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. 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. 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. 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. 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.’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 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 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 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 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 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. 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.’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.”
5. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 74
With a market cap of almost $181 billion as of the writing of this article, NextEra Energy, Inc. (NYSE:NEE) is the most valuable utility company in the world. The company boasts a diverse mix of energy sources, including natural gas, nuclear, renewable energy, and battery storage.
On June 17, Bernstein launched coverage of NextEra Energy, Inc. with an ‘Outperform’ rating and a price target of $107, implying an upside of over 23% from the current levels.
Bernstein believes that NextEra Energy, Inc.’s relative underperformance, despite its “solid fundamentals”, is largely due to concerns surrounding the XPLR Infrastructure situation and the utility’s recent announcement to acquire Dominion Energy. However, the firm argued that much of this negative sentiment has already been priced into the stock’s valuation, leaving meaningful upside potential for investors.
Nextera announced last month that it plans to acquire Dominion Energy in a $66.8 billion deal that will form one of the largest regulated electric utilities in the world. The combined company will be at the top in the US in total generation, generation built, annual CapEx, rate base, and market capitalization.
4. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 79
Constellation Energy Corporation (NASDAQ:CEG) is the largest provider of clean, low-carbon energy in the United States. The company also operates the largest fleet of nuclear facilities in the country.
On June 17, Bernstein initiated coverage of Constellation Energy Corporation with an ‘Outperform’ rating and a price target of $296, indicating an upside of 8% from the current levels.
Bernstein launched coverage of the power, clean energy, and LNG sectors with a positive outlook, stating that the United States is going through a “one-in-a-generation” transformation in how energy is produced, transmitted, and consumed. According to the analyst firm, natural gas is helping fund the transition, utilities are enabling the buildout of infrastructure, and clean energy is the “ultimate destination”.
Bernstein praised Constellation Energy for its “very effective and stable” regulated business, while also highlighting its growing renewables portfolio. The firm believes that much of the negative market sentiment has already been reflected in the stock’s valuation, creating a potential upside for investors.
Constellation Energy Corporation also operates the largest fleet of nuclear facilities in the United States, and was recently included in our list of the 15 Best Nuclear Power Stocks to Buy According to Wall Street Analysts.
3. Bloom Energy Corporation (NYSE:BE)
Number of Billionaire Holders: 91
Bloom Energy Corporation (NYSE:BE) designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation in the United States and internationally.
On June 17, Bernstein analyst Sunaina Ocalan initiated coverage of Bloom Energy Corporation with a ‘Market Perform’ rating and a price target of $276, indicating a downside of 16% from the current levels.
Bernstein expressed confidence in Bloom Energy’s technology, describing its solid fuel technology as “increasingly relevant in a scenario where grid infrastructure can’t keep up with expected load growth”. However, the analyst firm is waiting for a sustainable path for free cash flow that “doesn’t rely on one-time contract timing”, as well as better visibility into the company’s expansion of its production capacity.
Bloom Energy Corporation crushed Wall Street estimates in its first quarter report and raised its outlook for FY 2026. The company is now targeting an adjusted EPS in the range of $1.85 to $2.25, up from $1.33 to $1.48 previously. Moreover, it boosted its revenue target range for the year from $3.1 billion – $3.3 billion to $3.4 billion – $3.8 billion, implying a robust growth of 80% at the midpoint compared to last year.
2. Vistra Corp. (NYSE:VST)
Number of Hedge Fund Holders: 106
Vistra Corp. (NYSE:VST) is one of the largest competitive power generators in the United States. The company operates a power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities in the country.
On June 17, Bernstein analyst Sunaina Ocalan initiated coverage of Vistra Corp. with an ‘Outperform’ rating and $187 price target.
Bernstein began coverage of the power, clean energy, and LNG sectors with a favorable outlook, noting that the United States is in the midst of a “once-in-a-generation” shift in how energy is generated, moved, and consumed. According to the analyst, natural gas will support the transition, while utilities will help build out the necessary infrastructure, and clean energy remains the end goal.
Bernstein believes that Vistra’s portfolio of generation assets positions it to benefit from the soaring power demand, creating a “double barreled earnings event”.
Similarly, earlier on June 15, Seaport Research also turned more bullish on Vistra Corp. when it lifted its price target on the stock from $227 to $230, while reiterating a ‘Buy’ rating on the shares. The target boost reflects an upside of over 40% from the current price level.
1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 118
Topping our list of the Best Electrical Infrastructure Stocks is GE Vernova Inc. (NYSE:GEV). The company engages in the provision of various products and services that generate, transfer, orchestrate, convert, and store electricity in the United States, Europe, Asia, the Middle East, and Africa.
On June 17, Bernstein analyst Sunaina Ocalan initiated coverage of GE Vernova Inc. with an ‘Outperform’ rating and a price target of $1,206, implying an upside of over 8% from the current levels.
Bernstein noted that the rising demand driven by energy security, decarbonization efforts, and global demand concerns has positioned GE Vernova to become “an end-to-end power and electrification equipment and services provider”.
In a notable development, GE Vernova Inc. has emerged as the latest American company to enter Venezuela after the ouster of Nicolás Maduro. On June 16, the company signed an MoU with state-owned utility Corpoelec to repair, modernize, and stabilize the country’s struggling national power grid. The agreement aims to restore 1 GW of generating capacity over the next two years and more than 5 GW within 4 to 5 years.
GE Vernova Inc. was also recently included in our list of the 14 Best S&P 500 Stocks to Buy Now According to Analysts.
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