In this article, we will list the 5 Best Regulated Electric Stocks to Buy According to Hedge Funds. Please visit 10 Best Regulated Electric Stocks to Buy According to Hedge Funds if you’d like to see an extended list and how we came up with the list of best Regulated Electric stocks.
5. The Southern Company (NYSE:SO)
The Southern Company (NYSE:SO) is one of the 10 best regulated electric stocks to buy according to hedge funds.
On March 5, Evercore ISI upgraded The Southern Company (NYSE:SO) stock to an Outperform rating from In Line, and increased its price target to $111 from $103.
The firm stated that it still regarded The Southern Company (NYSE:SO) as a core foundational utility holding business, which has led to it becoming incrementally bullish over the last two months. Evercore believes that the stock is due for another breakout to all-time highs, driven by potential additions to the company’s capital plan. These developments will be driven by a favorable regulatory environment and strategic economic development initiatives.
On March 4, KeyBanc upgraded The Southern Company (NYSE:SO) from an Underweight rating to Sector Weight. KeyBanc’s upgrade reflects a recognition of Southern Company’s valuation compression relative to its utility peers. The firm also noted that recent revisions to earnings growth guidance, combined with constructive operational news flow, suggest a stabilizing fundamental outlook.
The Southern Company (NYSE:SO) operates as a comprehensive energy holding firm, managing a massive, vertically integrated infrastructure. They bridge the gap between generation and delivery by providing retail and wholesale electric services, alongside natural gas distribution and resilient energy solutions, ensuring reliable power across residential, industrial, and governmental sectors nationwide.
4. Xcel Energy Inc. (NASDAQ:XEL)
Xcel Energy Inc. (NASDAQ:XEL) is one of the 10 best regulated electric stocks to buy according to hedge funds.
On February 26, Xcel Energy Inc. (NASDAQ:XEL) announced that its board has approved an increase in quarterly dividend on the company’s common stock to 59.25c per share from 57c previously, bringing the annual payout to $2.37 per share. The dividend will be payable on April 20 to shareholders of record as of March 13. Commenting on the announcement, Chairman, President, and CEO Bob Frenzel stated:
“Xcel Energy Inc. (NASDAQ:XEL) is rewarding its shareholders with higher dividends for the twenty third consecutive year. It was made possible by our more than 11,000 employees striving daily to make energy work better for our customers, and reflects confidence in our long-term growth strategy and financial strength. We are committed to providing predictable and sustainable dividend growth, continuing to target annual dividend increases of 4-6 percent and a payout ratio of 45-55 percent.”
Back on February 24, Xcel Energy Inc. (NASDAQ:XEL) announced its plan to power a new data centre for Google (GOOGL) located in Pine Island, Minnesota. According to the company, the project and the Electric Service Agreement associated with it are anticipated to produce a significant positive impact for the state, coupled with a significant expansion of clean energy developments to support Minnesota’s energy aspirations. According to the company, the growth initiative includes provisions to ensure the benefits of the program for its existing customers.
Xcel Energy Inc. (NASDAQ:XEL) operates as a major utility, managing the generation, transmission, and distribution of electricity and natural gas. Their business model centers on regulated delivery services while driving a strategic shift toward a carbon-free energy portfolio. They provide essential power solutions to millions of residential, commercial, and industrial customers.
3. American Electric Power Company Inc. (NASDAQ:AEP)
American Electric Power Company Inc. (NASDAQ:AEP) is one of the 10 best regulated electric stocks to buy according to hedge funds.
On March 12, J.P. Morgan increased the firm’s price target on American Electric Power Company Inc. (NASDAQ:AEP) to $139 from $125. The firm also maintained its Neutral rating on the stock. This upward revision follows the firm’s broader update to its valuation models across the North American utilities sector.
Earlier on February 27, UBS upgraded American Electric Power Company Inc. (NASDAQ:AEP) from a Sell to Neutral rating. The firm also increased its price target on the shares from $115 to $132.
UBS said the company appears well-positioned for stronger earnings expansion, now expecting annual growth of about 8%–9% through 2030 compared with last year’s midpoint outlook of around 7%. The firm also pointed out that American Electric Power Company Inc. (NASDAQ:AEP) holds the largest backlog of major electricity load contracts at roughly 56GW and operates the industry’s largest transmission network. According to the firm, these factors provide solid support for the company’s longer-term growth trajectory.
American Electric Power Company Inc. (NASDAQ:AEP) stands as a foundational pillar of the American energy landscape, operating as a massive, vertically integrated utility holding company. Their business centers on managing the complete lifecycle of electricity—from generation to the final delivery to retail and wholesale customers across the country.
2. NextEra Energy Inc. (NYSE:NEE)
NextEra Energy Inc. (NYSE:NEE) is one of the 10 best regulated electric stocks to buy according to hedge funds.
On March 3, NextEra Energy Inc. (NYSE:NEE) announced that it plans to build new power generation capacity between 15 GW and 30 GW in the U.S. to serve data centres by 2035, based on the company’s presentation. The company stated that 30 GW of capacity could be enough to power 22M homes.
The capacity will be developed mainly through gas-based sources, as the company cited that it had a pipeline of over 20 GW of gas-based generation capacity. The company also plans investor meetings in March to discuss its operations and financial performance.
Back on February 20, Morgan Stanley increased the firm’s price target on NextEra Energy Inc. (NYSE:NEE) to $106 from $104. The firm maintained an Overweight rating on the shares that currently yield an upside potential of more than 14%.
Morgan Stanley reflected on fourth-quarter earnings, suggesting that most discussions would revolve around data center power-demand pipelines, though affordability pressures and political considerations could lead to a more balanced tone.
NextEra Energy Inc. (NYSE:NEE) operates as a dual-engine energy holding company, balancing stable, regulated electric utility services with large-scale, competitive clean energy generation. By leveraging a diverse portfolio of wind, solar, nuclear, and natural gas assets, the company delivers reliable power solutions to millions of retail and wholesale energy customers.
1. PG&E Corp. (NYSE:PCG)
PG&E Corp. (NYSE:PCG) is one of the 10 best regulated electric stocks to buy according to hedge funds.
On March 9, UBS upgraded PG&E Corp. (NYSE:PCG) from a Neutral rating to Buy. The firm also raised the price target from $20 to $23. The thesis hinges on Phase 2 legislation expected before the July 2 recess, which could meaningfully reduce the firm’s utility liability exposure.
The firm also anticipates potential upside in the stock price based on California wildfire policy improvements and better affordability. With the stock currently trading at a 43% price-to-earnings discount to peers, UBS expects continued risk reduction to narrow this valuation gap.
On February 24, Sunrun (RUN) reported that it had successfully completed a dispatch season for its distributed power plant partnership with PG&E Corp. (NYSE:PCG). The program uses customer-owned battery systems to supply electricity to the grid during periods of high demand. Commenting on the milestone, Sunrun CEO Mary Powell, stated:
“Sunrun’s groundbreaking program with PG&E Corp. (NYSE:PCG) shows that distributed power plants can help communities avoid the high cost of adding more poles and wires to accommodate load growth, we saw time and time again that our customers’ batteries delivered location-specific load relief with high precision and consistent performance.”
PG&E Corp. (NYSE:PCG) serves as a massive, dual-utility holding company, managing the generation, transmission, and distribution of both electricity and natural gas. Their business model is defined by operating a highly regulated infrastructure network that provides essential energy services to millions of residential, commercial, industrial, and agricultural customers.
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