra Energy operates a 76-gigawatt capacity, with 65% derived from renewable and nuclear sources, and has a revenue CAGR of 9.85% over the past three years [8][10] - The company has partnered with Alphabet to bring the Duane Arnold Energy Center back online, which is expected to contribute to an 8% EPS CAGR through 2035 [9] - NextEra has a gross margin of 62% and a net income margin of 24.73%, with a dividend yield of 2.71% that has been growing for 30 years [10] Group 4: Duke Energy - Duke Energy operates in a strategic location between Virginia and Georgia, which are key states for new data centers, with Virginia's energy demand projected to grow by 153% by 2040 [13][15] - The company has a revenue CAGR of 5.29%, a gross margin of 52.4%, and a net margin of 15.97%, with a dividend yield of 3.57% that has been growing for 15 years [16] - Duke is well-positioned to meet the increasing energy demands from Virginia, which has become the largest energy importing state in the U.S. [15]

Editor's note: Visit the Duke Energy News Center for downloadable B-roll and high-resolution images. CHARLOTTE, N.C., Jan. 23, 2026 /PRNewswire/ -- With Winter Storm Fern expected to move into the Carolinas this weekend, Duke Energy crews and support teams are completing their preparations and urging customers to finalize their own storm plans. Forecasts point to dangerous travel conditions and outages that could last several days in the hardesthit areas. Our view Rick Canavan, Duke Energy storm director: M ...

Company Overview - Goldman Sachs, founded in 1869, is the world's second-largest investment bank by revenue and ranks 55th on the Fortune 500 list of largest U.S. corporations by total revenue [1] - The firm offers a range of services including financing, advisory services, risk distribution, and hedging for institutional and corporate clients, maintaining its leadership in the investment landscape [1] Market Insights - Timothy Moe, Chief Head of APAC Equity Strategy at Goldman Sachs, highlighted a historical pattern of market corrections occurring every eight to nine months, indicating that the market is overdue for a correction [2] - The firm is increasingly focusing on the energy sector, predicting that while prices may remain flat or decline this year, they could rise starting in 2027 [2] Investment Recommendations - Goldman Sachs has identified five top stocks for investors to consider, particularly emphasizing two companies in the energy sector that are expected to perform well in the future [3] - The firm maintains its status as a premier financial institution, being the go-to bank for a wide range of financial needs over the past 15 years [4] Stock Highlights - **Brixmor Property Group**: This REIT offers a 4.31% dividend and has a target price of $32, indicating a 23% upside potential [5][7] - **Duke Energy**: An electric power and natural gas holding company with a 3.52% dividend and a target price of $141, representing a 20% gain from current levels [8][9] - **Hershey**: A snacks company with a 2.77% dividend and a target price of $220, suggesting a 21% potential increase [10][13] - **Johnson & Johnson**: A diversified healthcare company with a 2.31% dividend and a target price of $240, indicating a 16% upside [14][16] - **Valero Energy**: A multinational manufacturer of petroleum products with a 2.43% dividend and a target price of $197, representing a 19% gain [17][20]

Core Viewpoint - Duke Energy is preparing for Winter Storm Fern, which may lead to significant power outages across the Carolinas, and is urging customers to take safety precautions and prepare for potential disruptions [1][6][7]. What Duke Energy is Doing - The company is mobilizing over 18,000 workers, including lineworkers and tree crews, to respond to the storm as soon as conditions are safe [6]. - Duke Energy is staging equipment in key areas and setting up mobile command centers to ensure a rapid response [6]. - The company is coordinating with local and state emergency management officials to enhance preparedness [6]. What Customers Should Do Right Now - Customers are advised to prepare an emergency kit, charge phones, and gather essential items like flashlights and batteries [6]. - The enhanced American Red Cross Emergency app is recommended for emergency checklists and weather alerts [6]. - Customers should download or update the Duke Energy smartphone app and confirm their account login information to receive outage alerts [6]. What Customers Should Expect - Winter Storm Fern could bring hazardous conditions, including snow, sleet, and freezing rain, leading to potential power outages [6]. - Restoration efforts may be delayed due to hazardous travel conditions and blocked roads [6]. - Despite grid improvements, severe weather can still cause extended outages, particularly in areas with downed trees or debris [6]. Company Overview - Duke Energy serves approximately 4.7 million electric customers in the Carolinas, with about 3.8 million in North Carolina and nearly 860,000 in South Carolina [6]. - The company is one of America's largest energy holding companies, serving 8.6 million customers across multiple states and owning 55,100 megawatts of energy capacity [8]. - Duke Energy is focused on an ambitious energy transition, investing in electric grid upgrades and cleaner energy sources [9].

Core Insights - The recent tariff noise is impacting the market, and investors are advised to focus on long-term investment themes rather than reacting to headlines [1][7] Market Performance - In 2025, markets initially fell nearly 15% by April due to tariff fears, but those who remained invested saw a 39% rebound by year-end, highlighting the importance of long-term trends [2] Investment Opportunities - Investors should prioritize long-term growth opportunities, particularly in the AI sector, with trillions expected in infrastructure investments by 2030 [3] - Comfort Systems USA Inc. (NYSE:FIX) and Duke Energy Corp. (NYSE:DUK) are highlighted as stable investment options, with Duke trading at 17X forward earnings and offering a 3.7% dividend yield [4] Promising Sectors - Aerospace and defense sectors are expected to benefit from rising global military budgets, while small-cap biotech is positioned to gain from patent cliffs and M&A activity [5] - Notable companies in these sectors include L3 Harris Technology Inc. (NYSE:LHX) in defense and Indivior PLC (NASDAQ:INDV) and Day One Biopharmaceuticals Inc. (NASDAQ:DAWN) in biotech [5] Future Market Outlook - In 2026, investors who align with their risk tolerance and "follow the money" may find attractive entry points despite ongoing market volatility [6] - Current market conditions are turbulent due to renewed tariff threats, with the S&P 500 and Nasdaq 100 both sliding around 2%, marking their worst sessions in over three months [7][8]

Core Insights - The demand for clean electricity is accelerating globally, driven by structural trends and technological advancements, making utility companies like AES Corporation and Duke Energy attractive investment opportunities due to their strong positioning in the energy transition [1] Group 1: Industry Trends - The rapid expansion of AI-powered data centers is a major catalyst for increased electricity demand, requiring substantial and consistent power loads [2] - U.S. electric utilities are evolving beyond traditional income sources due to climate measures and federal incentives, positioning themselves for steady growth in the clean energy market [3] - Utilities are expanding generation capacity and grid infrastructure to meet rising electricity consumption, particularly from data centers [10] Group 2: AES Corporation - AES is benefiting from the growing demand from data centers, securing long-term contracts (PPAs) and positioning itself as a key partner in the tech industry's expansion, with 2.2 GW of signed contracts, including 1.6 GW with data center customers [4][5] - AES has a project backlog of 11.1 GW under signed PPAs and has completed 2.9 GW of construction as of September 30, 2025 [4] - AES has a forward P/E of 6x and a dividend yield of 4.96%, alongside a long-term earnings growth rate of 11.17% [10][15][16] Group 3: Duke Energy - Duke Energy is proposing new rate structures to efficiently manage large data center loads, which will accelerate necessary grid upgrades [6] - The company filed a request with the North Carolina Utilities Commission to revise electric rates to secure funding for significant grid upgrades, focusing on providing reliable and scalable power for data centers [7] - Duke Energy's Zacks Consensus Estimate for 2026 EPS indicates a year-over-year rise of 6.15%, with a long-term earnings growth rate of 6.87% [9][12] Group 4: Comparative Analysis - AES has a higher return on equity (ROE) of 18.83% compared to Duke Energy's 9.98%, indicating more efficient utilization of shareholders' funds [13] - Both companies have high debt levels, with AES at 78.58% and Duke Energy at 61.97%, compared to the industry average of 61.42% [14] - AES is preferred over Duke Energy due to its stronger long-term earnings growth, higher ROI, more attractive dividend yield, and better valuation metrics [19]

Industry Overview - Nuclear energy is experiencing a resurgence in the United States due to increased demand driven by artificial intelligence, favorable government policies, and shifting public perception [1] - Investments in nuclear power are long-term commitments, as building new reactors takes years and their operational lifespan can extend up to 80 years [2] Company Analysis: Cameco - Cameco is the second-largest uranium miner globally, producing 17% of the world's uranium consumed in 2024 [4] - The company has a market capitalization of $49 billion and a current stock price of $116.38, with a gross margin of 26.65% and a net income margin of 15.18% [5][6] - Cameco's revenue has a three-year compound annual growth rate (CAGR) of 24.18%, and its stock has increased by 124% over the past 12 months, outperforming the S&P 500 [6] - The annual dividend is $0.17 per share, yielding 0.16%, which is considered low for a dividend stock despite a history of slight growth over the past two years [6][12] Company Analysis: Duke Energy - Duke Energy operates 11 nuclear reactors across six plants in the Carolinas and has a diverse energy production portfolio [8] - The company has a market capitalization of $92 billion and a current stock price of $119.22, with a gross margin of 32.12% and a net margin of 15.97% [9][10][11] - Duke Energy's revenue has a three-year CAGR of 5.29%, which is slower than Cameco's, but it maintains a strong dividend yield of 3.65% with an annual dividend of $4.26 per share [11][12] - The southern U.S. is experiencing significant population growth, which is expected to drive demand for Duke's power services [10]

Core Insights - Piedmont Natural Gas is providing resources and assistance programs to help customers manage energy bills during colder temperatures in the Southeast [1] Energy Management Tools - Piedmont offers an Equal Payment Plan (EPP) that allows customers to pay a predictable monthly amount based on their annual natural gas usage, helping to avoid billing surprises [3] - Customers can access their gas usage history online to identify trends and potential savings opportunities [8] Financial Assistance Programs - The Share the Warmth program provides funds to local agencies to assist families with utility bills, regardless of the energy source [4] - The Low Income Home Energy Assistance Program (LIHEAP) offers financial assistance for natural gas, electric, and other energy sources used in homes [4][5] Energy-Saving Tips - Recommendations include setting thermostats to lower settings, using smart thermostats, and managing water heater temperatures [8] - Customers are advised to seal their homes and regularly change air filters to improve energy efficiency [8]

Core Perspective - Duke Energy is focused on assisting customers in managing energy costs during the winter months, particularly in January when energy usage peaks due to heating demands [1][3]. Energy-Saving Programs - The company offers easy-to-join programs such as Power Manager, EnergyWise Home, and Flex Savings Option, which help customers save on energy bills [2][3]. - Approximately 520,000 customers in the Carolinas are already benefiting from these programs, earning bill credits and saving energy [3]. Customer Engagement and Support - Duke Energy aims to provide support and confidence to customers regarding their energy choices during winter [3]. - The company encourages customers to combine its programs with practical energy-saving tips to maximize savings [3][8]. Company Overview - Duke Energy is a Fortune 150 company serving 8.6 million electric customers and 1.7 million natural gas customers across several states, with a total energy capacity of 55,100 megawatts [5]. - The company is actively investing in electric grid upgrades and cleaner energy generation methods, including natural gas, nuclear, renewables, and energy storage [6]. Incentives for Energy Efficiency - Customers can receive a $150 initial bill credit and an annual $50 credit by enrolling a qualifying smart thermostat [7][8]. - The Flex Savings Option allows customers to lower energy costs by shifting their energy use to off-peak times [8].

Core Viewpoint - Duke Energy Corporation is a significant player in the energy sector, focusing on sustainable energy solutions and showing resilience in a challenging market environment [1][2][5] Stock Performance - Duke Energy's stock closed at $118.68, reflecting a 1.1% increase from the previous day, while major market indices experienced declines [2][4] - Over the past month, Duke Energy's shares have risen by 1.56%, outperforming the Utilities sector, which saw a loss of 1.94% [3] - The stock has traded between a low of $117.35 and a high of $119.29 in the latest session, with a yearly high of $130.03 and a low of $105.90 [4] Market Analysis - Barclays set a price target of $127 for Duke Energy, indicating a potential upside of approximately 7.01% from the current trading price [1][5] - The company has a market capitalization of approximately $92.29 billion and a trading volume of 4,554,763 shares [4] Earnings Expectations - Analysts expect Duke Energy to report earnings of $1.54 per share for the upcoming earnings report on February 10, 2026, which represents a year-over-year decrease of 7.23% [3] - There is an anticipated 4.11% increase in quarterly revenue to $7.66 billion [3][5]