Wolfe Smart Utility Vehicle (SUV)

Research evidence excerpt

Wolfe Smart Utility Vehicle (SUV)

Utilities

Utilities/Regulateds – Market Overweight

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June 30, 2026

WOLFE SMART UTILITY VEHICLE (SUV)

Midyear recap vs expectations

Link: Utility Comps | Utility Stock Charts | Models

Utilities sentiment meter

Up to “6” from “5”. Utilities continued their mid-year comeback and ended the week in line with the market YTD as

the momentum trade seems to be waning. That said, election and affordability issues keep getting louder in the

sector. Last week it was Indiana’s turn again as the Gov. removed the IURC Chair he just named 6 months ago

complaining about the AES IPALCO rate order and not enough being done on affordability. We expect the

affordability noise to keep growing into the election. In IPPs, the Calpine holders lock-up on CEG shares expires for

the remaining 14M shares of the first tranche not sold last month. This has continued to be an overhang on CEG

stock.

Midyear recap of our top 10 issues to watch in 2026 for utilities; how are we tracking?

We wanted to see whether our top 10 issues (note) to watch heading into 2026 are playing out as expected or

whether there have been key surprises. Below is each issue, as written at the time, shaded in gray, followed by a

few bullets on each, written in blue font. Overall, we are not surprised utilities are lagging, given their history when

the S&P 500 is up over 10% (9.6% YTD). And several of the key themes are playing out largely the way we

expected, particularly on data center upside, CAGR raisers, equity needs, and stock moves at even the hint of

affordability pushback, though there have been some surprises on the states. On power markets, PJM is still looking

for solutions, but FERC has been more supportive. Among key events, offshore wind challenges have been resolved