By Doug Busch

Everyone's talking about utility stocks and increasingly, the charts are backing up the buzz.

Utilities were the second-best performing of 11 major S&P 500 sectors for the week ending Sept. 25. The Utilities Select Sector SPDR is up 15% year to date, trailing the Technology Select Sector SPDR's 21% gain, but continuing to fly under the radar -- the Rodney Dangerfield of sectors, still getting no respect.

Technically, the ETF has been rising steadily, with a July breakout above a bullish inverse head-and-shoulders pivot at $82.50 that was successfully retested in early September. More recently it broke above a double-bottom-with-handle breakout at $87.20 on Sept. 24. With a solid 2.65% dividend yield complementing its upward momentum, the setup offers a compelling blend of income and price appreciation. The chart now suggests a potential path toward the $95 level by year end.

The Utilities Select Sector SPDR traded at $86.69 Tuesday.

Entergy, a regulated utility serving the southeastern U.S., has climbed 23% year to date and offers a 2.7% dividend yield. The stock broke out above a cup-base pivot at $88.48 on July 22, following a period of healthy consolidation after a powerful 26-of-32-week winning streak between July 2024 and February. On Monday, the stock notched a new 52-week high, clearing a bull flag breakout that coincided with the very round $90 number. The technical setup points to a potential move toward $100 by year end, with the bullish narrative intact as long as the stock holds above $89.

Entergy traded at $92.05 Tuesday.

Sempra, a diversified utility play, is having a relatively modest 2025, up just 2% so far, while offering a 2.9% dividend yield. However, recent price action suggests a potential turning point. Over the last three months, the stock has gained 18%, significantly outperforming the Utilities Select Sector SPDR ETF, which is up 7% over the same period. On the weekly chart, Sempra jumped 6.5% for the period ending Sept. 15, marking its best weekly gain since January. More importantly, the stock closed above the key bearish engulfing candle from the week ending Feb. 28, when shares fell 18% on the back of an earnings miss and lowered guidance. The stock also cleared a double-bottom breakout at $87.70, and a move toward the very round $100 number by year end appears achievable.

Sempra Energy traded at $89.37 Tuesday.

For investors seeking international exposure, Companhia de Saneamento Basico do Estado de São Paulo ADR, a Brazilian regulated water utility, presents a compelling case. The stock has surged 71% this year, doubling the advance of the iShares MSCI Brazil ETF, with a 2.7% dividend yield. It currently sits just 2% below its 52-week high, after a modest pullback last week that ended an impressive eight-week winning streak.

Technically, the stock has been a strong performer over the past year, with a well-formed cup-with-handle breakout in mid-March followed by a clean breakout above a bull flag at $22.75. Notably, the flagpole began with a sharp 12% gap up on Aug. 12 after its fifth straight positive earnings reaction completed a bullish island reversal. With momentum building, a move toward $28 by year end is in play. Traders may look to enter on a pullback near $23.50, with the technical picture remaining constructive as long as the stock stays above $21.

SABESP ADR traded at $24.73 Tuesday.

Write to Doug Busch at douglas.busch@barrons.com

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September 30, 2025 12:15 ET (16:15 GMT)

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