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.
9. Evergy Inc. (NASDAQ:EVRG)
Evergy Inc. (NASDAQ:EVRG) is one of the 10 best regulated electric stocks to buy according to hedge funds.
As of the March 13 closing, Evergy Inc. (NASDAQ:EVRG) carried a moderately bullish consensus sentiment. 6 of the 9 analysts who provided coverage assigned a Buy rating to the stock, while 3 gave Hold calls. With no Sell rating, it has an estimated 1-year median target price of $87.44.
On March 9, Barclays reaffirmed an Overweight rating on Evergy Inc. (NASDAQ:EVRG). The firm also increased its target price on the stock from $82 to $89. The firm acknowledged the company’s base plan, which supports the 8% bottom-line growth target set by the company.
Back on February 23, BMO Capital increased its price target on Evergy Inc. (NASDAQ:EVRG) to $87 from a previous target of $82. The firm maintained its Outperform rating on the company’s shares after its fourth-quarter results.
BMO Capital noted that the company’s results were impacted by unfavorable weather conditions by 2c, convertible notes dilution, and overall demand headwinds. However, investors seemed to be more focused on the company’s outlook, which remained positive.
Evergy Inc. (NASDAQ:EVRG) powers various sectors by generating and distributing electricity from a diverse energy portfolio. Their operations span traditional sources like coal and natural gas, as well as renewable sources like wind and solar. By serving residential, industrial, and municipal clients, they maintain a critical role in providing essential utility services and infrastructure.
8. Entergy Corp. (NYSE:ETR)
Entergy Corp. (NYSE:ETR) is one of the 10 best regulated electric stocks to buy according to hedge funds.
On March 4, KeyBanc increased the firm’s price target on Entergy Corp. (NYSE:ETR) from $102 to $111. The firm maintained an Overweight rating on the shares. KeyBanc noted that the company’s fourth-quarter results came in largely in line with consensus expectations.
Entergy Corp. (NYSE:ETR) also kept its 2026–2029 guidance unchanged while reaffirming its outlook for more than 8% annual EPS growth through 2029. The firm added that the company increased its recently announced 2026–2029 capital plan by $2 billion and also raised its forecast for long-term sales growth.
On February 20, Morgan Stanley Analyst David Arcaro increased the price target for Entergy Corp. (NYSE:ETR) to $98 from &91. The analyst maintained his Equal Weight rating on the stock.
Arcaro’s price target revision comes on the back of Morgan Stanley’s broader adjustments across the Regulated & Diversified Utilities and Independent Power Producers within the North American region.
Entergy Corp. (NYSE:ETR) serves as a major energy producer and distributor, managing a vast portfolio of approximately 25,000 megawatts. The company utilizes a diverse energy mix, including nuclear, solar, and natural gas, to serve over three million utility customers. Its operations span retail distribution, wholesale power sales, and specialized nuclear decommissioning services.
7. Duke Energy Corp. (NYSE:DUK)
Duke Energy Corp. (NYSE:DUK) is one of the 10 best regulated electric stocks to buy according to hedge funds.
On March 9, Duke Energy Corp. (NYSE:DUK) revealed its plans to issue an aggregate principal amount of convertible senior notes due 2029 worth $1 billion. The issue will be conducted through a private placement under the Securities Act of 1933, as amended.
According to the company, the net proceeds of the offering would be used to repay the aggregate notional amount of $1.725 billion on its 4.125% Convertible Senior Notes outstanding, along with any cash to be paid upon conversion. These notes are due April 15, 2026.
On February 20, Morgan Stanley increased the firm’s price target on Duke Energy Corp. (NYSE:DUK) to $139 from $130, while maintaining an Equal Weight rating on the shares. Morgan Stanley said the update comes as it revises price targets across regulated and diversified utilities as well as independent power producers in North America.
The firm noted that utility stocks have underperformed the broader market this month, particularly relative to the S&P 500. Looking ahead to fourth quarter earnings, it expects discussions around data center power demand to remain active, though affordability and political considerations may bring a more balanced tone to the outlook.
Duke Energy Corp. (NYSE:DUK) operates as a diversified energy leader through two primary segments: Electric and Gas Utilities. The company maintains a robust generation portfolio, including nuclear, renewables, and natural gas, to serve residential and industrial sectors. Beyond retail distribution, it manages significant infrastructure through pipeline investments and wholesale electricity sales.
6. CMS Energy Corp. (NYSE:CMS)
CMS Energy Corp. (NYSE:CMS) is one of the 10 best regulated electric stocks to buy according to hedge funds.
As of the March 13 closing, CMS Energy Corp. (NYSE:CMS) carried a moderately bullish consensus sentiment. The stock was assigned Buy ratings from 7 of the 11 analysts who provided coverage. There were 4 Hold ratings and no Sell call. It has a 1-year median target price of $80.64.
On February 20, Morgan Stanley increased the price target for CMS Energy Corp. (NYSE:CMS) shares to $80 from $75. The firm reiterated an Equal Weight rating on the stock, based on revisions to its price target tables for Regulated & Diversified Utilities, and IPPs across North America.
Back on February 9, BMO Capital increased the firm’s price target on CMS Energy Corp. (NYSE:CMS) from $79 to $80. The firm also maintained an Outperform rating on the stock following the company’s fourth-quarter earnings beat.
BMO said that CMS Energy’s refreshed capital investment plan, potential for stronger electricity demand growth, and management’s confidence in Michigan’s regulatory framework stand out as key positives. It added that these factors continue to support the company’s attractive risk/return profile and strengthen the broader investment case for the stock.
CMS Energy Corp. (NYSE:CMS) functions as a tripartite power powerhouse, driving massive scale through its Electric, Gas, and NorthStar Clean Energy segments. By masterfully balancing traditional grids with a sprawling infrastructure of high-voltage lines and storage fields, they deliver seamless energy to millions. Their forward-thinking NorthStar division specifically champions independent renewable generation for a diversified industrial future.
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