13 Best Electric Utility Stocks to Buy According to Analysts

Page 1 of 13

In this article, we will discuss the 13 Best Electric Utility Stocks to Buy According to Analysts

As per the Short-Term Energy Outlook by the US Energy Information Administration dated September 9, electricity generation continues to grow rapidly this year, thanks to the increased demand for power from data centers and industrial customers. There are expectations that the total US generation by the electric power sector will see growth of 2.3% in 2025 and a further 3.0% next year. Furthermore, solar power is expected to supply the largest share of the increase in both of these years.

Power Demand to Rise

Reuters, while quoting EIA, noted that the projected power demand is expected to rise to 4,187 billion kilowatt-hours (kWh) in 2025 and 4,305 billion kWh in 2026, reflecting a rise from the record 4,097 billion kWh in 2024. The demand increase stems in part from data centers focused on AI and cryptocurrency, as well as homes and businesses using more electricity and lower fossil fuels for heat and transportation.

Amidst these forecasts, we will now have a look at the 13 Best Electric Utility Stocks to Buy According to Analysts

13 Best Electric Utility Stocks to Buy According to Analysts

Our Methodology

To list the 13 Best Electric Utility Stocks to Buy According to Analysts, we used a screener to shortlist the stocks catering to the broader electric utility sector. After getting an extensive list, we chose the ones for which analysts see upside. Finally, the stocks are arranged in ascending order of their hedge fund sentiments, as of Q2 2025.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

13 Best Electric Utility Stocks to Buy According to Analysts

13. The Southern Company (NYSE:SO)

Average Upside Potential: ~9.2%

Number of Hedge Fund Holders: 48

The Southern Company (NYSE:SO) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 5, Georgia Power received approval from the Georgia Public Service Commission (PSC) to certify 5 new utility-scale solar site power purchase agreements (PPAs) to benefit all customers and to supply the Clean and Renewable Energy Subscription (CARES) 2023 program. Notably, Georgia Power is the largest electric subsidiary of The Southern Company (NYSE:SO).

The new solar facilities, which consist of a total of 1,068 megawatts (MW), will be built and maintained by third-party companies, which successfully bid projects in the CARES 2023 Request for Proposal (RFP) that was approved in the 2022 Integrated Resource Plan (IRP) Final Order. Elsewhere, The Southern Company (NYSE:SO) performed well financially and operationally through H1 2025 and is well-positioned to deliver on 2025 goals.

The Southern Company (NYSE:SO) reported Q2 2025 earnings of $0.9 billion, or $0.80 per share, compared to earnings of $1.2 billion, or $1.10 per share, in Q2 2024. The regulatory outcomes it reached in its service territories reflect its ability to work with all the stakeholders.

Page 1 of 13