Josh Brown's "best stocks in the market:" Utilities

Watch on YouTube ↗  |  January 20, 2026 at 18:20  |  3:27  |  CNBC
Speakers
Josh Brown — CEO, Ritholtz Wealth Management
Brian Belski — Chief Investment Strategist, BMO Capital Markets

Summary

CNBC Halftime Report panel discusses Josh Brown's "best stocks in the market" theme on utilities. Brown argues the sector's pullback creates opportunity after utilities became an unexpected AI/data-center power trade, and he highlights AEP, NextEra Energy, and Sempra. Brian Belski adds that he is overweight utilities for 2026 as a great AI play, with NextEra Energy a holding he has been adding to.

  • Josh Brown spotlights utilities as a best-stocks theme.
  • Utilities nearly matched S&P 500 total return last year due to AI power demand.
  • A roughly 10% sector pullback is seen as creating opportunities.
  • Brown rates AEP as strong but prefers NextEra and Sempra.
  • Sempra is Brown's favorite of the three, with a $100 target.
  • Brian Belski is overweight utilities for 2026 as an AI play.
  • Belski has owned and been adding to NextEra Energy.
  • Southern Company, CenterPoint Energy, and mid-cap utilities are mentioned without full standalone theses.
Ideas
Josh Brown CEO, Ritholtz Wealth Management 0:28
Utility pullback creates AI-driven opportunity.
The utility sector nearly matched the S&P 500's total return last year, surprising because a historically defensive sector became part of the AI trade. After a roughly 10% pullback, he sees opportunities in the group, especially in names with data-center power exposure.
UTILITIES HIGH
Josh Brown CEO, Ritholtz Wealth Management 1:14
AEP holds up but not preferred.
American Electric Power is technically and fundamentally strong with a 3.12% dividend and is holding above its 200-day moving average, but he would not buy it himself because he prefers other utility names.
AEP MED
Josh Brown CEO, Ritholtz Wealth Management 1:34
NextEra technical support, data-center power exposure.
NextEra Energy looks better than AEP, with half its business in Florida Power & Light and half in clean energy and other resources important for data-center power. He sees 78 as key support; if it holds, the stock is fine, with 87-88 as next resistance.
NEE HIGH
Josh Brown CEO, Ritholtz Wealth Management 2:08
Sempra favorite; buy now, $100 target.
Sempra is his favorite of the three utility names, combining California and Texas electric and natural-gas operations. He says it can be bought right here as it triggers its 50-day moving average, and he sees it going to $100.
SRE HIGH
Brian Belski Chief Investment Strategist, BMO Capital Markets 2:37
Utilities are great AI overweight play.
He is positioned to overweight utilities in 2026, a sector he had avoided for a long time because of heavy debt, and he views utilities as a great AI play. He owns and is adding to NextEra Energy and also holds Southern Company, CenterPoint Energy, and some mid-cap utilities.
UTILITIES HIGH
Brian Belski Chief Investment Strategist, BMO Capital Markets 2:54
Adding NextEra as utilities AI play.
NextEra Energy is a core utility AI-play holding: he bought it in 2020 after a big pullback when it was a hedge fund darling, has owned it since, and has been adding slowly.
NEE HIGH
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This CNBC video, published January 20, 2026, features Josh Brown, Brian Belski discussing UTILITIES, AEP, NEE, SRE. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Josh Brown, Brian Belski  · Tickers: UTILITIES, AEP, NEE, SRE