Fortis Inc. (FTS): A Bull Case Theory

We came across a bullish thesis on Fortis Inc. on Danny’s Substack by Danny Green. In this article, we will summarize the bulls’ thesis on FTS. Fortis Inc.'s share was trading at $56.33 as of February 18th. FTS’s trailing and forward P/E were 22.70 and 21.41 respectively according to Yahoo Finance.

Fortis Inc. is positioned as a regulated electric and gas utility delivering predictable, rate-base-driven growth rather than hyper-growth. The company is expected to generate roughly 9% revenue CAGR in the near term, supported by a regulated asset base projected to grow at about 6.5% annually to approximately $53 billion by 2029 through its $26 billion capital plan focused on transmission, distribution, and clean energy infrastructure.

While doubling sales within five years would require nearly 15% CAGR—well above Fortis’s historical 6–9% trajectory and therefore unlikely without a large acquisition—the long-term opportunity remains anchored in decades of grid modernization tied to electrification and renewable integration. Fortis benefits from an impregnable competitive moat through exclusive regulated service territories across Canada, the U.S., and the Caribbean, though this advantage comes with capped returns set by regulators, limiting upside but ensuring stability.

Its conservative culture, evidenced by more than 50 consecutive years of dividend increases, supports financing access and investor confidence, even as utilities typically face slower adaptation to technological shifts. Key risks include regulatory pushback as customer bills rise, high leverage of roughly $48 billion, interest-rate sensitivity, and reliance on external financing given negative free cash flow coverage of dividends.

Short-term concerns around subsidiaries such as UNS Energy and FortisAlberta have also weighed on sentiment. However, as capital deployment expands the rate base, absolute earnings should compound steadily over time. Overall, Fortis represents a stable, defensive utility capable of consistent income compounding, where meaningful sales acceleration would most plausibly occur through a successful large-scale acquisition rather than organic growth alone.

Previously, we covered a bullish thesis on Evergy, Inc. (EVRG) by Hidden Market Gems in April 2025, which highlighted the company’s defensive regulated utility model insulated from macro volatility. EVRG’s stock price has appreciated by approximately 13.56% since our coverage. Danny Green shares a similar view but emphasizes on Fortis Inc.’s rate-base-driven growth and compounding potential tied to grid modernization.

Fortis Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held FTS at the end of the third quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of FTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FTS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.