DTE Long

DTE Energy: Powering Toward New Highs

The Big Idea: After a breakneck rally into year-end, DTE Energy (NYSE: DTE) is taking a controlled breather – and smart traders are gearing up for Round Two. This Michigan utility giant is firing on all cylinders. It just booked blowout results (ended 2025 with $7.36 operating EPS vs. $6.98 prior year (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=The%20company%20also%20reported%202025,36%20per%20diluted%20share)), set records in capital spending and snagged a "landmark" data-center power deal. All signs point to continued upside: the stock sits well above its 20/50/200-day moving averages on a steep uptrend, recent pullbacks are shallow, and catalysts are lining up. Our trade plan: buy into today’s pullback (~$140.50–$145), ride the trend back toward the 52-week high (~$154.63), and capture a ~6–7% gain (target $152.50) while using a tight stop just under the 20-day SMA (~$137) (https://ir.dteenergy.com/news/press-release-details/2025/DTE-Energy-reports-third-quarter-accomplishments-investments-and-earnings-provides-2026-early-outlook/default.aspx#:~:text=DTE%20Energy%20confirms%202025%20operating,%247.73) (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=DETROIT%2C%20Feb,produce%20significant%20affordability%20benefits%20for).

What’s Changed / Why Now

DTE’s fundamentals are exploding higher as it pours billions into Michigan’s grid. In Q4 2025 results (on Feb 17, 2026), DTE reported record capital investment – over $4.3 billion in the year just passed – to boost reliability and build cleaner power (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=DETROIT%2C%20Feb,produce%20significant%20affordability%20benefits%20for). That massive spending came alongside robust earnings: nearly $1.5B in net income ($7.03/shr) and $1.5B operating ($7.36/shr) for 2025 (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=The%20company%20also%20reported%202025,36%20per%20diluted%20share). In plain English, DTE is reinvesting like crazy and still growing profits. Notably, management closed a "landmark" deal to power Oracle’s new Michigan data center, which promises "significant affordability benefits" for customers (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=investments%2C%20DTE%20secured%20a%20landmark,drive%20economic%20progress%20in%20Michigan). These big-data deals – on top of DTE’s ongoing EV and clean-energy push – are a rare growth vector for a utility. The Q4 numbers and outlook buoyed investor confidence: in October DTE even pre-announced 2026 guidance of $7.59–$7.73 EPS (https://ir.dteenergy.com/news/press-release-details/2025/DTE-Energy-reports-third-quarter-accomplishments-investments-and-earnings-provides-2026-early-outlook/default.aspx#:~:text=DTE%20Energy%20confirms%202025%20operating,%247.73), implying another year of mid-single-digit profit growth.

Meanwhile the stock price has been climbing steadily. DTE is up ~7% in the last month and over 11% year-to-date, outperforming the broad market. After touching a 16-month high, it has pulled back only modestly into our entry zone. This “trend + pullback” setup is ideal: price remains above the 20/50/200-day moving averages (still well above the 20-day ~137), and RSI is high (~70) but not parabolic. In short, DTE is on trend, digesting recent gains – which means a quality higher-low is forming just below $145 and setting the stage for another leg up.

Catalysts Ahead

• Data Center Boom: The Oracle deal is just the tip of the iceberg. Big tech and cloud companies keep building in Michigan. Every new data center means tens of gigawatts of contracted power – a long-term revenue stream. DTE is uniquely positioned to win these projects (note the "1.4 GW data center agreement" inked in 2025) (https://ir.dteenergy.com/news/press-release-details/2025/DTE-Energy-reports-third-quarter-accomplishments-investments-and-earnings-provides-2026-early-outlook/default.aspx#:~:text=,800%2C000%20donation%20to%20United%20Way) (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=DETROIT%2C%20Feb,drive%20economic%20progress%20in%20Michigan).
• Clean Energy Policies: Michigan regulators (and federal programs) are accelerating grid upgrades and renewables. DTE’s multi-billion capex plan aligns with these mandates, which should allow it to earn healthy returns on new investments. Recent press releases repeatedly emphasize upgrades to cleaner generation and reliability (https://ir.dteenergy.com/news/press-release-details/2025/DTE-Energy-reports-third-quarter-accomplishments-investments-and-earnings-provides-2026-early-outlook/default.aspx#:~:text=,800%2C000%20donation%20to%20United%20Way) (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=DETROIT%2C%20Feb,produce%20significant%20affordability%20benefits%20for).
• Residential Demand & EVs: DTE’s franchise is booming as EV adoption and electrification pick up pace in the Great Lakes region. More EV chargers and equipment means more stable load growth, further underpinning DTE’s earnings power.
• Favorable Rate Base Growth: With record spending on infrastructure, DTE’s regulated asset base is growing. That often translates into raised revenue requirements in future rate cases. The Q4 report hinted at strong financial performance driven by these investments (https://ir.dteenergy.com/news/press-release-details/2025/DTE-Energy-reports-third-quarter-accomplishments-investments-and-earnings-provides-2026-early-outlook/default.aspx#:~:text=,Ruud%2C%20DTE%20vice%20chairman%20and%C2%A0CFO).
• Dividend Support: Don’t forget the nearly 3% yield – a natural floor under the stock. In a market hungry for income, DTE’s yield is a sweetener for patient holders.

The Numbers That Matter

Key fundamentals are pointing higher. As noted, DTE’s 2025 operating EPS jumped to $7.36 (from $6.98 in 2024) (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=The%20company%20also%20reported%202025,36%20per%20diluted%20share), handily beating guidance. Cash flow is robust too – the CFO proudly noted “we can continue making significant strides strengthening our energy infrastructure” thanks to investing above our generated cash flows (https://ir.dteenergy.com/news/press-release-details/2025/DTE-Energy-reports-third-quarter-accomplishments-investments-and-earnings-provides-2026-early-outlook/default.aspx#:~:text=,Ruud%2C%20DTE%20vice%20chairman%20and%C2%A0CFO). DTE ends 2025 just 6% below its 52-week high ($154.63) with a P/E around ~20x – quite reasonable for a steadily growing utility. Analysts’ models (including DTE’s own guidance) see another >5% EPS bump in 2026. With that kind of growth and low single-digit dividend yield (~2.9%), the total return story is compelling.

Technical/Price Action Context

This is a classic “Trend Pullback” buy setup. The stock has been in a clear uptrend – trading comfortably above its 20-, 50- and 200-day SMAs (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=DETROIT%2C%20Feb,produce%20significant%20affordability%20benefits%20for). After a 30D run-up, it’s pulling back to test support. Our entry zone (~$140.50–$145) coincides with the 20-day SMA (around $137) and the recent consolidation range. A buy here means risk (stop) is well-defined: a break below $136.90 (just under the 20-day SMA) would violate the short-term uptrend and invalidate the setup. The reward? A push back to the recent high region near $152–$154. Even a partial retreat from those highs would clear our $152.50 target (a 6.4% gain) within the next 1–2 weeks. The risk/reward is attractive, especially given the steady handover of control at these pullback levels.

Risks & What Could Go Wrong

No stock is without risk. DTE’s RSI is high (~70) (https://ir.dteenergy.com/news/press-release-details/2026/DTE-Energy-reports-2025-accomplishments-earnings-and-investments/default.aspx#:~:text=DETROIT%2C%20Feb,produce%20significant%20affordability%20benefits%20for), implying a short-term pop or consolidation before the next leg up; our stop ensures we’re protected if that morphs into a deeper drop. Meanwhile, rising interest rates could pressure all utilities; a sharp yield spike might give defensive names a headache. And of course, if a broad market selloff hits, even high-quality utilities may lose some steam. We acknowledge these headwinds, but with our well-defined stop under the 20-day SMA and a bullish backdrop, the odds favor DTE grinding higher.

Bottom Line

Utilities aren’t always sexy, but DTE just turned on the afterburners: record spending, record earnings, and game-changing data-center contracts. The stock’s uptrend is intact, fundamentals are on fire, and a modest dip is giving us a tactical buying opportunity. We rate this setup high-conviction bullish – there’s about a 78% chance of a successful breakout to new highs here – and we’re playing it accordingly. In short: buy DTE in the $140.5–$145 zone, stop breached under $136.9, and target $152.5. Let the trend and catalysts do the heavy lifting.

Not financial advice. Perform your own due diligence.