10 Best Electrical Infrastructure Stocks to Buy According to Hedge Funds

In this article, we are going to discuss the 10 best electrical infrastructure stocks to buy according to hedge funds.

The American utilities sector has had its strongest start to the year since 2019, benefiting from an investor retreat from riskier assets during the Middle East conflict and the strong electricity demand from firms building out AI infrastructure. The S&P Utilities index has surged by 8.43% since the beginning of 2026, compared to the 5.11% gains delivered by the overall S&P 500 during the period. This outperformance stems from the sector’s traditional defensive role, offering investors an opportunity for steady dividend payouts and lower ​volatility during market swings.

The US electricity demand surged to a record high last year, with data centers accounting for around 50% of the demand growth. As the global AI race continues its momentum, the country’s power demand remains on track to surge even further in 2026 and 2027. This positions the utilities sector well to continue delivering strong growth and also sustain its high shareholder returns in the future.

With that said, here are the Best Electricity Infrastructure Stocks to Buy in 2026.

Our Methodology 

To collect data for this article, we used our stock screeners to identify electrical infrastructure stocks with the highest number of hedge fund holders at the end of Q4 2025, as per the Insider Monkey database. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best Electrical Infrastructure Stocks to Buy Now.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. FirstEnergy Corp. (NYSE:FE) 

Number of Hedge Fund Holders: 41

FirstEnergy Corp. (NYSE:FE)’s electric distribution companies form one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York. The company’s transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions.

FirstEnergy Corp. reported its Q1 2026 results on April 28, with the company growing its core earnings by 7.5% YoY to $0.72 per share, in line with market expectations. Revenue for the quarter also grew by 11.6% YoY to $4.2 billion, beating estimates by over $362 million. The utility posted a profit of $405 million, up 12.5% compared to the same period last year, due to the higher electricity rates ​and growing demand from power-hungry data centers.

FirstEnergy Corp. reaffirmed its core earnings guidance range of $2.62 ‌to $2.82 ⁠per share for FY 2026, helped by its $6 billion capital investment plan for the year, focusing on grid modernization, distribution upgrades, and transmission reliability. Moreover, the company revealed that its broader CapEx plan of $36 billion for ​2026 to ⁠2030 is expected to generate about 10% ​compounded annual rate‑base growth.

9. Exelon Corporation (NASDAQ:EXC) 

Number of Hedge Fund Holders: 45

Exelon Corporation (NASDAQ:EXC) is one of the country’s largest utility companies, serving more than 10 million customers through six fully regulated transmission and distribution utilities.

On April 28, Exelon Corporation declared a quarterly dividend of $0.42 per share. The dividend is payable on June 15 to shareholders as of the June 4 record. EXC currently offers a robust annual dividend yield of 3.57%, putting it among the 15 Utility Stocks with Highest Dividends.

Exelon Corporation has delivered a 7.4% annual earnings growth rate and 8% rate base growth since 2021, highlighting its ability to navigate changes and consistently execute. The company is now targeting operating earnings of $2.81 to $2.91 per share for FY 2026. Moreover, the utility is guiding an annualized earnings growth of 5% to 7% through 2029, with the expectation of being near the top end of that range.

Heartland Advisors, an investment management company, stated the following regarding Exelon Corporation in its Q1 2026 investor letter:

“Utilities. Exelon Corporation, a transmission and distribution focused utility operating across multiple U.S. regions, represents a Deep Value utility holding that inflected positively versus peers during the quarter.

Exelon, which operates in Delaware, Illinois, Maryland, New Jersey, Pennsylvania, and Washington, D.C., doesn’t generate power. It owns and manages the transmission lines, local wires, and control systems that distribute that electricity. Thanks to its geography, it must work with PJM Interconnection, a regional transmission organization that runs wholesale markets and directs the flow of power for a large part of the Eastern United States. In our opinion, PJM is a flawed market where consumers are being squeezed with high prices. However, we believe that part of the solution represents a growing opportunity set for EXC in the form of higher transmission investment and eventually more state-regulated generation growth.

The company’s updated 5-year outlook provided the clearest evidence yet of this prospect becoming reality. Despite recent share price appreciation, the stock continues to trade at a discount to peers of comparable quality, and we consider the re-rating opportunity versus peers to be in the early stages.”

8. Edison International (NYSE:EIX) 

Number of Hedge Fund Holders: 47

Edison International (NYSE:EIX) is one of the largest electric utility holding companies in America, focused on providing clean and reliable energy and energy services through its independent companies.

On April 29, Barclays slightly lowered its price target on Edison International from $78 to $77, but kept an ‘Overweight’ rating on the shares. The trimmed target, which still represents an upside of 10% from the current levels, comes after the utility beat earnings estimates in Q1 and reaffirmed all aspects of its financial plan.

Edison International reported its Q1 2026 results on April 28, with the company’s adjusted EPS of $1.42 exceeding expectations by $0.09. Core earnings increased by $0.05, primarily due to the adoption of the GRC decision last year. However, the utility’s revenue of $4.1 billion fell short of estimates by just over $23 million, despite a 7.6% YoY growth.

Edison International reaffirmed its 2026 core EPS guidance of $5.90-$6.20, in addition to expressing confidence in hitting its target of 5-7% core EPS growth from 2025-2030.

7. Entergy Corporation (NYSE:ETR) 

Number of Hedge Fund Holders: 50

Entergy Corporation (NYSE:ETR) delivers electricity and gas services to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.

Entergy Corporation reported its Q1 2026 results on April 29, with the company’s adjusted EPS of $0.86 slightly above estimates by $0.02, driven by customer investments, regulatory actions, and offset by higher depreciation, taxes other than income taxes, and interest expense from capital expenditures. The utility’s Industrial sales growth was very strong at 15%, while overall retail sales grew by 6%.

Entergy Corporation reaffirmed its 2026 adjusted EPS guidance range of $4.25 to $4.45. Moreover, the company increased its long-term adjusted EPS outlooks, raising its 2027 outlook by $0.20 and its 2029 outlook by $0.50 to $6.40 per share. This is driven by an expected 8.5% compound annual retail sales growth through 2029, including a compound annual industrial growth of 16%.

Entergy Corporation also bumped up its four-year capital plan by $14 billion to $57 billion, primarily due to a new Electric Service Agreement that the company signed with Meta for another data center in North Louisiana. The investment includes seven new combined cycle units, transmission infrastructure, and battery storage facilities.

6. American Electric Power Company, Inc. (NASDAQ:AEP)

Number of Hedge Fund Holders: 60

American Electric Power Company, Inc. (NASDAQ:AEP) is one of the nation’s largest electricity producers with approximately 29,000 megawatts of diverse generating capacity. The company operates and maintains the nation’s largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states.

On April 28, American Electric Power Company, Inc. declared a quarterly dividend of $0.95 per share. The dividend is payable on June 10 to shareholders as of the May 8 record. As of the writing of this piece, AEP boasts an annual dividend yield of 2.77%, putting it among the 10 Best Large Cap Dividend Growth Stocks to Invest in.

American Electric Power Company, Inc. is targeting operating earnings in the range of $6.15 to $6.45 per share for FY 2026, indicating a YoY growth of 5.5% at the midpoint. Moreover, the company has guided a long-term earnings growth rate of 7% to 9% for 2026 to 2030, with an expected CAGR of 9%. In its last earnings call, the utility also doubled its contracted load outlook to 56 GW by 2030.

5. NRG Energy, Inc. (NYSE:NRG)

Number of Hedge Fund Holders: 63

NRG Energy, Inc. (NYSE:NRG) delivers innovative natural gas, electricity, and smart home solutions to customers large and small across North America.

On April 27, Raymond James trimmed its price target on NRG Energy, Inc. from $220 to $210, but maintained a ‘Strong Buy’ rating on the shares. The lowered target still indicates an upside of almost 41% from the current price levels.

Raymond James expects the IPP group to report mixed earnings in Q1, with minimal spillover to the broader sector. The analyst expects NRG Energy, Inc. to report weaker near-term results, driven by the softer ERCOT weather, reduced load, and lower power prices. The impact of these factors is likely to vary by company, depending on the mix of their retail and supply structure.

NRG Energy, Inc. is set to report its Q1 2026 results on May 6. The company is targeting an adjusted EBITDA of $5.575 billion and adjusted net income of $1.9 billion for FY 2026. Moreover, adjusted EPS for the year is expected to come in at $8.90 per share, while free cash flow before growth is projected to be $3.05 billion.

4. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 72

With a market cap of over $204 billion as of the writing of this article, NextEra Energy, Inc. (NYSE:NEE) is the most valuable utility company in the world. The company boasts a diverse mix of energy sources, including natural gas, nuclear, renewable energy, and battery storage.

On April 27, BMO Capital bumped up the firm’s price target on NextEra Energy, Inc. from $99 to $104, while keeping an ‘Outperform’ rating on the shares. The revised target, which represents an upside of 6% from the current price levels, comes after the utility reported better-than-expected results for its Q1 on April 23.

BMO Capital highlighted the utility’s Energy Resources unit, which had a record quarter with 4 GW of new long-term contracted renewables and storage projects added to its backlog, up sequentially from 3.6 GW in the previous quarter. Nextera’s total backlog now stands at around 33 GW.

NextEra Energy, Inc. reaffirmed its 2026 adjusted EPS target of $3.92 to $4.02 per share, compared to $3.71 per share last year. The utility further expects to grow its adjusted EPS at a CAGR of over 8% through 2032, and then the same from 2032 through 2035, all off the 2025 base. Moreover, the company reiterated its goal to grow its dividend per share at around 10% per year through 2026, off a 2024 base, and 6% per year from year-end 2026 through 2028.

3. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 76

Constellation Energy Corporation (NASDAQ:CEG) is the largest provider of clean, low-carbon energy in the United States. The company also operates the largest fleet of nuclear facilities in the country.

On April 29, Scotiabank analyst Andrew Weisel reduced the firm’s price target on Constellation Energy Corporation from $481 to $441, while maintaining an ‘Outperform’ rating on the shares. The lowered target, which still indicates an upside of over 42% from the current price levels, comes as the analyst firm expects CEG to post strong Q1 results and remains bullish on the stock.

Similarly, Evercore ISI also resumed coverage of Constellation Energy Corporation with an ‘Outperform’ rating earlier on April 24 (read more details here).

Constellation Energy Corporation declared a quarterly dividend of $0.4625 per share on April 28 and also grew its share repurchase plan to $5 billion last month. The company is targeting adjusted earnings of $11-$12 per share for FY 2026, in addition to guiding a base earnings CAGR of 20% during 2026-29.

2. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 80

PG&E Corporation provides natural gas and electric service to residential and business customers in northern and central California.

PG&E Corporation reported strong results for its Q1 2026 on April 23, with the company exceeding estimates in both earnings and revenue. The utility grew its revenue by 15% YoY to $6.9 billion, while its core EPS of $0.43 was up by $0.10 YoY, attributed to capital investment and O&M savings.

Given the impressive results, PG&E Corporation reaffirmed its full-year 2026 core EPS guidance of $1.64 to $1.66, indicating a 10% surge over 2025 and marking its fifth consecutive year of double-digit core earnings growth. The company’s EPS growth guidance for 2027 through 2030 also remains unchanged at 9% plus annually. Moreover, there is also no change to its five-year $73 billion capital plan through 2030.

PG&E Corporation was also recently included in our list of the 11 Most Profitable Renewable Energy Stocks Right Now.

1. Vistra Corp. (NYSE:VST)

Number of Hedge Fund Holders: 102

Vistra Corp. (NYSE:VST) is one of the largest competitive power generators in the United States. The company operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities in the country.

On April 27, Raymond James lowered its price target on Vistra Corp. from $240 to $208, but kept a ‘Strong Buy’ rating on the shares. The trimmed target still reflects an upside potential of over 35% from the current share price.

Raymond James expects the Q1 results from the IPP group to be mixed, with limited broader read-through. The analyst firm expects Vistra Corp. to report a weaker performance in the near-term, primarily driven by the softer ERCOT weather, reduced demand, and lower power prices.

Similarly, earlier on April 21, Morgan Stanley analyst David Arcaro also reduced the firm’s price target on Vistra Corp. by $6, but maintained an ‘Overweight’ rating on the shares (read more details here).

Vistra Corp. is set to report its Q1 2026 results on May 7.

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