12 Best Utility Stocks to Buy Now According to Hedge Funds

7. Xcel Energy Inc. (NASDAQ:XEL)

Number of Hedge Fund Holders: 55

Next on our list of the Best Utility Stocks is Xcel Energy Inc. (NASDAQ:XEL). It is a major US electricity and natural gas company with operations in 8 Western and Midwestern states.

On June 23, Mizuho lowered its price target on Xcel Energy Inc. (NASDAQ:XEL) from $94 to $91, but kept its ‘Outperform’ rating on the shares. The revised target still reflects an upside of almost 12% from the current price level.

According to Mizuho, Xcel “remains a dislocated stock despite continued execution in the regulatory environment”. The utility has resolved its Colorado electric, New Mexico electric, and Minnesota gas rate cases, and even received a verbal order regarding its Minnesota electric rate case from the state’s Public Utilities Commission on June 18.

The analyst firm believes that the “regulatory de-risking”, combined with the end of wildfire season in August, could serve as potential catalysts for a re-rating of XEL.

Xcel Energy Inc. (NASDAQ:XEL) is targeting ongoing earnings of $4.04 to $4.16 per share for FY 2026, indicating a YoY growth of almost 8% at the midpoint. Moreover, the company remains confident to deliver 6% to 8+% long-term earnings growth and expects to deliver 9% EPS growth on average through 2030.

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