North American Utilities Attributing YTD Stock Performance to Multiple Expansion vs EPS Revisions: PPL and SRE Screen as Possible Catch-Up Trades

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North American Utilities Attributing YTD Stock Performance to Multiple Expansion vs EPS Revisions: PPL and SRE Screen as Possible Catch-Up Trades

J P M O R G A N North America Equity Research

27 May 2026

North American Utilities

Attributing YTD Stock Performance to Multiple

Expansion vs EPS Revisions: PPL and SRE Screen as

Possible Catch-Up Trades

Given wide dispersion in year-to-date performance, we receive questions on which Head of North America Power,

names have been left behind or have run too hard. Looking into this question, we Utilities, Midstream, LNG, and

break down the YTD share price appreciation between 1) P/E multiple expansion Nuclear

and 2) consensus EPS estimate changes for 2028 and 2029. We note limitations to Jeremy Tonet, CFA AC

this screen, but see the analysis as a helpful tool to evaluate which names have (1-212) 622-4915

benefited from multiple expansion more than positive EPS revisions. Broadly, we jeremy.b.tonet@jpmorgan.com

see limited EPS revisions for the group in general (+1% for the regulated large-cap Aidan C Kelly AC

group), with share price appreciation largely attributable to multiple expansion for (1-212) 622-4912

aidan.x.kelly@jpmchase.com

the group.

Diana Niles

• Don’t call it a comeback: PPL & SRE positioned for catch-up. While the (1-212)diana.niles@jpmorgan.com622-3328

large-cap electric 2029 P/E group median expanded 7% at the median, PPL’s

North American Midstream multiple increased only 2%, moving from in line to below the group median.

While we recognize concerns over PA following the governor’s utility-targeted Eli Jossen, CFA AC

affordability rhetoric, we see upside opportunity at PPL and expect a PA (1-212) 622-4113

eli.jossen@jpmchase.com

settlement approval without any meaningful changes. We also see a Genco JV J.P.