In this article, we are going to discuss the 13 best electrical infrastructure stocks to buy in 2026.
The US power demand hit its second annual high in 2025, driven primarily by the rapid expansion of data centers and the rise of AI applications, domestic manufacturing growth, and the general electrification of different sectors.
According to the Energy Information Administration (EIA)’s Short-Term Energy Outlook earlier this month, this demand is projected to rise from a record 4,195 billion kWh in 2025 to 4,271 billion kWh in 2026, and then 4,397 billion kWh in 2027.
To keep up with the soaring demand, the country’s utilities are expected to make $240 billion in capital expenditures this year, presenting a historic, multi-billion-dollar opportunity for electrical infrastructure operators. Moreover, the opportunity is expected to sustain in the long run, as Deloitte estimates that the US power sector investments may need to reach $1.4 trillion between 2025 and 2030, with spending remaining high for the next two to three decades.
With that said, here are the Best Electrical Infrastructure Stocks to Buy Now.
Our Methodology
To collect data for this article, we used our screeners to identify electrical infrastructure stocks with the highest number of hedge fund holders at the end of Q1 2026, as per the Insider Monkey database. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best Electrical Infrastructure Stocks to Buy According to Hedge Funds.
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. Insider Monkey’s quarterly newsletter 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).
13. FirstEnergy Corp. (NYSE:FE)
Number of Hedge Fund Holders: 42
FirstEnergy Corp. (NYSE:FE)’s 10 electric distribution companies form one of the nation’s largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.
On June 11, UBS analyst William Appicelli slightly upped the firm’s price objective on FirstEnergy Corp. (NYSE:FE) from $50 to $51, while maintaining a ‘Neutral’ rating on the shares. The target boost implies an upside of almost 10% from the current price level.
In its last earnings call, FirstEnergy Corp. (NYSE:FE) reiterated its core earnings guidance range of $2.62 to $2.82 per share for FY 2026. The growth will be supported by its $6 billion capital investment plan for the year, with a focus on grid modernization, distribution upgrades, and transmission reliability. Moreover, the company reaffirmed its long-term core earnings CAGR guidance of 6% to 8% through 2030, with a target to deliver near the top end of that range.
12. MYR Group Inc. (NASDAQ:MYRG)
Number of Hedge Fund Holders: 43
A holding company of specialty electrical construction companies, MYR Group Inc. (NASDAQ:MYRG) and its subsidiaries provide large-scale electrical construction services throughout the US and Canada.
On June 11, Oppenheimer assumed coverage of MYR Group Inc. (NASDAQ:MYRG) with a ‘Perform’ rating and did not assign the stock a specific price objective.
Oppenheimer highlighted the strong outlook for electrical transmission and distribution (T&D) services, which MYR is positioned well to offer. Moreover, the analyst pointed to the company’s long-term growth prospects in the commercial and industrial business, supported by the rapid expansion of data centers and other complex infrastructure projects.
With MYR Group Inc. (NASDAQ:MYRG) up by over 230% since the beginning of 2026, Oppenheimer believes that investors should be mindful of the stock’s premium valuation compared to its peers, its potential upside versus the 2026 consensus, and the evolving dynamics of T&D margins over time.
MYR Group Inc. (NASDAQ:MYRG)’s total backlog stood at a record $2.84 billion at the end of Q1 2026. The company revealed that it has been awarded multiple data center projects in New Jersey, Arizona, California, and Colorado. It is forecasting a revenue growth of 12% for FY 2026.
11. DTE Energy Company (NYSE:DTE)
Number of Hedge Fund Holders: 43
DTE Energy Company (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide.
On June 15, Wells Fargo lifted its price target on DTE Energy Company (NYSE:DTE) from $160 to $165, while maintaining an ‘Overweight’ rating on the shares. The target boost implies an upside of almost 12% from the current price level.
The move comes after Wells Fargo hosted DTE Energy CEO, Joi Harris, for a well-attended no-deal roadshow in New York City. The energy company continues its efforts to score another large-load deal by year-end. However, it emphasized that its pipeline includes projects of varying sizes, so investors should not over-read if the company’s first announcement is a deal of a smaller size.
The analyst firm noted that DTE is targeting an additional 2 GW of data center load beyond its recent deals with Oracle and Google. Wells highlighted that Google’s load is expected to come online in Q3, while the future deals could follow once they’re approved by Michigan Public Service Commission, which could trigger an upside of over 8% for the stock.
10. Eversource Energy (NYSE:ES)
Number of Hedge Fund Holders: 45
Eversource Energy (NYSE:ES) is an energy provider serving customers in Connecticut, Massachusetts, and New Hampshire.
On June 12, Argus analyst Marie Ferguson downgraded Eversource Energy (NYSE:ES) from Buy to Hold, without assigning the stock a price target.
The downgrade follows a recent order by the Federal Energy Regulatory Commission that has reduced the utility’s electric transmission ROE by 100 basis points, with the adjustment applied retroactively to 2011.
However, the analyst firm highlighted Eversource’s impressive annual dividend yield of over 4.5%, and noted that the company has filed motions seeking to block the FERC order. That said, Argus believes that the utility’s near-term outlook remains uncertain.
Eversource Energy (NYSE:ES) recently revised its FY 2026 earnings guidance in light of the FERC order, which lowered its transmission base ROE to 9.57%. The company now expects an adjusted EPS in the range of $4.57 to $4.72 for the year. However, it reaffirmed its long-term earnings growth rate target of 5% to 7%, off the midpoint of its revised 2026 outlook.
9. Entergy Corporation (NYSE:ETR)
Number of Billionaire Holders: 50
Next on our list of the Best Electrical Infrastructure Stocks is Entergy Corporation (NYSE:ETR). It is an integrated US energy company that provides electricity to more than 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas.
On June 10, BMO Capital lowered its price target on Entergy Corporation (NYSE:ETR) from $127 to $123, while keeping an ‘Outperform’ rating on the shares. The trimmed target still represents an upside of over 10% from the current levels.
According to BMO Capital, Entergy gave a meaningful update on its previously announced agreement with Meta during the Q1 earnings call, but kept subsequent disclosures relatively limited.
In late March, Entergy Corporation (NYSE:ETR) announced a new Electric Service Agreement with Meta for another data center in North Louisiana. According to the company, the Fair Share value from this agreement alone is expected to be $2 billion. The investment includes 7 new combined cycle units, transmission infrastructure, and battery storage facilities. The cost of the proposed facilities will be covered by payments from the tech giant.
8. nVent Electric plc (NYSE:NVT)
Number of Billionaire Holders: 60
nVent Electric plc (NYSE:NVT) is a leading global provider of electrical connection and protection solutions. The company designs, manufactures, markets, installs, and services high-performance products and solutions that connect and protect some of the world’s most sensitive equipment, buildings, and critical processes.
On June 16, Melius Research initiated coverage of nVent Electric plc (NYSE:NVT) with a ‘Buy’ rating and a price target of $214, implying an upside of almost 21% from the current levels.
Similarly, earlier on June 9, Bernstein also began coverage of nVent Electric plc (NYSE:NVT) with an ‘Outperform’ rating and $218 price target.
According to Bernstein, the market is “mispricing” the company’s data center-focused systems protection business. With more and more data centers popping up around the world every day, the analyst firm believes that nVent’s coolant distribution unit technology positions it to become a leading player in the growing liquid cooling market.
The data center momentum was already evident in nVent’s Q1 report, when it delivered record sales, orders, and backlog exceeding forecasts. As a result, the company significantly raised its sales and adjusted EPS guidance for full-year 2026. It now expects organic sales growth of 21% to 23%, up from 10% to 13% previously. Moreover, the firm boosted its adjusted EPS outlook for the year to $4.45 to $4.55, compared to its prior forecast of $4 to $4.15.
7. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 66
Generac Holdings Inc. (NYSE:GNRC) designs, manufactures, and distributes energy technology products and solutions worldwide. The company manufactures the widest range of power products in the marketplace, including portable, residential, commercial, and industrial generators.
On June 15, Generac Holdings Inc. (NYSE:GNRC) announced the acquisition of a new facility in Belvidere, IL, to expand its packaging capacity for large-megawatt generators amid the soaring demand from data centers and other critical industries. The new plant will focus on enclosure assembly and final packaging of shipment-ready units, complementing Generac’s February acquisition of Enercon Engineering.
The latest acquisition is part of Generac’s efforts to bolster its domestic manufacturing footprint and position the company to meet growing demand across key markets. The plant is expected to open in 2027 and will create more than 100 new jobs.
Erik Wilde, EVP and President, Domestic C&I at Generac, commented:
“As demand for reliable backup power continues to grow — particularly from data centers and other mission-critical industries —expanding our capacity to deliver large-megawatt solutions is essential. This investment strengthens our ability to scale efficiently while maintaining the quality and speed our customers expect.”
Generac Holdings Inc. (NYSE:GNRC)’s data center visibility increased in the first quarter, as its backlog rose to more than $700 million. As a result, the company raised its guidance for net sales and adjusted EBITDA for full-year 2026. It now expects consolidated net sales to increase at a mid- to high-teens rate.
6. Eaton Corporation plc (NYSE:ETN)
Number of Hedge Fund Holders: 73
Eaton Corporation plc (NYSE:ETN) is a power management company doing business in more than 160 countries. Its energy-efficient products and services help with effectively managing electrical, hydraulic, and mechanical power more reliably, efficiently, safely, and sustainably.
Eaton Corporation plc (NYSE:ETN) announced on June 11 that it has entered into an agreement with Dana, under which its mobility business will separate and combine with the latter. The deal values Eaton’s Mobility Group at approximately $5.1 billion, and the combined company will be valued at over $10 billion.
Under the terms of the deal, Eaton will receive a cash distribution of around $1.1 billion, subject to adjustments for cash and indebtedness. Moreover, the move will allow the power management company to focus its portfolio on its electrical and aerospace businesses in data centers, aerospace aftermarket, and defense.
The transaction is expected to close in the first quarter of 2027, subject to receipt of approval from Dana shareholders, required regulatory clearances, and customary closing conditions. The new entity, which will operate as Dana Inc., is projected to achieve $250 million of run-rate cost synergies within 24 months of closing.
Paulo Ruiz, CEO of Eaton Corporation plc (NYSE:ETN), stated:
“We are pleased to have reached this agreement, which delivers significant value to Eaton and its shareholders, and represents a major milestone in Eaton’s 2030 growth strategy to lead, invest, and execute for growth. Eaton shareholders will benefit from the meaningful upside created by the combined company, and the transaction will provide substantial cash value for Eaton to deploy to our highest-growth and highest-margin opportunities. Looking ahead, our portfolio will be closely aligned with the powerful megatrends driving generational growth in our Electrical and Aerospace businesses, and we look forward to continuing our momentum to drive meaningful value for our customers and shareholders.”
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