In this article, we discuss 12 high-growth utility stocks to buy now.
According to an October 17 CNBC report, electricity firms in the United States are in a dilemma over how AI demand will shape the industry and how much capacity will actually be required to meet it. The dilemma is partly fuelled by the stock market, which anticipates significant investments in building massive data center infrastructure. Artificial intelligence companies are developing plans to make server infrastructures and facilities that could require as much electricity as entire cities. Consequently, the tech sector is investing in massive projects across several utilities to secure as many power sources as possible.
This data center boom is presenting challenges for utilities in determining the extent of power generation capacity they will need to maintain the integrity of the electric grid. On the downside, household electricity prices are rising as power demand outstrips supply, affecting consumers.
To address these pressures, many utility companies are preparing for significant infrastructure upgrades. According to an S&P Global report published in late September, investor-owned energy and water utility companies in the U.S. are expected to spend substantially over the next several years to meet the growing demand by building incremental capacity in gas, nuclear, renewable, and other power generation sources. In addition, they will be investing in upgrading the resilience of their infrastructure. Advanced technology, including advanced metering, cybersecurity systems, battery storage, and electrified mobility, will also be a key part of their investments.
Such large-scale spending is not only a response to immediate power challenges but also a driver of financial growth within the sector. According to the S&P Global report, capital expenditure is expected to lead to higher rate case proposals and cement larger profits for companies in the utility space. Total energy utility investments are forecasted to stand at $227.80 billion, $233.30 billion, and $214.84 billion in 2026, 2027, and 2028, respectively.
With this outlook in mind, let’s take a look at the high-growth utility stocks to buy now.
Our Methodology
For this list, we picked utility companies that have shown steady, relatively stronger growth than peers over the last few years. To narrow the shortlist, we included only firms with a 5-year average revenue growth rate of at least 5% and positive revenue growth projections for the next financial year. We also set a minimum market cap of $2 billion to focus on larger, more established companies. Moreover, we have presented the hedge fund sentiment for the stocks as of Q2 2025, ranking them in ascending order by the number of hedge fund holders.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12. Chesapeake Utilities Corporation (NYSE:CPK)
Number of Hedge Fund Holders: 16
Average 5-Year Revenue Growth: 10.97%
Chesapeake Utilities Corporation (NYSE:CPK) is one of the best high-growth utility stocks to buy. On October 22, investment bank BTIG started coverage of CPK with a Neutral rating, noting the company’s “best-in-class growth” prospects. The firm noted that Chesapeake delivered revenue growth of nearly 19% over the past year, but this achievement is already priced into the current stock valuation. This reflects modest upside.
BTIG commented on the company’s broadly structured and diversified operations over the past few years, which have cemented its standing in high-growth markets while optimizing the current portfolio.
The investment firm also observed that Chesapeake’s growth potential is in the upper single digits until at least 2028, which adds to its strong market positioning compared to industry peers.
Additionally, the firm said it would require more information about potential gas transmission projects before upping its stance on the stock, but noted that CPK is a “premium utility story” that justifies the valuation multiple it is trading at currently.
Chesapeake Utilities Corporation (NYSE:CPK) was established in 1859 and is based in Dover, Delaware. It is a natural gas distribution company that has two segments: Regulated Energy and Unregulated Energy.
