Josh Brown Adds Dominion Energy to 'Best Stocks in the Market' List

Dominion Energy: A New Growth Stock

• 💡 Dominion Energy (D) is highlighted as a new addition to Josh Brown's "Best Stocks in the Market" list.
• 🎯 The company is crucial for supplying electricity to Lowden County, Virginia, the hub for 70% of global internet traffic.

Driving Demand: Data Centers and AI

• 🚀 Amazon has committed $52 billion to $87 billion in the region for data center expansion through 2040, significantly increasing electricity demand.
• 📈 Nine of Dominion's top 10 peak electricity demand days have occurred this year, underscoring the surge in power needs.
• ⚡ The narrative is shifting: "There is no AI without electricity," driving demand and potential rate increases for utilities.

Stock Performance and Catalysts

• ✅ The stock is nearing a breakout above historical resistance at $60-$61.
• 📈 A "golden cross" (50-day moving average above 200-day) is observed, indicating positive technical momentum.
• 💰 A key catalyst is an upcoming rate case decision in September, which could further boost the stock if regulators approve rate increases.
• ⚠️ A risk-management pivot point is identified at $50.

Shifting Investor Perception

• 📊 Traditionally viewed as defensive, utilities like Dominion are now being recognized as new growth stocks due to AI-driven demand.
• 💰 The stock offers a 4.5% dividend yield, appealing to both traditional and growth-oriented investors.
• 🧩 The realization that significant power generation growth is needed to meet demand is a secular trend.

Related Utility Investments

• 🛠️ Atmos Energy is also highlighted as a strong utility investment, technically sound and up nearly 50% over five years.
• 🌱 Natural gas is seen as a key component in filling the power generation void for these utility companies.