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Stock impact report

Why BofA are buyers of weakness in this sector [Yahoo! Finance]

Constellation Energy Corporation - When-Issued (CEG) 
Company Research Source: Yahoo! Finance
for U.S. power and utilities, arguing that recent pullbacks are creating attractive entry points in parts of the sector. In its 2026 outlook, BofA said it expects a shift away from broad-based gains toward names that can balance growth and affordability in a more challenging political and regulatory backdrop. Foweler noted that while utility valuations appear “23% rich versus historical bond relationships,” that premium “normalizes to just 4% overvalued” when accounting for higher growth rates and BofA's expectation for “75bps of rate cuts in 2026.” The analyst added that Fed easing “typically supports utility relative outperformance,” even if a yield curve inversion could temper that tailwind. Against that backdrop, BofA said it “remain[s] buyers of weakness in power stocks,” highlighting Constellation Energy, Talen Energy and Vistra as its preferred names. The firm noted that its preference is ordered by relative risk, with CEG, TLN and VST offering attractive upside drive Show less Read more
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