The Big Idea: Fortis – A Bullish Power Play

Fortis Inc. (TSX:FTS) is about to surge. This premium-regulated utility has been quietly building momentum, and the stars are aligning for another leg higher. After a minor retracement into the mid-$56 area, FTS is showing all the signs of a classic trend-pullback continuation in an established uptrend. Buyers have defended the last dip around $56.05, and the stock has already rallied back to ~$58.23. With core fundamentals roaring – from a flash IPO of a CA$28.8 billion 5-year capital plan to a 52-year dividend-increase streak – the set-up is too compelling to ignore. In short, Fortis is strong, steady, and ready to head back toward (and beyond) its recent highs. Our plan: buy in the $57.00–$57.80 zone, place a tight stop below $55.70, and aim for $61.00. In one week’s time, we expect Fortis to make a push for fresh highs.

What’s Changed / Why Now

Fundamentals = Fortis Forever: Fortis has just reported blowout earnings and announced an ambitious growth agenda (www.investing.com) (www.investing.com). In mid-February 2026, the company posted Q4 results showing 7.6% adjusted EPS growth for the year and delivered 24% total return to shareholders over 12 months (www.investing.com) (m.ng.investing.com). More importantly, Fortis unveiled a CA$28.8 billion capital plan through 2030 (www.investing.com). Nearly half of that spending is earmarked for transmission and distribution upgrades, ensuring the regulated rate base expands from CA$42.4 b to ~$57.9 b by 2030 (a 7% CAGR) (www.investing.com). This means accelerating growth locked in for years.

Meanwhile, the dividend story just keeps juicier. Fortis extended its record – a 52-year streak of raising payouts – with a fresh 4.1% hike (longbridge.com). Major markets have taken notice: the stock spiked on the news, adding to a year where it’s already up ~24% (www.investing.com). Plus, Fortis’s ultra-low-risk, fully-regulated model is attracting capital back into utilities as interest rates stabilize. In short, Fortis’s backstory has never been stronger.

On the technical side, the shares have been riding an uptrend. Over the last 3–6 months FTS gained roughly 15–18% (and nearly hit its 52-week high) (www.fool.ca) (www.investing.com). A brief pullback to ~$56 was quickly bought, forming a higher low. This indicates buyers are confident at each dip. With that support holding, the bias is set – higher prices ahead.

Catalysts Ahead

  • Q1 Earnings & Guidance: The next quarterly results (likely April/May) should reaffirm Fortis’s stability and growth. With robust backlog of projects and rate base growth, Wall Street will be watching for continued EPS beats.
  • Major Project Approvals: Key projects like Arizona transmission upgrades (TEP), ITC’s long-range plans, and B.C. infrastructure (Tilbury LNG) await regulatory approvals or funding decisions, each a booster rocket for Fortis’s growth narrative (www.investing.com).
  • Infrastructure Spending: Ongoing North American focus on grid modernization and LNG infrastructure plays to Fortis’s wheelhouse, potentially unlocking extra funding or partnerships that lift utilities.
  • Dividend Increase: With 52 years of consecutive hikes, watch for another payout bump in the spring. Income-hungry investors will like a higher yield, supporting the stock price.
  • Market Technicals: Short interest remains high (short-volume ratio ~57%), so even a modest rally can trigger short-covering squeezes. A break above $58.23 (recent range top) could ignite a rapid leg up as bears scramble.

The Numbers That Matter

  • CA$28.8 B (5-year capex plan) – Fortis’s new investment roadmap (2026–2030), with ~7% CAGR rate base expansion (www.investing.com).
  • CA$3.53/share Adjusted EPS (2025) – up 7.6% from 2024 (www.investing.com), reflecting strong regulated earnings.
  • 24% – one-year total shareholder return through 2025 (www.investing.com) (m.ng.investing.com), demonstrating Fortis’s track record of rewarding holders.
  • 52 years – consecutive annual dividend increases (the definition of a utility aristocrat) (longbridge.com). Income investors know that streak is gold.
  • CA$5.6 B – capital invested in 2025 projects (m.ng.investing.com), fueling growth in grids, data centers, and more.
  • 59% – percentage of growth spending funded by operations (only 30% debt) (www.investing.com), highlighting a rock-solid balance sheet.
  • 67.3 RSI (14-day) – FTS’s reading near 67 (below classic overbought), leaves room for further upside before exhaustion.
  • 52-week high $58.23, current price ~$59.6: Target $61 is just ~2.4% higher, well within reach if momentum holds.

Technical/Price Action Context

FTS’s chart is textbook bullish. Notice how the stock bounced from $56.05 earlier in March, establishing a higher low after that late-February peak near ~$58 (www.investing.com). This “trend plus pullback” pattern tells us institutional buyers are accumulating on weakness, not panicking at every retrace. Key moving averages all slope up – the 20-day (~$56.52) and 50-day (~$54.76) are deeply under the current price – confirming the uptrend is intact.

With price recently poking above short-term resistance and range highs, electrical power may be “charging up” for the next move. A clear break above the ~$58.23 high would technically open the door to new territory. Our $61 target reflects that extension. The stop at $55.70 sits just below the last swing low near $56, which is a logical defensible pivot: if that fails, the pattern breaks and we’ll exit to protect profits. But as long as $56 holds, the chart strongly favors the upside.

Huge bonus – Fortis’s stock has relatively low volatility and a tight corridor. ATR is only ~$1.00, meaning everyday swings are small and manageable. The consistency of its climb (with minimal drawdowns) makes riding these gains easier. In short, technicals perfectly align with our bullish story: Fortis is an uptrend with room to run.

Risks & What Could Go Wrong

  • Broad Market Selloff: Even solid utilities get rattled in panic selling. A sudden risk-off wave or credit crunch could drag FTS down with the broader market.
  • Rising Interest Rates: Utilities are rate-sensitive. If central banks surprise the market with rate hikes (or longer high rates), Fortis’s heavy debt load could pressure earnings and kill the rally.
  • Invalidating the Pattern: A drop through ~$56.00–$56.05 (our support zone) would break the bullish pullback structure. That would likely trigger stop-outs and a short-term trend reversal.
  • Low Liquidity: Average trading volumes have been relatively subdued recently. On light volume, big moves can fizzle; FTS needs broad participation to sustain a breakout.
  • Regulatory Setbacks: Surprising decisions (e.g. lower ROEs or delayed approvals) in key jurisdictions (Arizona, B.C., etc.) could cap future growth.

Bottom Line: Charge the Grid, Charge Your Portfolio

Fortis is the rare combination of safety and dynamism. Its creeping uptrend isn’t a fluke – it’s built on real capital growth and shareholder-friendly policies. We’re simply capitalizing on a proven momentum swing in a stock that’s gearing up to blow past its recent peak. Entry near $57–$57.80 locks in a favorable risk/reward: we buy at support and target new highs around $61, aiming for ~+7% gain.

Confidence is high – Fortis’s fundamentals practically scream “buy” – but as always we manage risk tightly. Place stops at $55.70 to keep losses small if the pattern breaks. If $56 holds and the buyers prevail, expect to see $61 (and beyond) lit up on the charts in short order.

Not financial advice. This is our high-conviction trade plan for Fortis (FTS), crafted from deep research and technical setup. As always, do your own homework and size positions appropriately. For those ready to play this trend pullback, we believe Fortis has the power to deliver the next leg up.

Sources

  • Fortis Inc. Q4 2025 Results & Presentation (Investing.com) (www.investing.com)
  • Fortis Inc. Q4 2025 Earnings Call Transcript (Investing.com) (m.ng.investing.com)
  • Simply Wall St / Longbridge – Fortis 52-Year Dividend Streak (longbridge.com)
  • Motley Fool Canada – “Outlook for Fortis Stock in 2025” (www.fool.ca)
  • Additional company disclosures, industry data, and technical market analysis (evaluated via company filings and pricing data).