In this article, we will look at the 10 Best Regulated Electric Stocks to Buy According to Hedge Funds.
On February 26, A&O Shearman published its outlook on the U.S. renewables and energy landscape, and the takeaways are worth paying attention to for anyone looking at regulated electric stocks in 2026. The report highlighted that demand for energy in the U.S. keeps climbing, pushed higher by data centers, industrial activity, and energy security priorities. Renewable energy, particularly solar, remains a key part of the mix. But the road ahead isn’t without bumps. Tariff volatility, tighter tax credit rules, and growing pressure on residential solar developers are creating a more complicated environment for the sector. As per the report:
The U.S. renewables market is not de-risking through cost declines alone; it is being actively shaped by legal and policy evolution. Energy security is reframing approvals, standards, and subsidies toward reliability, domestic content, and enforceable compliance
That said, the companies that can navigate this, the ones that prioritize reliability, domestic sourcing, and regulatory compliance, are likely to come out ahead. Capital is already moving in that direction. For investors, regulated electric companies with strong fundamentals and grid reliability are becoming an increasingly attractive place to look.
So which regulated electric stocks are worth watching right now? Let’s explore our 10 Best Regulated Electric Stocks to Buy According to Hedge Funds.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed regulated electric companies with market capitalizations above $2 billion. Next, we identified the number of hedge funds that held positions in these stocks by the end of the fourth quarter of 2025. Finally, we selected 10 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
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. Public Service Enterprise Group Inc. (NYSE:PEG)
Public Service Enterprise Group Inc. (NYSE:PEG) is one of the 10 best regulated electric stocks to buy according to hedge funds.
As of the March 13 closing, consensus sentiment for Public Service Enterprise Group Inc. (NYSE:PEG) remained moderately bullish. The stock received coverage from 14 analysts, 7 of whom assigned Buy ratings and 7 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $91.12. This results in an upside potential of almost 9% at prevailing level.
On March 12, J.P. Morgan increased its target price for Public Service Enterprise Group Inc. (NYSE:PEG) from $85 to $90. The firm reiterated a Neutral rating on the stock, based on adjustments to its models across the North American utilities segment.
On February 27, Scotiabank raised the firm’s price target on Public Service Enterprise Group Inc. (NYSE:PEG) to $92 from $91. The firm maintained its Sector Perform rating on the stock. While the firm acknowledges the company’s consistent track record of outperforming its earnings guidance, it anticipates that near-term investor sentiment will remain heavily influenced by rising affordability concerns.
Public Service Enterprise Group Inc. (NYSE:PEG) operates across the electric and gas utility and nuclear generation segments. The company is involved in the transmission and distribution of electricity and natural gas for commercial, industrial, and residential usage. It also operates solar power projects and energy efficiency programs.
