In this article, we are going to discuss the 10 best-performing utility stocks in 2025.
The S&P Utilities index surged by 12.7% in 2025, lagging behind the 16.4% gains posted by the overall S&P 500 during the year. With hundreds of billions of dollars pouring into power-hungry data centers, the utilities sector has emerged as one of the biggest winners of the ongoing AI boom.
Multiple hyperscalers signed long-term power purchase agreements (PPAs) with utility companies last year to make sure that they had enough energy available to keep up in the AI race. As a result, utility stocks managed to outperform the market for most of 2025. However, the sector witnessed a pullback in the last quarter following the fears of a potential AI bubble, with investors concerned if the promised billions worth of investments would actually come to fruition or not.
That said, the sector still has strong growth potential. According to the Energy Information Administration, US electricity demand, which reached its second straight record high in 2025, is set to maintain this momentum and beat those records in 2026 and 2027 as well. The unprecedented consumption is driven in part by data centers and cryptocurrency, as well as the rapid electrification of homes and businesses.
With that said, here are the Best Performing Utility Stocks in 2025.
Photo by Matthew Henry on Unsplash
Our Methodology
To collect data for this article, we used historical data on Yahoo Finance to identify utility stocks that posted the highest gains between the close of December 31, 2024, and the close of December 31, 2025. To keep our list relevant, we have only included companies with a market cap of at least $2 billion. Finally, we ranked the stocks by 2025 gains and listed the number of hedge fund investors for each stock at the end of Q3 2025, per the Insider Monkey database. The following are the Best Performing Utility Stocks in 2025.
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10. Entergy Corporation (NYSE:ETR)
Share Price Gains in 2025: 21.91%
Number of Hedge Fund Holders: 56
Entergy Corporation (NYSE:ETR) is an integrated energy company that provides electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
Entergy Corporation (NYSE:ETR) received a boost on January 9 when TD Cowen analyst Shelby Tucker initiated coverage of the stock with a ‘Buy’ rating and a price target of $108, indicating an upside of 12% from the current levels. The firm expects ETR’s EPS to grow by 10.5% through the end of the decade, driven by the increasing load from industrial and data center clients. Moreover, the analyst added that support from the state regulatory bodies is ‘key to our theme’.
Earlier on January 6, Argus also raised its price target on Entergy Corporation (NYSE:ETR) from $94 to $100, while maintaining a ‘Buy’ rating on the shares. Industrial sales were the largest growth contributors for Entergy in Q3 2025, and the analyst expects this strong industrial growth to continue through the end of the decade in the states of Louisiana, Mississippi, Arkansas, and Texas.
With an impressive annual dividend yield of 2.71%, Entergy Corporation (NYSE:ETR) was recently included in our list of the 11 Energy Stocks to Buy for a Retirement Stock Portfolio.
9. American Electric Power Company, Inc. (NASDAQ:AEP)
Share Price Gains in 2025: 25.02%
Number of Hedge Fund Holders: 56
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the largest electric utilities in the United States, powering millions of homes and businesses each day.
On January 12, BofA analyst Ross Fowler downgraded American Electric Power Company, Inc. (NASDAQ:AEP) from ‘Buy’ to ‘Neutral, while also trimming its price target from $131 to $122. The downgrade is primarily driven by valuation concerns, as AEP surged by 25% in 2025, compared to gains of around 12.7% from the overall S&P Utility index. The analyst highlighted that AEP is trading at a 4% premium compared to its peers, limiting its upside potential. Moreover, while BofA believes that the utility has a strong growth outlook, especially in Texas, it expects regulatory relationships to take time to develop and sees ‘limited near-term prospects’.
That said, American Electric Power Company, Inc. (NASDAQ:AEP) continues its focus on growth and announced on January 8 that it would acquire solid oxide fuel cells from Bloom Energy. The $2.65 billion deal is part of the utility’s plans to develop and build a fuel cell power generation facility in Wyoming. Moreover, AEP also disclosed that it had already signed a 20-year offtake agreement with an unnamed customer for 100% of the output from the planned facility.
8. Centuri Holdings, Inc. (NYSE:CTRI)
Share Price Gains in 2025: 30.76%
Number of Hedge Fund Holders: 79
Centuri Holdings, Inc. (NYSE:CTRI) is a strategic infrastructure services company that partners with regulated utilities and energy providers to build and maintain the energy network that powers millions of homes and businesses across the US and Canada.
On January 7, Wells Fargo analyst Joseph O’Dea raised the firm’s price target on Centuri Holdings, Inc. (NYSE:CTRI) from $25 to $30, while keeping an ‘Overweight’ rating on the shares. The revised target indicates an upside potential of almost 8% from the current share price.
Centuri Holdings, Inc. (NYSE:CTRI) also received a lift earlier on January 6 when the company announced that it had recently secured $870 million in new bookings for energy infrastructure services, reflecting the strong customer demand and associated investment in the sector. Around $178 million worth of these bookings were secured before the year-end, taking the company’s total awards for last year to $4.5 billion. Approximately 80% of these new bookings represent renewals of existing customer Master Service Agreements (MSAs), while the rest are for new work, including new strategic bid awards and new MSAs.
Christian Brown, President and CEO of Centuri Holdings, Inc. (NYSE:CTRI), commented:
“Securing such a substantial value of bookings to close 2025 and begin 2026 is a strong validation of our strategy and the trust our customers place in us based on disciplined execution and operational consistency, resulting in new and repeat business. The bookings momentum we are seeing today reflects a continuation of the business fundamentals and secular tailwinds we experienced in 2025, positioning us for strong revenue and earnings growth in 2026 and beyond. We are focused on delivering predictable outcomes for our shareholders while supporting our customers as they look to enhance resiliency, expand capacity, and support unprecedented load growth.”
7. Emera Incorporated (NYSE:EMA)
Share Price Gains in 2025: 31.73%
Number of Hedge Fund Holders: 7
Emera Incorporated (NYSE:EMA) is an energy and services company that invests in the generation, transmission, and distribution of electricity in the United States, Canada, Barbados, and the Bahamas.
On January 13, Emera Incorporated (NYSE:EMA) declared a quarterly dividend of C$0.7325 per share to all shareholders as of the January 30 record, payable on February 13, 2026. The stock currently boasts a robust annual dividend yield of 4.28%.
Separately, Emera Incorporated (NYSE:EMA) had a setback on January 12 when BofA downgraded the stock from ‘Buy’ to ‘Neutral’, while also reducing its price target from C$74 to C$69. The downgrade comes despite Emera recently unveiling a 5-year capital plan of $20 billion and reaffirming its earnings guidance, which the analyst acknowledges improves its near-term visibility. However, BofA cited valuation concerns for the decision, believing that the stock’s current premium already prices in the positive outlook.
Moreover, while BofA continues to favor Emera Incorporated (NYSE:EMA)’s operations in Florida, it remains concerned about the less attractive economic and regulatory backdrop in Nova Scotia, which the firm believes introduces uncertainty that could temper consolidated growth.
6. Algonquin Power & Utilities Corp. (NYSE:AQN)
Share Price Gains in 2025: 38.2%
Number of Hedge Fund Holders: 33
Next on our list of the Best Performing Utility Stocks Last Year is Algonquin Power & Utilities Corp. (NYSE:AQN). The company provides natural gas, water, and electricity generation, transmission, and distribution utility services to over 1 million customer connections, largely in North America.
On January 7, National Bank upgraded Algonquin Power & Utilities Corp. (NYSE:AQN) from ‘Sector Perform’ to ‘Outperform’, while also raising its price target on the stock from $7 to $7.50. The revised target indicates an upside potential of almost 16% from the current share price.
The upgrade comes as National Bank sees catalysts for Algonquin Power & Utilities Corp. (NYSE:AQN) as we enter 2026, stemming from the company’s multiple rate cases expected to be approved and implemented. The analyst projects EPS growth of approximately 10% YoY for the company in 2026, followed by over 20% growth in 2027. The forecasts are driven by seven active rate cases representing approximately $280 million in total revenue requests, which the analyst expects will be approved and implemented this year. As these rate cases are implemented, National Bank expects Algonquin to catch up with its peers in terms of valuation and return on equity.
5. Constellation Energy Corporation (NASDAQ:CEG)
Share Price Gains in 2025: 57.91%
Number of Hedge Fund Holders: 91
Constellation Energy Corporation (NASDAQ:CEG) is the largest private-sector power producer, the largest producer of clean energy, and the leading operator of nuclear power plants in the United States.
Constellation Energy Corporation (NASDAQ:CEG) announced on January 7 that it had completed the acquisition of Calpine Corporation, marking a significant milestone for the company. One of the biggest deals in American power industry history, the $16.4 billion acquisition is expected to add $2 billion to Constellation’s free cash flow on an annual basis. Together, the companies boast 55 gigawatts of capacity from zero- and low-emission sources, including nuclear, natural gas, and geothermal.
Joe Dominguez, President and CEO of Constellation Energy Corporation (NASDAQ:CEG), stated:
“This isn’t just about two great companies coming together – it’s about strengthening America’s future. Constellation is stepping up to power America’s growth when our nation’s demand for energy is surging, and our global competitors are racing to capture AI leadership. By uniting Constellation and Calpine, we’re providing the reliable, clean energy that keeps our communities strong, our businesses competitive and our nation secure.”
Following the merger, S&P Global affirmed Constellation Energy Corporation’s (NASDAQ:CEG) ‘BBB+’ issuer credit rating and maintained its stable outlook. The rating agency also raised its issuer credit rating on Calpine from ‘BB-‘ to ‘BBB+’, as it considers Calpine a core subsidiary of Constellation.
Constellation Energy Corporation (NASDAQ:CEG) has emerged as a key player to power the ongoing AI boom and its data centers. The company signed multiple long-term power purchase agreements with hyperscalers last year and garnered significant attention from investors. As a result, the share price of CEG surged by almost 58% in 2025.
4. Ormat Technologies, Inc. (NYSE:ORA)
Share Price Gains in 2025: 63.13%
Number of Hedge Fund Holders: 28
Ormat Technologies, Inc. (NYSE:ORA) is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation, as well as energy storage solutions.
Ormat Technologies, Inc. (NYSE:ORA) revealed on January 12 that it had signed a 20-year power purchase agreement (PPA) with Switch, marking the energy provider’s first direct PPA with a data center operator. Under the terms of the agreement, Ormat will supply Switch with approximately 13 MW of clean, renewable energy from its Salt Wells geothermal power plant in Nevada. Moreover, the deal includes an option for Ormat to further expand the facility’s output to Switch by adding a Solar PV facility of around 7 MW, which would serve the auxiliary power needs of the geothermal power plant.
Energy deliveries are scheduled to begin in the first quarter of 2030, following the completion of a major plant upgrade, expected by the second quarter of this year.
Following the deal, Roth Capital maintained its ‘Buy’ rating on Ormat Technologies, Inc. (NYSE:ORA), while assigning the stock a price target of $125. Despite its modest size, the analyst believes the data center PPA is an important milestone for the company.
3. Talen Energy Corporation (NASDAQ:TLN)
Share Price Gains in 2025: 86.05%
Number of Hedge Fund Holders: 88
Talen Energy Corporation (NASDAQ:TLN) is a leading independent power producer and energy infrastructure company with 13.1 GW of generation assets.
Talen Energy Corporation (NASDAQ:TLN) shot up by almost 12% on January 15 when the company announced that it had signed definitive agreements to acquire three gas-fired power plants in the PJM Interconnection from Energy Capital Partners, adding approximately 2.6 gigawatts of generating capacity to its portfolio. The $3.45 billion acquisition, comprising about $2.55 billion in cash and approximately $900 million in Talen stock, will significantly expand the utility’s footprint in the western PJM market. According to the company, the deal is expected to result in immediate annual adjusted free cash flow per share accretion of over 15% through 2030.
Terry Nutt, President of Talen Energy Corporation (NASDAQ:TLN), commented:
“When this transaction is complete, Talen will have approximately doubled its expected annual generation output inside of two years, meaningfully diversified our fleet, and materially increased our free cash flow per share. We are also excited to welcome ECP as a significant Talen shareholder.”
Following the deal, Morgan Stanley raised its price target on Talen Energy Corporation (NASDAQ:TLN) from $443 to $470, indicating an upside of over 26% from current levels. The firm also maintained its ‘Overweight’ rating on TLN shares, while highlighting that the stock’s valuation ‘looks very attractive’.
2. Enlight Renewable Energy Ltd (NASDAQ:ENLT)
Share Price Gains in 2025: 163.53%
Number of Hedge Fund Holders: 2
Enlight Renewable Energy Ltd (NASDAQ:ENLT) operates a renewable energy platform in Israel, the Middle East, North Africa, Europe, and the United States.
On January 16, UBS analyst Jon Windham raised the firm’s price target on Enlight Renewable Energy Ltd (NASDAQ:ENLT) from $47 to $65, indicating an upside potential of almost 27% from the current share price. The firm maintained its ‘Buy’ rating on ENLT, while calling its valuation attractive. The revision comes on the back of the ongoing support for vertical integration by technology companies seeking to meet electricity demand, while also achieving their clean energy goals.
Similarly, earlier on January 7, Deutsche Bank analyst Corinne Blanchard also slightly increased the firm’s price target on Enlight Renewable Energy Ltd (NASDAQ:ENLT) from $37 to $38, while keeping a ‘Hold’ rating on the shares.
Enlight Renewable Energy Ltd (NASDAQ:ENLT) had a strong year in 2025, posting gains of over 163% during the year. The company is forecasting FY2025 revenue between $555 million and $565 million and adjusted EBITDA between $405 million and $415 million. However, the renewable energy provider is targeting strong growth in the coming years, with projections of a $2 billion annual revenue run rate by the end of 2028.
1. Oklo Inc. (NYSE:OKLO)
Share Price Gains in 2025: 238.01%
Number of Hedge Fund Holders: 38
Topping our list of the Best Performing Utility Stocks in 2025 is Oklo Inc. (NYSE:OKLO). Backed by OpenAI’s Sam Altman, the company develops advanced fission power plants to provide clean, reliable, and affordable energy at scale to customers in the United States.
Oklo Inc. (NYSE:OKLO) received a boost on January 17 when Cathie Wood’s ARK Investment acquired 34,420 shares of the company. This marks the second investment by the prolific investor in the nuclear startup in less than a month, as ARK Investment bought 107,321 shares of Oklo also on December 22, valuing the transaction at over $8.9 million.
Being the poster child for ‘data center nuclear’, Oklo Inc. (NYSE:OKLO) garnered significant investor attention last year. The stock surged by 238% in 2025, driven especially by the multiple contracts that the company has won from the Department of Energy.
Another such contract that it recently signed was on January 7, when Oklo Inc. (NYSE:OKLO) announced that it had struck an agreement with the DoE for the design, construction, and operation of a radioisotope pilot plant under the Reactor Pilot Program. Oklo’s subsidiary, Atomic Alchemy Inc., intends to use the facility to lay the groundwork for future commercial plants that make medical and research radioisotopes, which are essential for diagnosing cancer, treating disease, powering medical research, and supporting national security.
While we acknowledge the potential of OKLO 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 OKLO and that has 100x upside potential, check out our report about this cheapest AI stock.
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