In this article, we will discuss: 10 Best Performing Electrical Infrastructure Stocks in 2025.
The fundamental goal of dozens of electrical utility companies is to produce and provide electricity to customers. Moreover, these businesses collaborate to maintain the infrastructure that supports the country’s electrical grid, guaranteeing its reliability.
According to a Bloomberg story on November 28, US utility stocks saw a decline in late November following an uptick fueled by optimism that artificial intelligence would significantly boost demand for electricity. As investors priced in massive data-center power contracts, shares had risen to all-time highs. However, optimism faded when a number of projects seemed smaller or took longer than expected to finish. Bloomberg further reported that the S&P 500 Utilities Index, which hit an all-time high in October, was on course for its worst monthly performance since August.
During that time, a number of significant power producers experienced significant declines from their recent highs. One large producer fell around 11% from its October peak after third-quarter results that included no information on new power generation or data-center contracts, triggering a Jefferies analyst note headlined “No Data Center Deals.” Moreover, analysts also noted a slower pace of data-center announcements than anticipated, which caused another producer to drop almost 16% from mid-October levels. Furthermore, companies adjusted their EBITDA estimate or narrowed the top end of their earnings-per-share forecasts to temper expectations, whereas others kept their forecasts in place despite market expectations for growth.
Travis Miller, a utility analyst for Morningstar, commented that if the electricity demand growth doesn’t show up, then utilities look overvalued where they’re trading. Meanwhile, KeyBanc Capital Markets utility analyst Sophie Karp continued that there is no bubble in utilities, and until they witness the next phase of expansion, the market is pausing.
With that said, here are the 10 Best Performing Electrical Infrastructure Stocks in 2025.
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Our Methodology
We began with a pool of 20 Electrical Infrastructure stocks from the ETFs and market screeners and identified stocks that have delivered positive returns in 2025 so far. We then picked the top 10 stocks with the highest Year-to-Date return as of December 15. We have also mentioned the number of hedge fund holders for each stock using Insider Monkey’s database of hedge funds as of Q3 2025. The stocks are ranked in ascending order of their year-to-date performance.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. DTE Energy Company (NYSE:DTE)
Year-to-date return as of December 15: 6.76%
Number of Hedge Fund Holders: 32
DTE Energy Company (NYSE:DTE) is one of the Best Performing Stocks.
On December 17, 2025, TheFly reported that UBS analyst William Appicelli maintained a Buy recommendation on DTE Energy Company (NYSE:DTE) shares and lowered the price objective to $151 from $155.
Separately, on December 11, 2025, TheFly reported that Jefferies upgraded DTE Energy Company (NYSE:DTE) from Hold to Buy and increased its price objective from $149 to $150.
In contrast to the company’s Q3 estimate of 7.2% and its previous 7.6% forecast, Jefferies analyst Julien Dumoulin-Smith now projects an 8.1% compound annual EPS growth rate for 2026-2030. Expectations related to data center prospects are included in the upgrade. Jefferies added 1.5 gigawatts of data center-associated demand to its projections in early 2026. Jefferies stated that it has confidence in an EPS growth rate of more than 8% through 2030 based on this development.
On the same day, JPMorgan dropped its price target for DTE Energy Company (NYSE:DTE) to $145 from $151. The firm retained a Neutral rating, according to TheFly. The modification came when the North American utilities business updated its models, as stated by JPMorgan.
DTE Energy Company (NYSE:DTE) owns two regulated utilities in Michigan, which account for 90% of earnings. DTE Electric has over 2.3 million consumers in southeastern Michigan, including Detroit.
9. Duke Energy Corporation (NYSE:DUK)
Year-to-date return as of December 15: 8.28%
Number of Hedge Fund Holders: 62
Duke Energy Corporation (NYSE:DUK) is one of the Best Performing Stocks.
According to TheFly, Duke Energy Corporation (NYSE:DUK) submitted requests for updated rates at its two utilities in the state, Duke Energy Carolinas and Duke Energy Progress, to the North Carolina Utilities Commission on November 21.
In the submission, Duke Energy Carolinas requests a $1 billion yearly revenue boost, which would include $727 million in 2027 and $275 million in 2028. This would be a rise of 15% above current revenues. The $729 million request for Duke Energy Progress includes $200 million in 2028 and $528 million in 2027, a 15.1% growth above current revenues. Subject to regulatory approval, the demands depend on a 53% equity capital structure and a proposed 10.95% return on equity.
The expected advantages associated with nuclear production tax credits are also stated in the filing. Through 2032, Duke Energy Corporation (NYSE:DUK)’s nuclear plants are anticipated to produce tax credits worth hundreds of millions of dollars. Customers of Duke Energy Carolinas receive $150 million in nuclear production tax credits in 2025–2026 at current rates. The fresh proposal would extend nuclear production tax credits to Duke Energy Progress customers while also introducing solar and hydro tax incentives for both utilities. Duke Energy Corporation (NYSE:DUK) also stated that a proposed merger of Duke Energy Carolinas and Duke Energy Progress will save customers over $1 billion in future expenses.
Duke Energy Corporation (NYSE:DUK) is one of the largest utilities in the United States, having regulated utilities in the Carolinas, Indiana, Florida, Ohio, and Kentucky.
8. Consolidated Edison, Inc. (NYSE:ED)
Year-to-date return as of December 15: 11.25%
Number of Hedge Fund Holders: 43
Consolidated Edison, Inc. (NYSE:ED) is among the Best Performing Stocks.
On December 16, 2025, Thefly revealed that Morgan Stanley kept its Underweight rating on Consolidated Edison, Inc. (NYSE:ED) while cutting its price objective from $98 to $92. According to a year-ahead statement, data centers will have a significant impact on utility performance and growth in 2026.
Earlier on December 12, 2025, KeyBanc reaffirmed its Underweight rating and reduced its price objective for Consolidated Edison, Inc. (NYSE:ED) from $90 to $86. The firm attributed the pressure on valuation to the unfavorable political situation in New York, the lack of growth prospects, and the anticipation of additional share shrinkage.
Separately, Consolidated Edison, Inc. (NYSE:ED)’s subsidiary signed a purchase and sale contract on November 24, 2025. The deal is to sell its about 6.6% stake in Mountain Valley Pipeline, LLC, in accordance with a regulatory filing made public on November 25, 2025. An Ares Management fund will purchase the stake, which includes shares in the Mountain Valley Pipeline and the Mountain Valley Pipeline Mainline Expansion, for $357.5 million. Accrued taxes, performance guarantees, pre-closing payouts, and pre-closing capital contributions will all be factored into the base purchase price. The deal is anticipated to close in the first half of 2026, depending on potential preferential rights and usual closing conditions.
Consolidated Edison, Inc. (NYSE:ED) is a holding company for Orange & Rockland and Consolidated Edison of New York. Customers in southeastern New York, including New York City, and some areas of New Jersey receive electricity, natural gas, and steam from these utilities.
7. WEC Energy Group, Inc. (NYSE:WEC)
Year-to-date return as of December 15: 11.68%
Number of Hedge Fund Holders: 37
WEC Energy Group, Inc. (NYSE:WEC) is one of the Best Performing Stocks.
Barclays reduced its price target for WEC Energy Group, Inc. (NYSE:WEC) from $110 to $105 while keeping an Equal Weight rating, according to TheFly on December 16, 2025. Analyst Nicholas Campanella provided the update.
TheFly published earlier on December 12, 2025, that KeyBanc also lowered its price target for WEC Energy Group, Inc. (NYSE:WEC), bringing it down from $123 to $117 while maintaining an Overweight rating.
The company’s management team and its history of carrying out its plan and producing outcomes close to the top of its guidance range were mentioned by analyst Sophie Karp. The note stressed Wisconsin’s regulatory jurisdiction as historically beneficial and pointed to the state’s promising future. According to KeyBanc, WEC Energy Group, Inc. (NYSE:WEC)’s superior value in comparison to peers is still supported by its operational execution and trust in its limited long-term growth rate.
Separately, the board of WEC Energy Group, Inc. (NYSE:WEC) declared on December 4, 2025, that the dividend would be raised to $0.9525 per share in the first quarter of 2026. The increase would be 6.7% to $3.81 per share annually. The board anticipates declaring the dividend in January, which will be paid to shareholders of record on February 13, 2026, and on March 1, 2026.
WEC Energy Group, Inc. (NYSE:WEC)’s electric and gas utility operations serve customers in the Illinois, Michigan, Minnesota, and Wisconsin service areas.
6. Xcel Energy Inc. (NASDAQ:XEL)
Year-to-date return as of December 15: 13.25%
Number of Hedge Fund Holders: 49
Xcel Energy Inc. (NASDAQ:XEL) is among the Best Performing Stocks.
On December 16, 2025, Reuters reported that Texas Attorney General Ken Paxton filed a lawsuit against Southwestern Public Service Company, a division of Xcel Energy Inc. (NASDAQ:XEL), claiming it was responsible for the 2024 Smokehouse Creek wildfire. The fire was the largest ever recorded wildfire in Texas history, burning to death three individuals and causing more than $1 billion in damage. Paxton’s office claims that the lawsuit aims to recover monetary damages, such as lost wildlife value and property damage. It also requests a court order mandating corrective actions to stop similar instances in the future, as well as civil fines for breaking Texas law.
Following the announcement, Xcel Energy Inc. (NASDAQ:XEL)’s shares dropped 4% in afternoon trading. An inquiry against multiple utility companies linked to the Smokehouse Creek and Windy Deuce fires was started earlier in 2025 by Paxton’s office. As per Paxton, the company failed to uphold its duty of care to the locals and customers in its service area.
Xcel Energy Inc. (NASDAQ:XEL) handles utilities in eight states, serving 3.8 million electric and 2.2 million natural gas users.
5. NextEra Energy, Inc. (NYSE:NEE)
Year-to-date return as of December 15: 13.94%
Number of Hedge Fund Holders: 72
NextEra Energy, Inc. (NYSE:NEE) is among the Best Performing Stocks.
Recently, on December 16, 2025, TheFly reported that Morgan Stanley lowered its price goal for NextEra Energy, Inc. (NYSE:NEE) from $97 to $95 and retained an Overweight rating. The change was included in the company’s utilities outlook for the upcoming year. The analyst projects that data center-related demand would have a significant impact on utility performance, with more growth upside anticipated for 2026.
The Fly reported on December 10, 2025, that BMO Capital had reduced its price goal for NextEra Energy, Inc. (NYSE:NEE) from $90 to $89. It continued to receive an Outperform grade.
As per BMO, the modification features a sum-of-parts valuation approach, revised mark-to-market assumptions, and a rollover of the firm’s base valuation year to 2028. NextEra Energy, Inc. (NYSE:NEE) is anticipated to grow its earnings per share at a compound annual growth rate of 8% or higher through 2035, according to management commentary from the company’s Analyst Day, which BMO also cited.
A deal was also made this month. On December 8, Bloomberg announced that the infrastructure division of NextEra Energy, Inc. (NYSE:NEE) had reached an agreement to purchase closely held Symmetry Energy Solutions for an undisclosed amount. The goal is to increase its natural gas capacity in the US and assist in supplying the growing need for AI power, as per Bloomberg.
NextEra Energy, Inc. (NYSE:NEE)’s regulated utility, Florida Power & Light, is Florida’s biggest rate-regulated utility.
4. Exelon Corporation (NASDAQ:EXC)
Year-to-date return as of December 15: 17.10%
Number of Hedge Fund Holders: 41
Exelon Corporation (NASDAQ:EXC) is one of the Best Performing Stocks.
Morgan Stanley reduced their price objective for Exelon Corporation (NASDAQ:EXC) to $49 from $52, retaining an Equal Weight rating, according to TheFly on December 16, 2025. As per analyst David Arcaro, data centers are going to fuel utility performance and growth in 2026, as stated in a year-ahead note.
On December 12, 2025, TheFly reported that KeyBanc reaffirmed its Underweight rating and reduced its price target for Exelon Corporation (NASDAQ:EXC) from $42 to $39.
According to the firm, the rating is in line with its broader industry thesis, which favors vertically integrated utilities and independent power producers over wire-only firms like Exelon Corporation (NASDAQ:EXC) . Even though the business is trading at a significant discount to its competitors, KeyBanc pointed out that political constraints and several gubernatorial elections in its operational footprint are anticipated to limit near-term multiple growth.
KeyBanc added that due to the nature of Exelon Corporation (NASDAQ:EXC)’s wires-only business, a growth rate modification is unlikely in the foreseeable future. The firm also stated that it is unclear in the near future if the business would be permitted to take part in state-level solicitations, which further restricts upside in its opinion.
Exelon Corporation (NASDAQ:EXC) provides power and gas to over 10 million consumers through its six regulated utilities in Illinois, Pennsylvania, New Jersey, Maryland, Delaware, and Washington, D.C.
3. Entergy Corporation (NYSE:ETR)
Year-to-date return as of December 15: 24.68%
Number of Hedge Fund Holders: 56
Entergy Corporation (NYSE:ETR) is among the Best Performing Stocks.
TheFly reported that KeyBanc reduced its price objective for Entergy Corporation (NYSE:ETR) to $102 from $106 on December 12, 2025. The firm retained an Overweight rating on the stock.
As per KeyBanc, Entergy Corporation (NYSE:ETR)’s growth narrative is still intact, and the business is in a strong position following the acquisition of equipment required to support new clients. KeyBanc stated that the company is still having positive discussions with prospective customers.
According to the analyst, vertically integrated utilities with exposure to the data center trend fetch a premium above peers. The firm identified Entergy Corporation (NYSE:ETR) as one of the best firms for long-term investors. The firm stated that it believes the shares still have potential.
Entergy Corporation (NYSE:ETR) is a holding company that operates five regulated vertically integrated utilities in Arkansas, Louisiana, Mississippi, and Texas that produce and supply power to three million consumers.
2. American Electric Power Company, Inc. (NASDAQ:AEP)
Year-to-date return as of December 15: 26.17%
Number of Hedge Fund Holders: 56
American Electric Power Company, Inc. (NASDAQ:AEP) is among the Best Performing Stocks.
On December 5, 2025, American Electric Power Company, Inc. (NASDAQ:AEP)’s place in the US transmission grid was thoroughly examined by Rachel Levine, a Senior Transmission Policy Analyst for the Climate and Energy team at the Niskanen Center. The analyst claims that the U.S. grid is dominated by alternating current, with transmission voltages that range from 100 kV to 765 kV. While the grid has over 500,000 miles of HVAC lines, only roughly 10,000 miles run at 765 kV, accounting for less than 1% of total transmission mileage. The company has the largest network of 765 kV transmission lines in the United States, covering more miles than all of the other utilities combined.
According to analyst Rachel Levine, American Electric Power Company, Inc. (NASDAQ:AEP) assets are already present in the service territories of all four regional grid operators in the United States that are seeking 765 kV expansion. More than 400 miles of new 765 kV lines have been approved by PJM Interconnection. ERCOT decided against extending its 345 kV network in favor of a new 765 kV development. The Southwest Power Pool declared a 765 kV overlay throughout the Plains, whereas MISO selected 765 kV lines for its Tranche 2 expansion after considering several options.
Separately, on December 12, 2025, TheFly reported that JPMorgan had raised the price target for American Electric Power Company, Inc. (NASDAQ:AEP). Jeremy Tonet, a JPMorgan analyst, boosted the company’s price objective from $121 to $125 and kept the shares’ Neutral rating. The modification is a result of new valuation models used by JPMorgan’s utilities coverage group in North America.
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the major regulated utilities in the United States. It provides electricity generation, transmission, and distribution to over 5 million customers across 11 states.
1. Constellation Energy Corporation (NASDAQ:CEG)
Year-to-date return as of December 15: 47.72%
Number of Hedge Fund Holders: 91
Constellation Energy Corporation (NASDAQ:CEG) is among the Best Performing Stocks.
On December 16, 2025, TheFly reported that JPMorgan reduced its price objective for Constellation Energy Corporation (NASDAQ:CEG) from $422 to $410 and maintained its Overweight rating. As per the firm, the modification is a result of revisions made to its financial model following the release of its third-quarter report.
Separately, on December 5, 2025, Reuters reported that Constellation Energy Corporation (NASDAQ:CEG) and the U.S. Department of Justice (DOJ) had achieved a settlement on the requirements needed to finalize the $16.4 billion acquisition of Calpine Corporation. According to Reuters, the Federal Energy Regulatory Commission accepted the purchase, subject to Calpine selling four generating assets in the Mid-Atlantic region.
Constellation Energy Corporation (NASDAQ:CEG) would divest three natural gas-fired power plants under the terms of the agreement with the DOJ: the York 2 facility in Pennsylvania, the Jack Fusco Energy Center near Houston, Texas, and a minority interest in the Gregory Power facility near Corpus Christi. According to the DOJ, these divestitures ease concerns that the transaction may lessen competition and increase power costs in the PJM Interconnection and Electric Reliability of Texas markets.
The Calpine acquisition came to light in January and is one of the largest transactions in the US power industry. Reuters reported that the agreement coincides with increased electrification in buildings and transportation, as well as growing electricity demand associated with AI data centers.
Constellation Energy Corporation (NASDAQ:CEG) is a supplier of energy products and services as well as a manufacturer of carbon-free energy.
While we acknowledge the potential of CEG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CEG and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. 10 Best Performing Electrical Infrastructure Stocks in 2025 is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
