Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Exclusive News
3 Energy Stocks to Buy as AI Power Demand Surges—and 2 to AvoidSubmitted by Bridget Bennett. Article Published: 4/5/2026. 
Key Points
- Mastec, Regal Rexnord, and EQT are positioned to benefit from a multi-year AI and energy infrastructure buildout that analysts say is only in its early innings
- Coreweave and Oklo face serious profitability concerns under uniform accounting analysis, with market expectations far exceeding what their business models can deliver
- Natural gas remains the most viable near-term power source for data centers, while small modular nuclear reactors are still five-plus years from commercial viability in the United States
- Special Report: Elon Musk already made me a “wealthy man”
The biggest names in energy and technology are all in the same room this week—and the conversation isn't about oil prices; it's about electricity. That distinction matters. Often dubbed the "Super Bowl of energy," CERAWeek is the world’s premier annual energy conference, where the major players convene in Houston, Texas, to discuss global energy markets, geopolitics, and technology.
For a moment…
Forget about Trump’s ties to Israel.
Forget about reports of Iran’s nuclear program.
Because my research has led me to believe we’re risking World War 3 with Iran for a completely different reason. Click here to find out what it is.
This year, speakers from Amazon Web Services (NASDAQ: AMZN), Alphabet's Google (NASDAQ: GOOGL), Microsoft (NASDAQ: MSFT), NVIDIA (NASDAQ: NVDA), and Meta (NASDAQ: META) shared the stage with legacy energy producers, and the dominant theme was power demand. Altimetry Research’s Joel Litman and Rob Spivey highlighted one major takeaway from the conference: the United States isn't energy-independent when it comes to electricity, and the AI-driven buildout could take five to ten years. That creates a specific, investable opportunity—and several traps worth avoiding. U.S. Electricity Demand Is Outpacing the GridFor roughly 15 years, U.S. electricity usage barely moved even as GDP grew. That trend began to change around 2022. Even before the latest geopolitical concerns in the Middle East, power demand was already rising. Reindustrialization, the proliferation of data centers, and the growth of AI computing have pushed consumption sharply higher. Data center demand alone could account for as much as 10% of total U.S. usage, and the infrastructure to support it largely doesn't exist yet. That's the tension CERAWeek exposed. Energy producers and AI hyperscalers are negotiating who will build capacity—and who will pay for it. Residential electricity rates still exceed commercial rates on a per-kilowatt-hour basis, a dynamic that could become politically combustible heading into November's elections. Companies that need reliable power may be forced to buy at market prices or go off-grid entirely, which would only accelerate total demand. 3 Stocks Positioned to Profit From the AI Power Buildout1. MasTec: The Builder Behind the BuildoutMasTec (NYSE: MTZ) is an engineering, procurement, and construction firm that builds power plants, lays fiber-optic cable, and constructs data centers. Its client list reads like a who's who of the energy-AI convergence: Kinder Morgan (NYSE: KMI), Duke Energy (NYSE: DUK), AT&T (NYSE: T), IBM (NYSE: IBM), and Microsoft. What makes the investment case compelling is what standard reporting misses. Altimetry estimates MasTec is roughly twice as profitable as reported metrics imply. The company carries an approximately $19 billion backlog, giving it several years of revenue visibility. Management guided to $17 billion in 2026 revenue, implying 19% growth, and adjusted earnings per share (EPS) of $8.40. The record $18.96 billion 18-month backlog lends credibility to that outlook. The market, however, appears to be pricing MasTec for a normal economic cycle rather than a multi-year infrastructure supercycle. That disconnect is the opportunity. Altimetry's "doubles that double again" research found that, in a bull market, stocks that have already doubled carry roughly a 50% chance of doubling again; after applying uniform accounting filters, that probability can rise toward 60%. 2. Regal Rexnord: Solving the Power Problem Inside the Data CenterRegal Rexnord (NYSE: RRX) tells a different story. Historically known for motors and industrial components, the company has moved up the value chain into data center power-management systems, and the market hasn't fully priced that shift. The key product is the E-Pod, a modular, plug-and-play power-management system about the size of a shipping container. It steps down and manages the electrical load entering a data center so high-value chips from NVIDIA and Micron (NASDAQ: MU) are protected from damage. In Q4 2025, the company secured orders worth approximately $735 million for multiple E-Pod projects. Its broader data center business could reach $1 billion in revenue over the next two years, up from roughly $120 million today. Regal Rexnord's return on assets has risen about a third in recent years as it shifted toward higher-margin solutions. But reported metrics don't fully capture that transformation. Recent stock volatility—driven partly by geopolitical jitters and recurring "AI spending is over" headlines—may offer an attractive entry point. Importantly, this AI investment cycle looks very different from the dot-com bubble. In 1998 and 1999, capital flowed to companies with little or no revenue. Today, spending is coming from cash-rich hyperscalers with unmet demand. Microsoft's Satya Nadella has said Azure would generate more revenue if the company simply had more power and more data centers. 3. EQT: The Natural Gas Bridge That Funds the FutureEQT (NYSE: EQT) is the largest natural gas exploration and production company in the United States, and Altimetry calls it a crucial near-term cog in the AI power story. The logic is straightforward: while nuclear and renewables offer long-term potential, natural gas is the only viable baseload source that can be deployed at scale within the next five years. Solar doesn't run at night, wind is intermittent, and battery storage typically provides only two to four hours of extended capacity—far short of overnight demand. If the U.S. must rapidly add new power plants for data centers, many of those plants will run on natural gas. EQT holds nine years of reserves without drilling a new well and 12 years of proven reserves if it increases activity. Its vertical integration makes it one of the country's lowest-cost producers at about $2 per MMBtu. Management guided to roughly $6.5 billion in 2026 adjusted EBITDA and $3.5 billion in free cash flow. The company is also unhedged for 2026—a deliberate bet by management that natural gas prices will rise. The dual catalysts are domestic power demand and LNG exports. Geopolitical disruption in the Middle East strengthens the case for U.S. energy exports, giving EQT upside on both fronts. Stock volatility reflects short-term geopolitical skittishness, not necessarily a fundamental problem; it could represent a buying opportunity. 2 AI Power Plays That Look More Like Hype Than Opportunity1. CoreWeave: The WeWork of AI?Now for names to avoid. The first is CoreWeave (NASDAQ: CRWV). Altimetry's comparison is blunt: CoreWeave resembles the WeWork story within the AI boom. The pitch sounds compelling: CoreWeave builds and operates data centers tailored to AI workloads. But Altimetry argues the company functions economically like a data-center REIT with a polished brand, and it has not demonstrated consistent profitability. The company reported a negative 22.74% profit margin and a negative 50.27% return on equity. Yet the market appears to be pricing CoreWeave for a return on assets north of 25%—roughly five times what comparable data center operators typically achieve. It carries a large debt load (about $29.8 billion), a 0.46 current ratio, and 16.5% short interest. Even with surging revenue, capital expenditures are expected to more than double in 2026, which will constrain any path to near-term profitability. Altimetry believes that while headline metrics can be spun to suggest future profits, the underlying economics tell a different story. CoreWeave's economic profit has been negative since going public, and Altimetry doesn't see a near-term reason for that to change. 2. Oklo: A Cool Idea Still Years Away From RealityAltimetry's critique isn't of nuclear energy broadly—it's of Oklo (NYSE: OKLO) specifically. The small modular reactor company captured investor attention with a partnership with Meta and backing from Sam Altman, but it trails at least two competitors (NuScale (NYSE: SMR) and BWXT (NYSE: BWXT)) on the technology curve. More importantly, the business model is misunderstood: Oklo doesn't plan to sell reactors; it plans to build them and lease the power, making it financially more like a leasing business with returns tied to its cost of capital. The math is challenging at current pricing. New-build nuclear power costs roughly $200 to $250 per megawatt-hour, while hyperscalers are currently contracting power in the mid-hundreds per megawatt-hour. The market, meanwhile, appears to be pricing Oklo for $400 million to $500 million in earnings even though the company is currently losing about $100 million per year. Oklo has roughly $1.2 billion in cash and marketable securities, which provides runway, but a cash cushion doesn't change the economics of a leasing model that may never deliver the returns investors are pricing in. If the small modular reactor thesis ultimately proves out, Altimetry suggests watching BWXT. BWXT already manufactures key components for U.S. Navy reactors, generates revenue today, and carries less speculative premium. Where Power Meets ProfitThe through-line across these names is clear: the AI power buildout is real, large, and still early. But not every company riding the narrative merits investor capital. Firms with proven demand, deep backlogs, and underappreciated profitability—MasTec, Regal Rexnord, and EQT—look positioned to capture years of growth. Companies trading on hype and venture packaging—CoreWeave and Oklo—could leave investors with costly lessons. The real signal from CERAWeek isn't about any single stock. It's that the convergence of energy and AI is now the defining investment theme of this cycle, and the companies that physically build, power, and fuel that infrastructure may be the most direct way to play it. |
