This AI dark horse sector keeps winning. Stick with the trade, analyst says

Investors should continue favoring the winning stocks within the utilities sector, despite the recent cool-off in the rally, according to Wolfe Research. The S & P 500 sector added just over 2% in April. By comparison, the broad index as a whole climbed over 10% for its biggest monthly gain in more than half of a decade . But the sector is up more than 8% for 2026, outpacing the S & P 500's gain of around 5%. "Investor dollars hurried back into tech and growth sectors and out of defensive utilities," Wolfe senior analyst Steve Fleishman said in a Sunday note to clients. Still, utilities "remain 400bps ahead of the market for the year." Fleishman said the story for the sector is that "winners keep winning." Wolfe highlighted the best performers so far this year: Fleishman pointed to Entergy , which has led the sector higher this year with a climb of more than 27%. Entergy is on track for its third straight positive year. The New Orleans-based company announced an additional deal with Meta in March and r aised its long-term forecast , Fleishman said. He also noted that the company is tracking to see a compound annual growth rate for earnings of 13% between 2026 and 2030 — a percentage that he said is "unheard of" for a regulated utility. ETR YTD mountain Entergy, year to date The majority of analysts have a buy rating on Entergy, according to LSEG. The average price target implies shares can add around 4% over the next 12 months. …