In this article, we will list the 5 Best Power Generation Stocks To Buy For Data Center Demand. Please visit 15 Best Power Generation Stocks To Buy For Data Center Demand if you would like to see the extended list and the methodology behind it.
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5. Pinnacle West Capital Corporation (NYSE:PNW)
On May 5, 2026, Barclays analyst Nicholas Campanella raised the firm’s price target on Pinnacle West Capital Corporation (NYSE:PNW) to $102 from $101 and maintained an Equal Weight rating following the company’s Q1 report. The analyst said Pinnacle West delivered a solid start to 2026, though the first quarter represents a relatively small portion of the company’s full-year earnings contribution.
On May 4, 2026, Pinnacle West Capital Corporation (NYSE:PNW) reported Q1 EPS of 27c, ahead of the 1c consensus estimate, while revenue came in at $1.15B compared to expectations of $1.08B. The company said results benefited from higher transmission revenues, lower operations and maintenance expenses, weather impacts, and customer growth and usage trends, partially offset by higher interest expense, income taxes, and depreciation costs. CEO Ted Geisler said Arizona experienced its warmest winter on record, with elevated temperatures continuing into spring, resulting in stronger-than-normal energy usage from retail customers during the quarter. Pinnacle West maintained its FY26 EPS outlook of $4.55-$4.75, compared to consensus estimates of $4.70.
Ahead of earnings, Morgan Stanley analyst David Arcaro lowered the firm’s price target on Pinnacle West Capital Corporation (NYSE:PNW) to $98 from $99 and maintained an Equal Weight rating as part of a broader update on North American regulated and diversified utilities and IPPs.
Pinnacle West Capital Corporation (NYSE:PNW), through its subsidiary, provides retail and wholesale electric services in Arizona.
4. Portland General Electric Company (NYSE:POR)
On May 1, 2026, Portland General Electric Company (NYSE:POR) reported Q1 EPS of 58c, versus the 77c consensus estimate, while revenue came in at $879M compared to expectations of $954.96M. CEO Maria Pope said the company remains focused on disciplined execution, adding that strong operational performance and cost controls helped offset the impact of an unusually mild winter.
Portland General Electric Company (NYSE:POR) maintained its FY26 EPS outlook of $3.33-$3.53 compared to consensus estimates of $3.41. The company also maintained its FY26 capital expenditure plan of $1.66B and expects its effective tax rate for the year to remain between 15% and 20%. Weather-adjusted energy deliveries are expected to increase between 1.5% and 2.5%.
Ahead of the earnings report, Wells Fargo analyst Shahriar Pourreza raised the firm’s price target on Portland General Electric Company (NYSE:POR) to $51 from $49 and maintained an Equal Weight rating. The firm updated its Q1 estimates across regulated utility coverage following discussions with management teams.
Portland General Electric Company (NYSE:POR) is an integrated electric utility engaged in the generation, wholesale purchase, transmission, distribution, and retail sale of electricity in Oregon.
3. TransAlta Corporation (NYSE:TAC)
On May 6, 2026, TransAlta Corporation (NYSE:TAC) reported Q1 adjusted EPS of C$0.60 compared to C$0.10 last year. Revenue came in at C$565M versus C$758M a year ago, while free cash flow totaled C$102M compared to C$139M last year. By segment, Q1 hydro adjusted EBITDA declined to C$35M from C$47M last year, wind and solar adjusted EBITDA fell to C$95M from C$102M, gas adjusted EBITDA decreased to C$93M from C$104M, and energy transition adjusted EBITDA dropped to C$1M from C$37M. CEO Joel Hunter said the company’s hedging strategy and contracted portfolio helped support performance despite a difficult pricing environment.
TransAlta Corporation (NYSE:TAC) maintained its FY26 adjusted EBITDA outlook of C$950M-C$1.05B. The company said its long-term opportunity set remains significant despite near-term challenges in Alberta, with Hunter adding that the company remains confident in its 2026 outlook.
Last month, TransAlta announced the appointment of Mike Politeski as Executive Vice President, Finance and CFO, effective May 1, 2026, and Grant Arnold as Executive Vice President, Growth and Chief Commercial Officer, effective May 6, 2026. The leadership changes follow Joel Hunter’s transition from CFO to President and CEO on April 30, 2026, succeeding retiring CEO John Kousinioris.
TransAlta Corporation (NYSE:TAC) develops, produces, and sells electric energy.
2. Duke Energy Corporation (NYSE:DUK)
On May 6, 2026, Mizuho raised its price target on Duke Energy Corporation (NYSE:DUK) to $139 from $130 previously and maintained an Outperform rating on the shares.
On May 5, 2026, Duke Energy Corporation (NYSE:DUK) reported Q1 adjusted EPS of $1.93, ahead of the $1.80 consensus estimate, while revenue came in at $9.18B compared to expectations of $8.49B. CEO Harry Sideris said the company continues investing in generation capacity and grid infrastructure to support economic growth across its service territories while working to keep customer rates manageable. Duke maintained its FY26 adjusted EPS outlook of $6.55-$6.80, compared to consensus estimates of $6.70.
Last month, the U.S. Nuclear Regulatory Commission renewed the operating license for Duke Energy’s Robinson Nuclear Plant for an additional 20 years, extending the facility’s operating life through 2050. Located in Hartsville, South Carolina, the plant generates enough electricity to power about 570,000 homes.
Also in April, Morgan Stanley lowered its price target on Duke Energy Corporation (NYSE:DUK) to $141 from $142 while maintaining an Overweight rating as part of a broader update on North American regulated and diversified utilities and IPPs.
Duke Energy Corporation (NYSE:DUK), through its subsidiaries, operates electric and gas utility businesses in the United States.
1. Vistra Corp. (NYSE:VST)
On May 4, 2026, TD Cowen analyst Shelby Tucker lowered the firm’s price target on Vistra Corp. (NYSE:VST) to $230 from $253 previously and maintained a Buy rating on the shares. The firm expects Vistra to report a quiet quarter, with earnings modestly higher year over year.
On April 27, 2026, Raymond James lowered its price target on Vistra Corp. (NYSE:VST) to $208 from $240 and kept a Strong Buy rating. The firm said Q1 results across the independent power producer group are expected to be mixed, with limited broader read-through. Raymond James expects Vistra’s near-term results to reflect softer ERCOT weather, lower load, and weaker power prices, though impacts may vary depending on retail and supply exposure.
Morgan Stanley analyst David Arcaro also lowered the price target on Vistra Corp. (NYSE:VST) to $208 from $214 while maintaining an Overweight rating on the shares. The firm said the target change was part of a broader update to its North American regulated and diversified utilities and IPP coverage following utility outperformance versus the S&P in March.
Vistra Corp. (NYSE:VST) operates an integrated retail electricity and power generation business in the United States.
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