Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Top Utility Stocks Powering Through Volatility

Utility meter

As U.S. equities have pulled back sharply year-to-date (YTD), the benchmark S&P 500 ETF (NYSEARCA: SPY) has fallen nearly 8% from its 52-week highs. However, specific sectors have held up better than others during this market turmoil.

One such sector is Utilities. While it outperformed the broader market for much of last year, it has declined just over 5% from its 52-week highs as of Friday’s close. From a technical perspective, it remains in a consolidation phase above a rising 100-day simple moving average (SMA) and other shorter-term SMAs, suggesting that bulls are still in control.

If the market stabilizes and stages a rebound, could the Utilities Select Sector SPDR Fund (NYSEARCA: XLU) and the broader utilities sector be primed for a breakout? Let’s look closer at why investors might want to consider gaining exposure to utilities.

What Is the Utilities Sector?

The utilities sector consists of companies that provide essential services, including electricity, natural gas, water, and sewage systems. These companies generate, transmit, and distribute these resources, making them a stable, defensive investment. Due to their necessity in daily life and predictable revenue streams, utilities tend to perform well even during economic downturns.

The sector’s recent relative strength stems from economic uncertainty and market volatility. Investors often turn to utilities for their reliable dividends and traditional safe-haven appeal. Additionally, the global transition to clean energy, such as wind, solar, and electrification, has boosted the sector as utilities play a key role in infrastructure upgrades. 

Rising geopolitical tensions and energy cost fluctuations have further emphasized the importance of domestic reliability. Another factor driving demand is the rapid rise of artificial intelligence (AI). AI-driven technologies require energy-intensive data centers, significantly increasing electricity demand. This trend pressures utilities to expand and innovate to meet growing energy needs.

How Can Investors Gain Exposure?

[content-module:CompanyOverview|NYSEARCA:XLU]

Exchange-traded funds (ETFs) offer a diversified approach for investors seeking exposure to the utility sector without selecting individual stocks.

One of the most popular ETFs is the Utilities Select Sector SPDR Fund (NYSEARCA: XLU)

XLU tracks the price and yield performance of the S&P 500’s Utilities Select Sector, which includes electric utilities, multi-utilities, independent power producers, and gas utilities.

The fund follows a passive investment strategy designed to mirror the performance of its underlying index.

XLU focuses almost entirely on U.S. companies, with 99.9% of its assets allocated domestically. Electric utilities account for 56% within its subindustry exposure, while multi-utilities make up 27%.

The ETF holds an aggregate Moderate Buy rating across 361 analyst ratings covering 31 companies.

It offers an attractive 2.84% dividend yield, with an annual dividend of $2.24 per share.

Favorable Technical Positioning of the Sector

[content-module:CompanyOverview|NASDAQ: QQQ]

Unlike the S&P 500 and tech-heavy Nasdaq ETF (NASDAQ: QQQ), which are trading below their 200-day SMA, XLU has managed to consolidate and maintain its position above this key level.

This signals buyers remain in control, and the ETF is still in an uptrend on a higher timeframe.

If XLU maintains its position above the 200-day SMA, the $80 breakout level could be tested in the coming weeks or months.

A successful move above this resistance zone may confirm a higher-timeframe breakout and signal the start of another upward leg for the sector.

2 Top-Performing Utilities Stocks

[content-module:CompanyOverview|NYSE: DUK]

Here are two of the sector's best-performing names this year for investors who prefer to gain exposure to individual utility stocks rather than ETFs.

Duke Energy (NYSE: DUK) is the third-largest holding in XLU, with a 7.7% weighting.

The stock has surged 10.5% year-to-date, significantly outperforming the sector and the broader market.

The company, a significant electric power and natural gas provider in the U.S., has a 3.5% dividend yield, a price-to-earnings (P/E) ratio of 20.8, and a Moderate Buy analyst rating.

[content-module:CompanyOverview|NYSE: SO]

Southern Company (NYSE: SO) is XLU’s second-largest holding, with an 8.3% weighting.

It is a leading gas and electric utility provider in the southern U.S. Like Duke Energy, Southern Company has significantly outperformed the overall market and sector year-to-date, acting as a defensive play for investors. 

The stock has climbed over 8% YTD compared to the sector's decline.

It has a 3.25% dividend yield, a market capitalization of just under $100 billion, and a Hold rating among analysts.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.