13 Best Utility Stocks to Buy According to Analysts

10. Eversource Energy (NYSE:ES)

Average estimated analysts’ upside: 18.85%

Number of Hedge Fund Holders: 39

​Eversource Energy (NYSE:ES) is the largest energy delivery company in New England, serving approximately 4.4 million customers across four main segments: Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution. The company’s advantage is in the highly synergistic nature of its operations, as it delivers all the essential utilities to households and businesses. Furthermore, ES is also investing in grid modernization and electric vehicle infrastructure, which can open new market opportunities for the company.

Eversource Energy (NYSE:ES) delivered strong financial results in 2024 with EPS growing 5.3% YoY, exceeding the midpoint of their revised guidance. The company announced the sale of Aquarion Water at an attractive multiple of 1.7x rate base, with proceeds to be used for debt reduction and reinvestment in regulated utilities. The company has unveiled an updated 5-year capital investment plan that increases investments by nearly 10%, with a majority focused on transmission investments to address aging infrastructure needs.

Looking ahead, Eversource Energy (NYSE:ES) has projected a long-term EPS growth rate of 5-7% based on 2024 non-GAAP recurring EPS of $4.57. The company’s strategic focus includes strengthening its balance sheet, enhancing operational efficiency, and maintaining its commitment to customer service, as evidenced by achieving top decile performance in electric reliability metrics among industry peers. Significant progress has been made in regulatory matters, including constructive rate outcomes and approval of key initiatives such as the Electric Sector Modernization Plan in Massachusetts. The bold transformation plan is backed by 18.85% average analysts’ upside, which makes it one of the best utility stocks on our list.