Adding to This Portfolio Power Pain Point Play
Electric utilities see data center demand driving demand, and we see capital spending rising .
You've reached your free article limit
You've read 0 of 1 free Pro articles.
| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
ETN | Buy | 110 | 291 | 300 | 2.0 |
After you receive this Alert, we will buy 110 shares of Eaton Corp. ETN at or near $291. Following the trade, ETN shares will account for roughly 2.0% of the portfolio.
We are building up the portfolio’s exposure to ETN this morning because U.S. electric utilities have raised their 2030 guidance of cumulative data center electricity demand by roughly 50%. Duke Energy DUK said that of its economic development pipeline through 2028, data centers represent about 25%. Moving out to 2030 and beyond, that category accounts for 25%.
What this means is electric utilities will need to revisit capital spending plans to expand capacity but to also update their infrastructure. In the next few months, as electric utilities such as American Electric Power AEP turn to their capital spending plans for 2025 and beyond, we should see those figures reflect the ramping capital spending at Alphabet GOOGL, Meta Platforms META, Amazon AMZN, Microsoft MSFT and others.
The better-than-expected July Producer Price Index supports the Fed starting a rate-cutting cycle, and that should lead to more favorable project hurdle rates, another factor that may support electric utility capital spending decisions.
More Pro Portfolio:
- We're Initiating a New Position in This Oversold Bullpen Stock
- Weekly Portfolio Roundup: Opportunity Was the Name of the Game
- We've Got the Scoop on Our Stocks
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long ETN, GOOGL, META, AMZN and MSFT.
