In this article, we will take a detailed look at the best utility stocks to buy according to analysts.
Utility stocks represent companies primarily engaged in providing electricity, natural gas, and water distribution services, which are considered essential for households and most businesses. These companies are characterized by stable revenue streams, regulated operations, and often predictable earnings, making them attractive investment opportunities for risk-averse investors or those seeking steady income through dividends. The utility stocks are typically low-growth, as they operate in mature and well-established markets that only grow according to demographic trends, which are typically in low single digits. For these reasons, many investors have overlooked this sector, especially considering that it comprises less than 3% of the entire US stock market capitalization, making it relatively insignificant.
Despite its drawbacks, the utility sector becomes particularly appealing during periods of economic uncertainty or downturns, as the defensive nature of their business allows them to deliver more consistent returns and often hold their value while the overall market declines. With the broader market currently entering its first death-cross since 2022, the question of hedging one’s portfolio with defensive stocks becomes increasingly more relevant. There are solid reasons to believe that, similar to 2022, when a 12-month-long bear market kicked in with the emergence of a death-cross on the technical chart, the US stock market will now enter a prolonged bear market as well.
READ ALSO: 12 Best Electric Utility Stocks to Buy Now
First of all, it is well-known that the current market correction has been fueled by the Trump Tariff Turmoil, which cast a lot of uncertainty on consumption, Capex projects, and overall spending outlook in the US. We believe, however, that the root cause of President Trump’s action represents the attempt to normalize the country’s budget deficits, which have become critical in the last months. The US budget for 1H 2025 has been released, and it shows $2.3 trillion in tax revenues, $3.6 trillion in expenditures, for a total $1.3 trillion deficit. More importantly, the interest payments on the massive public debt represent a whopping ~26% of total tax revenue. To balance the budget, taxes would have to rise by an astounding 57%, or spending would have to be cut by 36%, both of which seem completely unrealistic in the current reality.
This leads to the possibility that $390 billion worth of tax cuts that expire this year will not be extended. Also, the previously promised tax cuts seem very unlikely – this was an important card in the President’s sleeve, which now seems unlikely to be played any time soon. In this context, the current administration has no means to provide any short-term boost to corporate earnings if the market dips too low. Under such a scenario, utility stocks appear like a safe haven to safeguard one’s funds while earning a solid dividend yield, which most of the companies provide.
Besides its defensive nature, the utility sector entered a period of acceleration in the business – the sector’s outperformance actually started at the beginning of 2024 due to the AI megatrend. Fidelity claims that there is a once-in-a-generation opportunity with utility stocks as their previous anemic 1-2% growth has the potential to increase to 6-8% over the next 10 years, which will also provide a substantial expansion in their valuation multiples. The main driver of this expected acceleration is coming from AI:
“The rapidly developing technology of artificial intelligence is proving to be a significant boost to predicted energy demand over the next decade. AI requires immense computational power, storage space, and low-latency networking for training and running models. These applications are usually hosted in data centers. As AI continues to become more ubiquitous, the energy demands from data centers will grow exponentially, which I believe will translate to higher earnings growth for certain utilities.
Driven by these trends, energy demand is forecasted to grow over 38% over the next 2 decades. Regulated utilities will need to build new power plants to satisfy this surge in demand. Deregulated utilities should also benefit. As reserve margins are tightening, power prices for existing energy should also increase.”
All in all, the key takeaway for readers is that the utility sector is favored by both its defensive nature as well as the large-scale acceleration in electricity demand due to the AI trend. Consequently, we are currently at an opportune moment to invest in the best utility stocks, which are discussed below.
An aerial view of the energy producing facility, highlighting its potential of providing utilities to the public.
Our Methodology
To compile our list of best utility stocks, we use a stock screener to filter for utility stocks with positive average upside from sell-side analysts as of April 16. Then we included in the article the top 13 stocks with the largest average analysts’ upside. For each stock, we also included the largest number of hedge funds that own the stock as of Q4 2024, as per Insider Monkey’s database.
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. Essential Utilities, Inc. (NYSE:WTRG)
Average estimated analysts’ upside: 12.75%
Number of Hedge Fund Holders: 13
Essential Utilities, Inc. (NYSE:WTRG) is a US-based operator of regulated utilities providing water, wastewater, and natural gas services. WTRG serves approximately 5.5 million customers across Pennsylvania, Texas, Illinois, North Carolina, New Jersey, Ohio, Indiana, Virginia, and Kentucky. In addition to its core utility services, the company also offers service line protection solutions and repair services to households. WTRG ranked seventh on our list of 10 High Growth Utility Stocks To Invest In.
Essential Utilities, Inc. (NYSE:WTRG) delivered strong financial performance in 2024, achieving GAAP EPS of $2.17, in line with the initial guidance of 5-7% YoY growth. The company successfully executed two large rate cases in Pennsylvania Gas and Pennsylvania Water, with total annualized rate and surcharge increases of approximately $148 million in 2024. Operating expenses were well-controlled with only a 2% increase YoY, while the company completed its $1.3 billion capital plan on target.
Essential Utilities, Inc. (NYSE:WTRG) has provided clear growth guidance, projecting 5-7% compound annual EPS growth through 2027. The company plans to invest approximately $7.8 billion in infrastructure over the next five years, expecting to achieve a combined water and gas rate base growth of over 8% through 2029. The company maintains a strong acquisition pipeline with six signed asset purchase agreements across three states, totaling approximately $344 million in purchase price and adding over 210,000 customer equivalents. Additionally, the company is exploring potential opportunities in data center development, with discussions underway for up to 5 gigawatts of needed power generation in the Pittsburgh region. With a 12.75% estimated average analysts’ upside and strong long-term guidance in place, WTRG is one of the best utility stocks to consider.
12. Sempra (NYSE:SRE)
Average estimated analysts’ upside: 12.95%
Number of Hedge Fund Holders: 34
Sempra (NYSE:SRE) is a North American energy infrastructure company that serves nearly 40 million consumers across large US states like California, Texas, as well as Mexico and other global markets. The company’s advantage consists of the large scale of operations, especially in Texas, where it operates the largest electric transmission and distribution system. Sempra Infrastructure segment focuses on liquefied natural gas, energy networks, and low-carbon solutions.
Sempra (NYSE:SRE) delivered adjusted EPS of $4.65 for 2024, slightly below the midpoint of their guidance range. The company has revised its 2025 EPS guidance to $4.30-$4.70 and announced 2026 EPS guidance of $4.80-$5.30, representing approximately 12% growth from the 2025 midpoint. Notably, SRE is raising its projected long-term EPS growth rate to 7-9%, driven by remarkable growth in earnings expected from Sempra Texas. The company has announced a new record capital plan of $56 billion for 2025-2029, representing a 16% increase over the prior plan, with over half driven by opportunities at Oncor. The optimistic guidance, coupled with double-digit average analysts’ upside, makes us include SRE on our list of the best utility stocks to buy.
In Texas, Sempra (NYSE:SRE) is experiencing unprecedented growth, with transmission interconnection requests growing 27% in 2024, and the total amount of commercial and industrial load seeking transmission interconnection equaling 137 gigawatts, an approximately 250% increase from 2023. The company’s strategy centers on making disciplined investments in good businesses where they can earn quality returns while building scale advantages in large economic markets with favorable regulation. SRE’s Board has approved increasing the company’s annualized dividend for the 15th consecutive year to $2.58 per share, demonstrating its commitment to providing investors with competitive total returns.
11. NRG Energy, Inc. (NYSE:NRG)
Average estimated analysts’ upside: 17.29%
Number of Hedge Fund Holders: 53
NRG Energy, Inc. (NYSE:NRG) operates across three primary segments: Texas, East, and West/Services/Other, providing electricity and natural gas to residential, commercial, and industrial customers. The company’s generation portfolio includes approximately 13 gigawatts of fossil fuel and renewable capacity across 18 plants, which allows it to successfully serve over 6 million customers across 24 US states and some parts of Canada. NRG is actively investing in new natural gas power plants to meet the growing electricity demand from data centers, particularly in Texas and the Northeast.
NRG Energy, Inc. (NYSE:NRG) delivered exceptional performance in 2024, exceeding the high end of its raised EPS guidance with adjusted EPS of $6.83 per share, marking a 45% increase from 2023. The company achieved record financial performance with the highest adjusted EBITDA and free cash flow before growth in its history, driven by expanded power and natural gas margins in the East and West, customer growth in the East, and expanded margins in Smart Home. Texas operations showed impressive momentum as well, delivering approximately $150 million higher YoY earnings when adjusted for asset sales and planned maintenance, despite milder weather.
NRG Energy, Inc. (NYSE:NRG) announced significant strategic initiatives, including a landmark collaboration with GE Vernova and Kiewit to accelerate natural gas generation development, along with multiple letters of intent with data center developers. NRG is targeting at least 10% EPS CAGR growth through 2029 through their base plan, with additional upside potential from power market trends, site monetization, and their data center strategy. The company is well-positioned in the emerging power demand super cycle, with plans to develop 5.4 gigawatts of capacity by 2032 and the capability to support at least 15 gigawatts of potential capacity across its sites. The sell-side optimism around NRG is further reinforced by the company being a strong outperformer of the broad market since 2023, making it one of the best utility stocks to consider in 2025.
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.
9. PG&E Corporation (NYSE:PCG)
Average estimated analysts’ upside: 19.00%
Number of Hedge Fund Holders: 74
PG&E Corporation (NYSE:PCG) is one of the largest combined natural gas and electric utilities in the United States, serving approximately 16 million people in northern and central California, providing electricity and natural gas services. The company’s energy generation portfolio comprises nuclear, hydroelectric, natural gas, and renewable sources.
PG&E Corporation (NYSE:PCG) delivered strong financial results in 2024, achieving core earnings per share of $1.36, representing an 11% growth over 2023. The company has updated its 2025 guidance range with a midpoint up 10% from 2024 results, and maintains its EPS growth guidance of at least 9% annually through 2028. Notable achievements include completing the equity funding needs for their $63 billion capital investment plan through 2028, increasing the annual dividend rate to $0.10 for 2025, and achieving a 4% reduction in nonfuel costs in 2024. Management’s strong long-term guidance is also backed by high conviction from hedge funds and sell-side analysts, who estimate an average 19% upside, making PCG one of the best utility stocks to consider.
PG&E Corporation (NYSE:PCG) is experiencing significant growth potential from data center demand, with formal applications representing 5.5 gigawatts of new potential data center load in its pipeline. Of this, 1.4 gigawatts has passed through preliminary engineering studies, with over 90% projected to come online before the end of 2030. Management estimates that for every 1,000 megawatts of new electric demand from data centers, customers may save between 1% to 2% of their electricity bill, creating room to make the grid safer and more resilient at a lower cost.
8. GE Vernova Inc. (NYSE:GEV)
Average estimated analysts’ upside: 21.31%
Number of Hedge Fund Holders: 111
GE Vernova Inc. (NYSE:GEV) is a spin-off from General Electric that went public in 2024 and operates through three main segments: Power, Wind, and Electrification. The Power segment manufactures and services gas, nuclear, hydro, and steam technologies, while the Wind segment offers onshore and offshore wind turbines and blades. The Electrification segment provides grid solutions, power conversion, solar and storage solutions, and electrification software for electricity operations. GEV ranked 1st on our recent list of 10 Best Hydrogen Stocks to Buy According to Billionaires.
GE Vernova Inc. (NYSE:GEV) demonstrated strong performance in 2024, booking $44 billion in orders with $35 billion in revenue, while achieving EBITDA margin expansion across all segments and generating over $1 billion improvement in free cash flow. The company grew its backlog to $119 billion and nearly doubled its cash balance to over $8 billion since the spin, partly through strategic value creation opportunities such as partial stake sales of GEV T&D India and China XD Electric, which generated $1.3 billion of pretax proceeds.
GE Vernova Inc. (NYSE:GEV) is experiencing robust market demand, particularly in Power, where gas generation drove significant orders growth, with approximately 20 gigawatts of gas orders booked in 2024, double the previous year’s level, and securing 9 gigawatts of slot reservation agreements for 2025-2026 deliveries. In Electrification, demand remains strong with equipment orders more than doubling in Q4 2024, driven by customers modernizing and investing in critical grid components, while the Wind segment showed progress in its turnaround, cutting EBITDA losses by almost half despite lower revenues. The company is positioning itself for future growth by expanding production capacity to produce 70 to 80 heavy-duty gas turbines per year beginning in the second half of 2026, up from 48 currently. Besides a 21.31% estimated average analysts’ upside, GEV is also widely held by hedge funds, making it one of the best utility stocks on our list.
7. Edison International (NYSE:EIX)
Average estimated analysts’ upside: 21.35%
Number of Hedge Fund Holders: 38
Edison International (NYSE:EIX) is a US-based electric utility company that primarily serves 15 million people in southern California, providing electricity to residential, commercial, and industrial customers. The company’s operations encompass electricity generation, transmission, and distribution, with a focus on integrating renewable energy sources and enhancing grid reliability.
Edison International (NYSE:EIX) reported core EPS of $4.93 for 2024, exceeding the midpoint of their guidance and extending their track record of meeting or exceeding annual EPS guidance over the last two decades. The company remains confident in meeting its 2025 EPS guidance and delivering a 5% to 7% core EPS CAGR through 2028. The Board declared a Q1 2025 dividend of $0.8275 per share, demonstrating confidence in their financial outlook and ability to raise cost-effective capital.
On the regulatory front, Edison International (NYSE:EIX) successfully recovered about $1.6 billion of wildfire claims payments and associated costs. The company continues to execute its robust wildfire mitigation plan, having installed more than 6,400 miles of covered conductor and hardened nearly 90% of distribution lines in high fire risk areas. In response to recent wildfires, EIX is actively engaged in conversations with key stakeholders, including the Governor’s office and legislative leaders, to find solutions that support community safety, manage customer costs, and reinforce investor confidence in California’s utilities. We include EIX on our list of the best utility stocks to buy because the management’s optimistic long-term guidance is backed by a reliable track record of flawless execution over the last 2 decades.
6. NextEra Energy, Inc. (NYSE:NEE)
Average estimated analysts’ upside: 23.28%
Number of Hedge Fund Holders: 84
NextEra Energy, Inc. (NYSE:NEE) is a leading clean energy company that provides regulated electricity to approximately 5.9 million customer accounts across Florida. The company is also the world’s largest generator of renewable energy from wind and solar sources. Besides that, it offers battery storage solutions and operates seven commercial nuclear power units in Florida, New Hampshire, and Wisconsin. NEE ranked fourth on our recent list of 12 Best Renewable Energy Stocks to Buy in 2025.
NextEra Energy, Inc. (NYSE:NEE) delivered strong operational and financial performance in 2024, achieving full-year adjusted EPS of $3.43, up over 8% from 2023 and at the high end of expectations. The company has maintained industry-leading performance, delivering compound annual growth in adjusted EPS of over 10% since 2021, the highest among all top 10 power companies, making it one of the best utility stocks on our list. In 2024, NEE and its subsidiaries placed approximately 8.7 gigawatts of new renewables and storage projects into service, demonstrating strong execution capabilities.
NextEra Energy, Inc. (NYSE:NEE) plans to invest roughly $120 billion across the country over the next 4 years, aiming to grow its combined fleet to approximately 121 gigawatts. Energy Resources segment achieved record renewables and storage origination in 2024, adding more than 12 gigawatts to their backlog, including approximately 3.3 gigawatts since their last earnings call. The company announced a strategic framework agreement with GE Vernova to build natural gas power generation solutions, strengthening its comprehensive power generation portfolio to meet growing customer demands.
5. Brookfield Renewable Corporation (NYSE:BEPC)
Average estimated analysts’ upside: 24.74%
Number of Hedge Fund Holders: 19
Brookfield Renewable Corporation (NYSE:BEPC) operates as one of the world’s largest publicly traded platforms for renewable power and decarbonization solutions. Its diversified portfolio includes hydroelectric, wind, solar, and sustainable solutions across five continents, with an installed capacity of approximately 33,000 megawatts and a development pipeline of around 155,400 megawatts.
Brookfield Renewable Corporation (NYSE:BEPC) delivered record results in 2024, achieving 10% funds from operations growth on a YoY basis, driven by inflation-linked contracted cash flows, acquisitions, and the successful execution of organic growth initiatives. The company exceeded capital deployment targets by investing $12.5 billion, including a record 7,000 megawatts of new capacity globally. It generated record proceeds of $2.8 billion from asset recycling at an average return of 25% IRR and approximately 2.5x on invested capital.
Brookfield Renewable Corporation (NYSE:BEPC) is experiencing a dramatic shift in electricity demand driven by the AI revolution, creating significant opportunities for growth. Despite weaker sentiment in public markets stemming from US policy uncertainties, the fundamentals for energy have never been better, with low-cost renewable technologies seeing greater demand than ever before. The company’s focus on the lowest-cost mature renewables technologies, combined with its extensive 200,000-megawatt development pipeline concentrated in top data center markets, positions it well to capture accelerating corporate demand. BEPC is strongly backed by sell-side analysts, estimating an average upside of 24.74%, which guarantees the stock’s fifth place on our list of the best utility stocks to buy.
4. Talen Energy Corporation (NASDAQ:TLN)
Average estimated analysts’ upside: 27.85%
Number of Hedge Fund Holders: 77
Talen Energy Corporation (NASDAQ:TLN) is an independent power producer and energy infrastructure company that owns and operates approximately 10.7 gigawatts of power generation across the US. Its fleet comprises nuclear, natural gas, coal, and oil-fired facilities primarily situated in the Mid-Atlantic region and Montana, where it sells electricity into wholesale US power markets. With a 27.85% average analysts’ upside, TLN is one of the best utility stocks included on our list.
Talen Energy Corporation (NASDAQ:TLN) delivered strong financial results in 2024, generating $770 million in adjusted EBITDA and $283 million in adjusted free cash flow, while achieving record levels of safety and reliability. The company has reaffirmed its 2025 guidance with an adjusted EBITDA range of $925 million to $1.175 billion and an adjusted free cash flow range of $395 million to $595 million. The company’s financial position is further strengthened by approximately $1.2 billion of liquidity, with over $470 million of cash on the balance sheet and a net leverage ratio of 3.3x for 2024.
Talen Energy Corporation (NASDAQ:TLN) continues to execute on its AWS contract signed in March 2024, with the site currently being electrified and generating revenues. The company secured a reliability-must-run agreement that extends the life of Brandon Shores and Wagner plants through May 2029, providing annual payments of $145 million for Brandon Shores and $35 million for Wagner, plus reimbursement for variable costs and project investments. Since the start of 2024, the company has demonstrated its commitment to shareholder returns by repurchasing approximately 13 million shares, or 22% of outstanding shares, returning nearly $2 billion of capital to shareholders, representing 75% of the market cap since its emergence.
3. The AES Corporation (NYSE:AES)
Average estimated analysts’ upside: 42.45%
Number of Hedge Fund Holders: 53
The AES Corporation (NYSE:AES)’s global business is organized into four segments: Renewables, Utilities, Energy Infrastructure, and New Energy Technologies. The Renewables segment includes solar, wind, hydroelectric, and energy storage facilities. The Utilities segment comprises regulated electricity to residential, commercial, and industrial customers. The Energy Infrastructure segment encompasses thermal generation assets, including natural gas, LNG, coal, and oil-fired plants. The New Energy Technologies segment focuses on digital energy solutions.
The AES Corporation (NYSE:AES) achieved adjusted EBITDA of $2.64 billion in 2024, landing in the lower half of guidance due to weather-related events in Colombia and Brazil, while generating parent free cash flow of $1.1 billion at the midpoint of guidance and record adjusted EPS of $2.14. For 2025, the company expects significant growth with over 60% YoY increase in renewables EBITDA, driven primarily by previous growth in the US renewables portfolio and plans to bring online another 3.2 gigawatts of renewable capacity. The company has initiated 2025 guidance, including adjusted EBITDA of $2.65 billion to $2.85 billion, parent free cash flow of $1.15 billion to $1.25 billion, and adjusted EPS of $2.10 to $2.26.
To strengthen its financial position, The AES Corporation (NYSE:AES) is implementing several strategic actions, including reducing current investment in renewables by $1.3 billion through 2027, focusing on highest risk-adjusted return projects, and implementing organizational efficiency measures that will yield approximately $150 million in cost savings in 2025, ramping up to over $300 million in 2026. The company has eliminated the need for issuing new equity during the forecast period while maintaining its dividend and remains committed to maintaining investment-grade credit ratings. Additionally, the company has significantly derisked its portfolio through the sale of 5.2 gigawatts in Brazil, eliminating substantial hydrology, currency, spot price, and floating interest rate risk exposures. We believe the company’s transformation positions it well to succeed in the following years, which makes it one of the best utility stocks to consider in 2025.
2. Constellation Energy Corporation (NASDAQ:CEG)
Average estimated analysts’ upside: 42.52%
Number of Hedge Fund Holders: 85
Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the US, operating a diversified generation fleet that includes nuclear, hydroelectric, wind, and solar facilities, with a total capacity of approximately 32,400 megawatts. The company provides electricity, natural gas, and energy-related products and sustainable solutions to residential, commercial, industrial, and public sector clients. CEG ranked sixth on our recent list of 10 AI Stocks on the Move.
Constellation Energy Corporation (NASDAQ:CEG) delivered exceptional financial results in 2024, with GAAP net income of $11.89 per share and Adjusted Operating Earnings of $8.67 per share, surpassing the top end of its twice-revised guidance range of $8.00-$8.40 per share. The company maintained strong operational performance with a nuclear operating capacity factor of 94.6% for 2024, demonstrating reliable clean energy generation. The financial strength was further validated by Moody’s upgrade of its credit rating, reflecting improved debt coverage metrics and strong financial performance. With a whopping 42.52% estimated average upside, CEG is included in the second place on our list of the best utility stocks to buy according to analysts.
Constellation Energy Corporation (NASDAQ:CEG) has made significant strategic moves, including entering a definitive agreement to acquire Calpine Corporation, which will combine the largest producer of clean, emissions-free energy with reliable natural gas assets, creating the nation’s leading competitive retail supplier. CEG demonstrated strong shareholder commitment by completing $1 billion in share repurchases in 2024, bringing the cumulative repurchase to $2 billion since 2023, while also increasing the annual per-share dividend by 25% with plans for an additional 10% growth in 2025.
1. Vistra Corp. (NYSE:VST)
Average estimated analysts’ upside: 44.86%
Number of Hedge Fund Holders: 120
Vistra Corp. (NYSE:VST) is a Fortune 500 retail electricity and power generation company, operating approximately 41,000 megawatts of generation capacity across the US, making it the largest competitive power generator in the country. VST’s diversified energy portfolio includes natural gas, nuclear, coal, solar, and battery energy storage facilities and serves around 5 million residential, commercial, and industrial customers.
Vistra Corp. (NYSE:VST) delivered strong financial performance in 2024, achieving full year adjusted EBITDA of $5.656 billion, which exceeded the top end of their original guidance range even before considering the $545 million benefit from the nuclear production tax credit recognized in Q4 2024. The company demonstrated operational excellence with its gas and coal fleet achieving approximately 95% commercial availability, while its nuclear fleet delivered a solid 92% capacity factor. Looking forward, management reaffirmed their 2025 guidance ranges for adjusted EBITDA of $5.5 billion to $6.1 billion and adjusted free cash flow before growth of $3 billion to $3.6 billion, while maintaining their outlook for a 2026 adjusted EBITDA midpoint opportunity of over $6 billion.
Vistra Corp. (NYSE:VST) is actively positioning itself to meet growing market demand through various initiatives, including completing approximately 500 megawatts of gas asset augmentations in Texas, with the remainder to be finished before summer. VST is also progressing on its zero-carbon growth strategy, completing two solar and energy storage facilities in Illinois, while beginning construction at sites in Oak Hill, Texas, and Pulaski, Illinois, which will add over 600 megawatts of renewable capacity to its portfolio. The company’s outlook is further reinforced by a strong financial position with net debt below 3x adjusted EBITDA at the end of 2024, with expectations of further deleveraging through 2025 and 2026.
Overall, VST ranks first on our list of the 13 best utility stocks to buy according to analysts. While we acknowledge the potential of VST to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than VST but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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