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
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.
12. DTE Energy Company (NYSE:DTE)
Average Upside Potential: ~10%
Number of Hedge Fund Holders: 39
DTE Energy Company (NYSE:DTE) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 4, DTE Energy (NYSE:DTE) announced that, so far this year, its smart grid devices have prevented over 16,000 outages across the company’s electric service territory. Notably, ramping up the deployment of such smart devices remains a key component of DTE Energy (NYSE:DTE)’s 5-year, $10 billion plan to build the electric grid of the future and reduce power outages by 30% and cut outage time in half by 2029 end.
DTE Energy (NYSE:DTE) invested over $1.8 billion into the utilities during H1 2025 and remains on pace to invest $4.4 billion this year, focused on improving safety and reliability of the electric and natural gas infrastructure and transforming the generation fleet to deliver cleaner energy. DTE Energy (NYSE:DTE)’s operating earnings for Q2 2025 came in at $283 million compared to 2024 operating earnings of $296 million. The company confirmed its 2025 operating EPS guidance of $7.09 – $7.23.
11. Duke Energy Corporation (NYSE:DUK)
Average Upside Potential: ~10%
Number of Hedge Fund Holders: 27
Duke Energy Corporation (NYSE:DUK) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 7, BMO Capital analyst James Thalacker maintained the bullish stance on the company’s stock, giving a “Buy” rating and the price objective of $132. The analyst’s rating is backed by several key factors demonstrating Duke Energy Corporation (NYSE:DUK)’s healthy financial and operational outlook. The management team showcased confidence in meeting short-term and long-term financial targets, thanks to the strong balance sheet and expected growth in gas sales.
Furthermore, the analyst opines that Duke Energy Corporation (NYSE:DUK) is poised for strong sales and EPS growth starting in 2027, thanks to the data center and economic development. The sustainability of asset growth is further strengthened by cost reduction initiatives and merger savings. Also, Duke Energy Corporation (NYSE:DUK)’s diversified operations and supportive regulatory environment improve its premium profile. Its commitment to maintain customer affordability and attract demand growth via economic development and data center opportunities remains evident, opines the analyst.
Duke Energy Corporation (NYSE:DUK) operates as an energy company. The company carries out operations via 2 segments: Electric Utilities and Infrastructure (EU&I), and Gas Utilities and Infrastructure (GU&I).
10. Exelon Corporation (NASDAQ:EXC)
Average Upside Potential: ~11%
Number of Hedge Fund Holders: 39
Exelon Corporation (NASDAQ:EXC) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 10, ComEd, which is a unit of Exelon Corporation (NASDAQ:EXC), announced the start of its vehicle-to-grid (V2G) charging pilot’s testing phase with 3 Illinois school districts. The V2G charging pilot will evaluate the technology, which can allow bidirectional charging with electric school buses to enhance energy optimization, support grid stability, and develop new ways for customers to potentially lower their energy usage during peak demand times. The V2G pilot is one of 8 pilots outlined in ComEd’s multi-year Beneficial Electrification (BE) plan.
ComEd announced the recently approved second BE plan, which continues the investments started as part of BE Plan 1 and prioritizes funding for V2G as part of the BE Research and Development Program for the 2026-2028 period. Elsewhere, Exelon Corporation (NASDAQ:EXC)’s Q2 2025 performance demonstrates its disciplined execution throughout all fronts. The company delivered Q2 2025 adjusted operating earnings of $0.39 per share. Furthermore, Exelon Corporation (NASDAQ:EXC) reaffirmed its operating EPS compounded annual growth of 5%-7% from 2024 to 2028.
Exelon Corporation (NASDAQ:EXC) is engaged in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, as well as distribution of natural gas to retail customers.
9. CMS Energy Corporation (NYSE:CMS)
Average Upside Potential: ~11.4%
Number of Hedge Fund Holders: 38
CMS Energy Corporation (NYSE:CMS) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 9, Consumers Energy announced that it signed a purchase agreement to sell 13 hydroelectric dams along 5 Michigan rivers to Confluence Hydro, which is an affiliate of Hull Street Energy, LLC. To give a brief perspective, CMS Energy Corporation (NYSE:CMS) is an energy provider featuring Consumers Energy as the primary business.
The sale of dams is the best path forward for the customers. It balances 2 important needs, to reduce costs for Consumers Energy’s customers while caring for communities that depend on the dams. Elsewhere, on an adjusted EPS basis year to date, CMS Energy Corporation (NYSE:CMS) reported $1.73 per share in 2025 as compared to $1.63 per share in 2024. This was due to the constructive regulatory outcomes, cost-reduction initiatives, and favorable weather.
CMS Energy Corporation (NYSE:CMS) also reaffirmed the 2025 adjusted earnings guidance of $3.54 – $3.60 per share and long-term adjusted EPS growth of 6% – 8%, with continued confidence towards the high end.
8. Pinnacle West Capital Corporation (NYSE:PNW)
Average Upside Potential: ~12.3%
Number of Hedge Fund Holders: 41
Pinnacle West Capital Corporation (NYSE:PNW) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 9, Mizuho downgraded the company’s stock to “Neutral” from “Outperform” with a price objective of $90, down from the prior target of $102, as reported by The Fly. The downgrade comes even though the company’s ~5% load growth is supported by large manufacturing facilities and data centers, as the firm’s updated forecast model showcases that regulatory lag will diminish most of the expected accretion until 2028/29.
As per the firm, while Pinnacle West Capital Corporation (NYSE:PNW)’s shares have lagged peers YTD, consensus estimates are expected to come down, pressuring the company’s shares as investors look towards 2026. Pinnacle West Capital Corporation (NYSE:PNW) stated that while its Q2 2025 results were within its expectations, they were lower compared to the same period in 2024, largely due to the cooler weather as compared to the previous year’s record-high temperatures, including the hottest June on record. For 2025, Pinnacle West Capital Corporation (NYSE:PNW) expects that the consolidated earnings will be between $4.40 – $4.60 per diluted share on a weather-normalized basis.
7. Avista Corporation (NYSE:AVA)
Average Upside Potential: ~15.3%
Number of Hedge Fund Holders: 27
Avista Corporation (NYSE:AVA) is one of the Best Electric Utility Stocks to Buy According to Analysts. On August 29, the company made an annual rate adjustment filings with the Washington Utilities and Transportation Commission that, if approved, will lead to an overall decrease in natural gas rates of 8.6% and an overall increase in electric rates of 1.7%. Notably, 5 electric adjustments were filed, which, if approved, are designed to change overall electric revenues.
Avista Corporation (NYSE:AVA) announced results for 3 months ended June 30, 2025 (Q2 2025) and on a YTD basis. Its electric utility margin rose because of the effects of its general rate cases, customer growth, and non-decoupled load growth. The company had a $9 million pre-tax expense under the Energy Recovery Mechanism (ERM) in H1 2025 as compared to $5 million pre-tax expense in H1 2024. Avista Corporation (NYSE:AVA) expects Avista Utilities to contribute towards the upper end of a range of $2.43 – $2.61 per diluted share in 2025. This is because of healthy performance, cost management, and constructive regulatory outcomes.
6. NextEra Energy, Inc. (NYSE:NEE)
Average Upside Potential: ~17.4%
Number of Hedge Fund Holders: 66
NextEra Energy, Inc. (NYSE:NEE) is one of the Best Electric Utility Stocks to Buy According to Analysts. On August 29, UBS reiterated its Buy rating on the company’s stock, maintaining its price objective of $84.00. As per the investment firm, the recent developments related to the solar import reviews and an alternative rate settlement for Florida Power & Light (FPL) are distractions, which do not change the fundamental investment thesis. UBS opines that NextEra Energy, Inc. (NYSE:NEE) deserves a valuation premium as compared to other utility stocks.
NextEra Energy, Inc. (NYSE:NEE) delivered healthy Q2 2025 results with adjusted EPS rising by 9.4% YoY. The continued robust financial and operational performance at FPL and NextEra Energy Resources positions it well to meet the overall objectives. During Q2 2025, FPL invested in its business to serve Florida’s growing population while, at the same time, keeping reliability high and rates low. NextEra Energy Resources witnessed a strong origination quarter, adding 3.2 gigawatts of new renewables and storage to its backlog.
5. Edison International (NYSE:EIX)
Average Upside Potential: ~18.3%
Number of Hedge Fund Holders: 42
Edison International (NYSE:EIX) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 10, UBS reduced the price objective on the company’s stock to $66 from $68, while keeping a “Buy” rating, as reported by The Fly. As per the firm, reports of work happening on investment securitization legislation, which may include a wildfire amendment consistent with concepts of Governor Newsom’s proposal, “California Lawmakers Reach Initial Agreement on Wildfire Fund,” will be a catalyst for Edison International (NYSE:EIX)’s stock.
However, UBS revised its price objective lower to reflect the change in the utility group’s average multiple, as highlighted by the analyst. Elsewhere, Edison International (NYSE:EIX) reported Q2 2025 net income of $343 million as compared to net income of $439 million in Q2 2024. Southern California Edison’s Q2 2025 core EPS fell YoY, mainly because of the higher operations and maintenance expense and the net impact of regulatory decisions received in each period. Edison International (NYSE:EIX) also announced that the California Legislature approved Senate Bill (SB) 254.
Edison International (NYSE:EIX) is the ultimate parent holding company of Southern California Edison and Edison Energy, LLC, doing business as Trio.
4. Brookfield Infrastructure Partners L.P. (NYSE:BIP)
Average Upside Potential: ~24.7%
Number of Hedge Fund Holders: 6
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is one of the Best Electric Utility Stocks to Buy According to Analysts. On August 28, Jefferies resumed coverage of the company’s stock with a “Buy” rating and a price objective of $35, as reported by The Fly. The research firm highlighted Brookfield Infrastructure Partners L.P. (NYSE:BIP)’s unique position with its global footprint throughout Transport, Utilities, Midstream, and Data sectors. Furthermore, the firm believes that while the company’s YTD acquisitions have been mainly focused on the US, the company continued to progress with capital recycling.
Brookfield Infrastructure Partners L.P. (NYSE:BIP) highlighted that it saw an active Q2 2025 with its capital recycling strategy. It made 3 marquee acquisitions and also garnered significant proceeds from asset sales. Brookfield Infrastructure Partners L.P. (NYSE:BIP)’s ability to consistently purchase high-quality assets for value and monetize mature investments at attractive returns makes its platform stand apart and places it to self-fund a growing pipeline of opportunities. The company reported net income of $69 million in Q2 2025 as compared to $8 million in the prior year. Its Q2 2025 results were aided by healthy operational performance and realized gains associated with its capital recycling activities.
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is engaged in the utilities, transport, midstream, and data businesses. Its utilities business comprises businesses providing regulated transmission and distribution of electricity and natural gas.
3. PG&E Corporation (NYSE:PCG)
Average Upside Potential: ~37.9%
Number of Hedge Fund Holders: 77
PG&E Corporation (NYSE:PCG) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 11, James Thalacker, an analyst from BMO Capital, maintained a “Buy” rating on the company’s stock. The associated price target remained same at $23.00. The analyst believes that PG&E Corporation (NYSE:PCG)’s shares are currently perceived to be undervalued, despite healthy EPS and rate base growth. Furthermore, the potential for multiple expansion is helped by numerous catalysts, such as an upgrade to investment grade as well as growing dividend yield, added the analyst.
PG&E Corporation (NYSE:PCG) updated its FY 2025 GAAP earnings guidance to between $1.26 – $1.32 per share, from the range of $1.29 to $1.35 per share. The factors likely to drive GAAP earnings consist of customer capital investment and costs associated with unrecoverable interest expense of $350 million – $400 million after tax and other earnings factors, which include allowance for funds used during construction, incentive revenues, tax benefits, and cost savings, net of below-the-line costs.
2. Pampa Energía S.A. (NYSE:PAM)
Average Upside Potential: ~43.5%
Number of Hedge Fund Holders: 12
Pampa Energía S.A. (NYSE:PAM) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 8, the company announced that its Board of Directors approved the 14th Share Repurchase Program for up to US$100 million or 10% of the share capital, and a maximum price to be paid of US$60 per ADR, effective for 120 days. Pampa Energía S.A. (NYSE:PAM) recorded sales of US$486 million in Q2 2025, reflecting a decline of 3% YoY. This was due to the lower deliveries under the Plan Gas Long-term gas sale agreement and a drop in petrochemical and crude oil prices.
However, this was partially mitigated by the contributions from Parque Eólico Pampa Energía 6, increased spot energy prices, and higher export volumes of gas, crude, and reformer products. Pampa Energía S.A. (NYSE:PAM)’s net debt totaled US$712 million, demonstrating a net-debt to EBITDA ratio of 1.1x, mainly because of the higher working capital needs and continued investments in the development of Rincón de Aranda.
1. Central Puerto S.A. (NYSE:CEPU)
Average Upside Potential: ~71.0%
Number of Hedge Fund Holders: 8
Central Puerto S.A. (NYSE:CEPU) is one of the Best Electric Utility Stocks to Buy According to Analysts. On September 10, 2025, Central Puerto S.A. (NYSE:CEPU) announced completing the spin-off-merger with ECOGAS Inversiones S.A. The corporate reorganization consists of transferring equity and issuing new shares, which will affect the company’s shareholder structure and market operations. The move is projected to streamline operations and enhance shareholder value.
Elsewhere, Central Puerto S.A. (NYSE:CEPU) posted adjusted EBITDA of US$61.4 million in Q2 2025, a reduction of 32% compared to US$89.9 million in Q1 2025, and an improvement of 35% compared to Q2 2024 adjusted EBITDA. The company’s revenues in Q2 2025 totalled US$179.6 million, representing 8% decline compared to Q1 2025 (US$196.2 million) and a rise of 7% compared to Q2 2024. The revenues from energy sales accounted for 89.6% of the total revenues. Central Puerto S.A. (NYSE:CEPU)’s capital expenditures in Q1 2025 and Q2 2025 came in at US$102.4 million, while its cash and cash equivalents and current financial assets balance at the end of the period (as of June 30, 2025) came to US$235.2 million.
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