In this article, we will take a look at some of the best regulated electric stocks. On May 21, Reuters reported that U.S. energy storage developers installed a record 9.7 gigawatt-hours of new capacity during the first quarter ending March 2026. This marked a 32% increase from a year earlier, despite underlying challenges facing the clean energy sector.
According to a report by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, demand for energy storage is being driven by the growing power needs of data centers, electricity price volatility, and supply disruptions across global gas and gas turbine markets. Major technology companies have also announced large-scale energy storage procurement agreements to support data centers for artificial intelligence.
Reuters also highlighted ongoing challenges for clean energy development, including tariff pressures and approval delays for key projects. It noted that approvals for 467 solar and storage projects remain pending, and could ultimately be postponed or canceled. Despite this, more than 610 GWh of energy storage capacity is estimated to be added by 2030.
SEIA said energy storage can help improve grid reliability, lower electricity costs, and protect consumers from fuel price shocks. With that background, let’s explore our 11 Best Regulated Electric Stocks to Buy Now.
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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. Also, we only shortlisted stocks with at least 10% upside potential, according to consensus, as of the June 4 close. Finally, we selected 11 stocks with the highest upside 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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
11. WEC Energy Group Inc. (NYSE:WEC)
WEC Energy Group Inc. (NYSE:WEC) is one of the 11 best regulated electric stocks to buy now.
As of June 4 closing, consensus sentiment around WEC Energy Group Inc. (NYSE:WEC) was moderately bullish. 5 of the 12 analysts who provided coverage assigned Buy ratings to the stock, while 6 analysts gave Hold calls. With 1 Sell rating, the stock has a median one-year target price of $123.92, implying double-digit upside potential at the prevailing level.
On May 18, ahead of the American Gas Association’s financial forum, Truist Financial analyst Richard Sunderland revised his price target for WEC Energy Group Inc. (NYSE:WEC) down to $119 from $124. The analyst maintained a Hold rating on the shares.
He noted that sector investment and overall growth expectations continue to move upward since the market is in its third year of the data center wave. Sunderland highlights that vertically integrated electric utilities are positioned as clear winners due to their specific role in building out the infrastructure needed to handle this load growth.
WEC Energy Group Inc. (NYSE:WEC) sells regulated natural gas and electricity, and renewable and non-regulated energy services across the U.S. market. It generates power from solar, hydroelectric, coal, natural gas, oil, nuclear, wind, and biomass. The company also owns electric transmission systems and distributes steam.
10. The Southern Company (NYSE:SO)
The Southern Company (NYSE:SO) is one of the 11 best regulated electric stocks to buy now.
On May 29, Truist analyst Richard Sunderland decreased the price target on The Southern Company (NYSE:SO) from $103 to $100, while reiterating a Hold rating on the stock. The revision was part of a research update that examined the broader Power and Utilities segment.
According to Sunderland, the strategic drivers for the company have been confirmed by the recent earnings call. The company continues to demonstrate solid operational execution around major load growth opportunities. It is also focused on advancing capital investments in new-generation infrastructure. The analyst also noted persistent operational tailwinds within the company’s Southern Power segment.
Back on May 1, Raymond James raised its price target on The Southern Company (NYSE:SO) from $103 to $104. The firm maintained an Outperform rating on the stock. The adjustment is based on Raymond James’ view that, despite modest post-earnings gains, Southern continues to demonstrate solid performance with attractive visibility into future demand.
This is further backed by a sizable contractual pipeline and regulated capital expenditure of roughly $81 billion that would support around 9% baseline growth up until 2030. The firm also noted that better financing transparency would preserve the company’s flexibility to elevate its capital investments, which could offer further upside.
The Southern Company (NYSE:SO) sells electricity to retail and wholesale customers and offers energy-related products and services. The company builds, owns, and runs power generation assets, battery storage projects, and micro-grids for commercial, industrial, and government customers. It also distributes natural gas, provides energy and resilience solutions, and invests in telecommunications.
9. CMS Energy Corp. (NYSE:CMS)
CMS Energy Corp. (NYSE:CMS) is one of the 11 best regulated electric stocks to buy now.
On June 4, BMO Capital analyst James Thalacker maintained an Outperform rating on CMS Energy Corp. (NYSE:CMS) and reduced the price target from $82 to $81. This revision follows a fresh regulatory filing by the company’s subsidiary, Consumers Energy, which submitted an electric rate case application requesting a $456 million increase in its revenue requirement.
The proposed rate structure is built upon a 10.25% return on equity and a 51.75% equity layer. Despite the slight target adjustment, Thalacker reiterated its positive long-term outlook for the utility enterprise, citing above-average EPS and DPS growth trajectories, a highly visible, long-dated capital deployment program, steady operational execution, and a generally supportive regulatory landscape.
On May 18, prior to the American Gas Association’s Financial Forum, Truist updated its stance on CMS Energy Corp. (NYSE:CMS). The firm revised its price target down to $83 from $86, while maintaining the Buy rating previously assigned to the shares. The target adjustment still yields mid-teen upside potential at the prevailing level.
Analyst Richard Sunderland reflected on accelerated investments across the broader sector, attributing it to the ongoing data center wave that is currently in its third year. He also shared his appreciation for vertically integrated electric utilities that are expected to benefit from their role within the required infrastructure development.
CMS Energy Corp. (NYSE:CMS) sells electricity produced from wind, gas, oil, coal, nuclear, and renewable sources. The company also acquires, stores, and delivers natural gas and is engaged in developing and operating independent renewable energy projects.
8. Public Service Enterprise Group Inc. (NYSE:PEG)
Public Service Enterprise Group Inc. (NYSE:PEG) is one of the 11 best regulated electric stocks to buy now.
On May 21, Morgan Stanley decreased the price target from $94 to $89 on Public Service Enterprise Group Inc. (NYSE:PEG) while reaffirming an Overweight rating on the stock. This revision comes on the back of the firm’s broader updates in April across North American Regulated & Diversified Utilities and IPPs.
In detailing the updated industry outlook, the firm noted that the utility sector noticeably underperformed relative to the S&P’s overall return during the month.
Separately, on June 3, Public Service Enterprise Group Inc. (NYSE:PEG) conducted a $500 million public offering of 4.8% Senior Notes payable in 2031. These notes had been issued under a current shelf registration and will be issued to the general public through a major investment banking syndicate. The notes’ issue highlights PSEG’s ongoing utilization of capital markets to meet its long-term funding requirements and balance sheet position.
Under a June 1, 2026, underwriting agreement, the underwriters bought the notes from the company to resell to investors. In order to strengthen its regulatory compliance and transparency for fixed-income based stakeholders, the company also shared a legal opinion from its associate counsel in connection with the issuance, confirming the notes’ validity.
Public Service Enterprise Group Inc. (NYSE:PEG) is engaged in gas utility, electric, and nuclear generation operations, covering the U.S. market. The company delivers electricity and natural gas to commercial, residential, and industrial users. It is also involved in various energy-efficiency initiatives and appliance services, and has invested in several solar projects.
7. Duke Energy Corp. (NYSE:DUK)
Duke Energy Corp. (NYSE:DUK) is one of the 11 best regulated electric stocks to buy now.
On May 12, Duke Energy Corp. (NYSE:DUK) applied for loans from the U.S. Department of Energy (DOE) that could result in billions of dollars in savings for customers as the firm builds capacity, fortifies the electricity grid, and consistently covers some of the nation’s fastest-growing states.
The company is submitting applications for DOE loans to finance proposed investments to consistently meet increasing energy demand at minimal expense to customers. DOE financing would lower interest costs for these crucial investments and directly benefit customers. This is the beginning of a process to determine the final loan amount and terms. With reduced financing costs, DOE financing is anticipated to save customers money.
Back on May 11, Evercore ISI increased its target price for Duke Energy Corp. (NYSE:DUK) from $139 to $140, resulting in an adjusted upside potential of around 13% from the current level. The firm also reiterated an In-Line rating on the stock.
Duke Energy Corp. (NYSE:DUK) sells electricity produced from oil, renewables, nuclear, coal, hydroelectric, and natural gas sources across the Southeast and Midwest. It also offers wholesale power solutions to municipalities and utilities. The company serves customers across industrial, residential, and commercial sectors and is investing in pipelines and storage facilities.
6. Entergy Corp. (NYSE:ETR)
Entergy Corp. (NYSE:ETR) is one of the 11 best regulated electric stocks to buy now.
On June 3, Barclays reduced the price target on Entergy Corp. (NYSE:ETR) from $124 to $119. The firm retained an Overweight rating on the stock. As per the firm, the stock performance has been lackluster since the first quarter’s report, making the June 9 analyst day backdrop more appealing. Barclays thinks Entergy shares are undervalued and provide strong value at the current level.
On May 29, Truist Financial adjusted its price target for Entergy Corp. (NYSE:ETR) to $127 from $130. This leads to a revised upside potential of almost 16% at the current level. The firm maintained a Buy rating on the shares.
Truist Financial expects Entergy to continue bringing in large load announcements over time. The firm noted that the overall data center project pipeline is not softening at all at this current stage. This structural strength remains highly visible even after fully accounting for the conversion of the large Meta Platforms expansion opportunity.
Entergy Corp. (NYSE:ETR) produces power from gas, hydro, solar, coal, and nuclear sources. The company serves both retail and wholesale customers, including utilities, power trading organizations, and cooperatives. The company also owns interests in non-nuclear power plants and offers decommissioning solutions to nuclear plant owners.
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