In this article, we will discuss: 15 Best Electric Utility Stocks to Invest In Now.
On October 29, 2025, Deloitte’s 2026 Power and Utilities Industry Outlook reported that U.S. electricity demand increased in 2025 due to artificial intelligence training and electrification. Deloitte predicts that peak demand will climb by 26% by 2035. Data center demand could hit 176 gigawatts by 2035, five times higher than in 2024. Industrial electrification could produce 25 GW by 2030. Renewable energy made up 93% of extra capacity until July 2025, with solar and storage accounting for 83%. Manufacturers face delays due to two terawatts of interconnection queues. The United States saw 15 billion-dollar disasters in the first half of 2025. Deloitte anticipates that retail power prices will climb by around 4.5% in 2025.
The U.S. Department of Energy anticipates 104 GW of coal and gas retirements by 2030, offset by 209 GW of new capacity, with only 10% firm capacity. Utilities plan to add 19 gigawatts of additional gas by 2028. The US electric power sector requires $1.4 trillion in investments by 2030.
With that said, here are the 15 Best Electric Utility Stocks to Invest In Now.
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
Our Methodology
We used screeners to identify Electric Utility stocks, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15 Best Electric Utility Stocks to Invest In Now
15. The Southern Company (NYSE:SO)
The Southern Company (NYSE:SO) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley analyst David Arcaro raised The Southern Company (NYSE:SO)’s price goal to $91 from $85 while maintaining an Underweight rating. Morgan Stanley updated its price forecasts for the North American Regulated and Diversified Utilities and IPPs. The firm found that utilities lagged the S&P in January. Morgan Stanley’s Q4 earnings preview forecasts balanced discussions regarding data center pipelines in light of affordability and political concerns.
On February 19, 2026, Reuters reported that The Southern Company (NYSE:SO) increased its five-year capital plan by 7% to $81 billion for 2026-2030 from $76 billion, with roughly half going toward power generation. The company signed 10 gigawatts of large-load customers and received interest for about 75 gigawatts seeking grid connection. The corporation plans to redirect around 1,000 megawatts of gas-fired capacity by 2030. It is in the final stages of discussions to add 700 megawatts from its existing fleet. The firm forecasts 2026 adjusted EPS of $4.50 to $4.60, with the midpoint lower than the $4.56 estimate.
The Southern Company (NYSE:SO) is a holding company that generates and sells electricity. It operates in three segments: Traditional Electric Operating Companies, Southern Power, and Southern Company Gas.
14. Dominion Energy, Inc. (NYSE:D)
Dominion Energy, Inc. (NYSE:D) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley increased Dominion Energy, Inc. (NYSE:D)’s price objective to $67 from $63 while maintaining an Equal Weight rating. Morgan Stanley upgraded its price estimates for North American Regulated and Diversified Utilities and IPPs. The firm noted that utilities lagged the S&P in January. Morgan Stanley’s Q4 earnings preview anticipates balanced discussions about data center pipelines, considering affordability and political concerns.
On February 23, 2026, Reuters reported that Dominion Energy, Inc. (NYSE:D) expects fiscal 2026 operating earnings of $3.45 to $3.69 per share, with the midpoint falling below LSEG’s $3.60 average estimate. The corporation has also increased its five-year capital plan to $64.7 billion for 2026-2030, from $50.1 billion through 2029. As of December, the corporation contracted roughly 48.5 gigawatts of data center capacity, an increase of 1.4 GW from September. The firm announced fourth-quarter adjusted earnings of $0.68 per share, exceeding expectations of $0.67, while operating expenses rose by over 11% year-on-year to $3.33 billion.
Dominion Energy, Inc. (NYSE:D) is involved in the generation and distribution of energy. It operates in four business segments: Dominion Energy Virginia, Dominion Energy South Carolina, Contracted Energy, and Corporate and Other.
13. FirstEnergy Corp. (NYSE:FE)
FirstEnergy Corp. (NYSE:FE) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley raised FirstEnergy Corp. (NYSE:FE) price target to $53 from $50 while keeping an Overweight rating. Morgan Stanley raised its price projections for North American Regulated and Diversified Utilities and IPPs. The firm observed that utilities fell behind the S&P in January. Morgan Stanley’s Q4 earnings preview predicts balanced debates about data center pipelines, taking into account affordability and political considerations.
On February 18, 2026, Reuters reported that FirstEnergy Corp. (NYSE:FE) disclosed a $36 billion capital expenditure plan for 2026-2030, including more than $19 billion for transmission. The announcement came after a 4.3% increase in full-year earnings due to rising energy rates. The corporation benefited from newly implemented Pennsylvania rates and increased distribution sales, which offset higher operating costs. The firm reported a 2025 profit of $1.02 billion, or $1.77 per share, up from $978 million, or $1.70 per share, the year before. Distribution division core earnings grew by $0.23 per share year on year. The company reiterated its 2026 EPS projection of $2.62 to $2.82 and announced $6 billion in 2026 investments.
FirstEnergy Corp. (NYSE:FE) generates, transmits, and distributes electricity, as well as provides energy management and other energy-related services. It operates in three business segments: regulated distribution, regulated transmission, and corporate or other.
12. PPL Corporation (NYSE:PPL)
PPL Corporation (NYSE:PPL) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley analyst David Arcaro boosted PPL Corporation (NYSE:PPL)’s price objective to $42 from $40, maintaining an Overweight rating. The firm increased its price predictions for North American Regulated and Diversified Utilities and IPPs. Morgan Stanley noted that utilities underperformed the S&P in January. Morgan Stanley’s Q4 earnings preview anticipates balanced discussions about data center pipelines, taking into account affordability and political factors.
On February 20, 2026, PPL Corporation (NYSE:PPL) increased its quarterly common dividend by 4.6% to $0.285 per share from $0.2725. The company’s modified business plan now targets 4%-6% annual dividend growth. The dividend will be paid on April 1 to shareholders of record on March 10.
On February 20, 2026, PPL Corporation (NYSE:PPL) boosted its capital investment plan to $23 billion for 2026-2029 from $20 billion for 2025-2028. The company forecasts an average annual rate-based growth of 10.3% through 2029. The corporation aims to spend around $5.1 billion on infrastructure in 2026, excluding partnership contributions.
PPL Corporation (NYSE:PPL) generates, transmits, and distributes electricity. It operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated.
11. Ameren Corporation (NYSE:AEE)
Ameren Corporation (NYSE:AEE) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley elevated Ameren Corporation (NYSE:AEE)’s price objective to $116 from $108 while retaining an Equal Weight rating. The firm raised its price projections for North American Regulated and Diversified Utilities and IPPs. Morgan Stanley said that utilities underperformed the S&P in January. Morgan Stanley’s Q4 earnings forecast anticipates balanced discussions about data center pipelines, taking into consideration affordability and political factors.
On February 20, 2026, UBS analyst William Appicelli increased Ameren Corporation (NYSE:AEE)’s price objective from $125 to $127 while maintaining a Buy rating.
On February 13, 2026, Wells Fargo boosted Ameren Corporation (NYSE:AEE)’s price goal to $113 from $111 and maintained an Overweight rating. Wells Fargo noted a minor fourth-quarter 2025 beat, and management showed a path for EPS to rise beyond 8%. The firm predicted 8.4% EPS growth but warned that this estimate could be cautious.
Ameren Corporation (NYSE:AEE) is a public utility holding company that provides electricity and natural gas services. It functions in the following segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, Ameren Transmission, and Others.
10. Eversource Energy (NYSE:ES)
Eversource Energy (NYSE:ES) is among the Best Utility Stocks.
On February 19, 2026, TD Cowen boosted Eversource Energy (NYSE:ES)’s price objective to $77 from $74, maintaining a Hold rating. TD Cowen said the 2026 EPS estimate fell short of expectations, but management predicted 5%-7% long-term EPS growth beginning in 2027. The outlook is partially supported by storm cost securitization and identifies 2027 as a potential turning point, noting regulatory reform needs in Connecticut and Massachusetts.
On February 13, 2026, Reuters reported that Eversource Energy (NYSE:ES)’s fourth-quarter profit climbed to $421.3 million, or $1.12 per share, from $72.5 million, or $0.20 per share, the previous year. The company achieved $123.6 million in natural gas earnings as opposed to $103.4 million last year and forecasts 2026 EPS of $4.80 to $4.95, compared to the LSEG consensus of $4.97. The firm lifted its five-year capital plan to $26.5 billion from $24.2 billion and anticipates $800 million to $1.1 billion in equity issuance between 2026 and 2030.
Eversource Energy (NYSE:ES) generates, transmits, and distributes natural gas and electricity. It operates in five segments: electric distribution, electric transmission, natural gas distribution, water distribution, and other.
9. Sempra (NYSE:SRE)
Sempra (NYSE:SRE) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley raised Sempra (NYSE:SRE)’s price target to $101 from $97 while keeping an Overweight rating. The firm boosted its price estimates for North American Regulated and Diversified Utilities and IPPs. Morgan Stanley said that utilities underperformed the S&P in January. Morgan Stanley’s Q4 earnings outlook predicts balanced discussions about data center pipelines, considering affordability and political factors.
On February 6, 2026, J.P. Morgan analyst Aidan Kelly initiated coverage of Sempra (NYSE:SRE) with an Overweight rating. The analyst elevated his price target to $98 from $85, noting significant leverage to record Texas infrastructure demand after a period of restraint.
Sempra (NYSE:SRE) is an energy-service holding company that develops and operates energy infrastructure and provides electric and gas services. It operates in four segments: Sempra California, Sempra Texas Utilities, Sempra Infrastructure, and All Other.
8. Exelon Corporation (NASDAQ:EXC)
Exelon Corporation (NASDAQ:EXC) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley boosted Exelon Corporation (NASDAQ:EXC)’s price objective to $54 from $51, maintaining an Equal Weight rating. The firm increased its price predictions for North American Regulated and Diversified Utilities and IPPs. Morgan Stanley noted that utilities underperformed the S&P in January. Morgan Stanley’s Q4 earnings preview anticipates balanced discussions about data center pipelines, taking into account affordability and political factors.
On February 20, 2026, UBS boosted its price objective for Exelon Corporation (NASDAQ:EXC) to $51 from $48 while retaining a Neutral rating.
Exelon Corporation (NASDAQ:EXC) is a utility services holding company that operates in the energy transmission and distribution markets. It works in the following segments: Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Potomac Electric Power Company, Delmarva Power and Light Company, and Atlantic City Electric Company.
7. Xcel Energy Inc. (NASDAQ:XEL)
Xcel Energy Inc. (NASDAQ:XEL) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley raised Xcel Energy Inc. (NASDAQ:XEL)’s price target from $84 to $91 while keeping an Equal Weight rating. The firm raised its price projections for North American Regulated and Diversified Utilities and IPPs. Morgan Stanley observed that utilities fell behind the S&P in January. Morgan Stanley’s Q4 earnings preview predicts balanced debates about data center pipelines, taking into account affordability and political considerations.
On February 13, 2026, UBS analyst William Appicelli elevated Xcel Energy Inc. (NASDAQ:XEL) to Buy from Neutral and increased his price target to $89 from $81. The firm noted a positive risk-reward ratio at current prices, with the stock trading at a 4% discount to the utility group. UBS said the market has not priced in the shares, even with a fully controlled 9% earnings growth rate and rising data center load patterns.
On February 6, 2026, BMO Capital hiked its price objective for Xcel Energy Inc. (NASDAQ:XEL) from $87 to $90 and maintained an Outperform rating following fourth-quarter results. BMO Capital cited clearer upside capital factors and a doubling of the data center backlog, backing its previous sales growth prediction.
Xcel Energy Inc. (NASDAQ:XEL) is an electric and natural gas distribution corporation. It works in three segments: Regulated Electric, Regulated Natural Gas Utility, and All Others.
6. Entergy Corporation (NYSE:ETR)
Entergy Corporation (NYSE:ETR) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley analyst David Arcaro increased Entergy Corporation (NYSE:ETR)’s price objective to $98 from $91 while maintaining an Equal Weight rating. The firm upgraded its price estimates for North American Regulated and Diversified Utilities and IPPs. Morgan Stanley noted that utilities lagged the S&P in January. Morgan Stanley’s Q4 earnings preview anticipates balanced discussions about data center pipelines, considering affordability and political concerns.
On February 13, 2026, BofA lifted its price objective for Entergy Corporation (NYSE:ETR) to $103 from $97 while keeping a Neutral rating. BofA raised its FY26-29 EPS projections to align with the company’s guidance ranges and stated EPS growth forecasts.
On February 13, 2026, BMO Capital boosted Entergy Corporation (NYSE:ETR)’s price goal to $112 from $104 and reaffirmed an Outperform rating. BMO Capital pointed out strong execution this year and an update of a higher than 8% EPS CAGR through 2029 based on 2025, with no revisions to the 2027-2029 outlook range.
Entergy Corporation (NYSE:ETR) is a holding company that provides electricity and natural gas services. It operates in the Utility, Parent, and Other areas. The Utility division generates, transmits, distributes, and sells electricity in Arkansas, Mississippi, Texas, and Louisiana.
5. American Electric Power Company, Inc. (NASDAQ:AEP)
American Electric Power Company, Inc. (NASDAQ:AEP) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley raised American Electric Power Company, Inc. (NASDAQ:AEP)’s price target to $133 from $125 while maintaining an Overweight rating. Morgan Stanley updated its price forecasts for the North American Regulated and Diversified Utilities and IPPs. The firm found that utilities lagged the S&P in January. Morgan Stanley’s Q4 earnings preview forecasts balanced discussions regarding data center pipelines in light of affordability and political concerns.
On the same day, TD Cowen analyst Shelby Tucker elevated American Electric Power Company, Inc. (NASDAQ:AEP)’s price objective to $141 from $137 while maintaining a Buy rating. TD Cowen noted a strong pipeline of capital opportunities across the company’s operational locations, as well as sustained modest gains in earned returns on equity.
On February 20, 2026, Jefferies boosted its price objective for American Electric Power Company, Inc. (NASDAQ:AEP) to $150 from $137 while retaining a Buy rating. Jefferies said the investment thesis has improved significantly since October, as contracted demand has risen to 56 gigawatts by 2030 from 28 gigawatts, with 36 gigawatts focused in ERCOT.
American Electric Power Company, Inc. (NASDAQ:AEP) produces, transmits, and distributes electricity. It works in four segments: vertically integrated utilities, transmission and distribution utilities, AEP Transmission Holdco, and generation and marketing.
4. Duke Energy Corporation (NYSE:DUK)
Duke Energy Corporation (NYSE:DUK) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley increased its price objective for Duke Energy Corporation (NYSE:DUK) from $130 to $139 while keeping an Equal Weight rating. Morgan Stanley recently updated its price expectations for the North American Regulated and Diversified Utilities and IPPs it covers. The firm reported that utilities underperformed the S&P in January. In its Q4 earnings preview, Morgan Stanley anticipates balanced debates about data center pipelines in the face of affordability and political concerns.
On February 11, 2026, BMO Capital analyst James Thalacker boosted Duke Energy Corporation (NYSE:DUK)’s price goal to $136 from $132 while keeping an Outperform rating. BMO Capital reported a minor operational earnings beat and management’s reaffirmation of 5%-7% EPS growth through 2030, with targets for the top half of the range beginning in 2028.
On February 20, Duke Energy Corporation (NYSE:DUK) announced that its nuclear fleet established a systemwide reliability record in 2025, producing power 96.9% of the time and delivering about $600 million in federal nuclear production tax credits to customers. The firm runs 11 nuclear units across six locations in the Carolinas, producing electricity for almost 8 million homes and making nuclear its primary regional generation source.
Duke Energy Corporation (NYSE:DUK) distributes natural gas and provides other energy-related services. It operates in three segments: electric utilities and infrastructure, gas utilities and infrastructure, and other.
3. NextEra Energy, Inc. (NYSE:NEE)
NextEra Energy, Inc. (NYSE:NEE) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley boosted NextEra Energy, Inc. (NYSE:NEE)’s price objective to $106 from $104 while maintaining an Overweight rating. Morgan Stanley recently revised its price targets for North American Regulated and Diversified Utilities and IPPs that it covers. The firm found that utilities lagged the S&P in January. Morgan Stanley’s Q4 earnings preview anticipates reasonable discussions regarding data center pipelines in the backdrop of affordability and political concerns.
On January 27, 2026, Reuters reported NextEra Energy, Inc. (NYSE:NEE) is looking into extending its nuclear fleet, adding up to 9 gigawatts to supply data centers, and plans to add 6 gigawatts at current sites while investigating greenfield projects. The corporation reopened its Duane Arnold facility to support Google’s data centers. The firm announced adjusted EPS of 54 cents for the fourth quarter, exceeding expectations of 53 cents. The company reaffirmed its 2026 adjusted EPS outlook of $3.92-$4.02 and projected at least 8% annual growth through 2032.
NextEra Energy, Inc. (NYSE:NEE) provides renewable energy. It operates through two segments: FPL and NEER. The FPL division is responsible for the generation, transmission, distribution, and sale of electric energy in Florida.
2. PG&E Corporation (NYSE:PCG)
PG&E Corporation (NYSE:PCG) is among the Best Utility Stocks.
On February 20, 2026, Morgan Stanley increased its price objective for PG&E Corporation (NYSE:PCG) from $21 to $23 while keeping an Equal Weight rating. Morgan Stanley updated its price goals for North American Regulated and Diversified Utilities and IPPs covered by it. The firm reported that utilities underperformed the S&P in January. In its Q4 earnings preview, Morgan Stanley anticipates balanced debates about data center pipelines in the face of affordability and political concerns.
On February 20, 2026, UBS analyst Gregg Orrill boosted PG&E Corporation (NYSE:PCG)’s price goal to $20 from $18 while retaining a Neutral rating.
On February 18, 2026, Barclays analyst Nicholas Campanella upgraded PG&E Corporation (NYSE:PCG)’s price objective to $23 from $21. Barclays maintained an Overweight rating, citing recent outperformance and the company’s strong fundamentals.
On February 12, 2026, PG&E Corporation (NYSE:PCG) reduced its full-year 2026 non-GAAP core EPS projection to $1.64-$1.66, from $1.62-$1.66. The company noted returns on customer capital expenditure, costs associated with unrecoverable debt expense, and other earnings variables.
PG&E Corporation (NYSE:PCG) works as a holding company that generates, transmits, and distributes electricity and natural gas to customers. It focuses on energy, utility, power, gas, electricity, solar, and sustainability.
1. Constellation Energy Corporation (NASDAQ:CEG)
Constellation Energy Corporation (NASDAQ:CEG) is among the Best Utility Stocks.
On February 9, 2026, Reuters reported Constellation Energy Corporation (NASDAQ:CEG)’s Calpine business had inked a 380-megawatt agreement with CyrusOne to link and serve a new data center near the Freestone Energy Center in Texas. Calpine has signed an exclusive agreement to deliver power, grid connectivity, and site infrastructure for Phase 2, providing an additional 380 MW. The firm stated that the new agreements, together with the 400 MW contracts announced last year for the Thad Hill Energy Center in Texas, boost total contracted electricity for CyrusOne data centers in Texas to more than 1,100 MW. The corporation concluded its $16.4 billion acquisition of Calpine last month.
On January 20, 2026, Wells Fargo analyst Shahriar Pourreza cut Constellation Energy Corporation (NASDAQ:CEG)’s price objective to $460 from $478 while maintaining an Overweight rating. Wells Fargo named the stock its Best IPP Idea, noting asset potential and several DC transactions in flight.
Constellation Energy Corporation (NASDAQ:CEG) generates, supplies, and markets clean electricity, as well as renewable energy products and solutions. The company also provides wholesale energy, retail products, and services.
While we acknowledge the potential of CEG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CEG and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best Performing Stocks in 2025 and 12 Best Food Stocks to Buy in 2026.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
