5 Best Utility Stocks to Buy Now According to Hedge Funds

4. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 74

With a market cap of over $184 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 25, Erste Group downgraded NextEra Energy, Inc. (NYSE:NEE) from ‘Buy’ to ‘Hold’, without assigning the stock a price target.

The analyst firm cited the sharp YoY increase in NextEra’s long-term liabilities for the downgrade. It is expected that the Federal Reserve’s next monetary policy move will be an interest rate hike, which will further raise financing costs in the medium term. According to Erste Group, this reduces the possibility of positive earnings surprises from the utility.

On the other hand, earlier on Jun 17, Bernstein launched coverage of NextEra Energy, Inc. (NYSE:NEE) with an ‘Outperform’ rating and a price objective of $107, indicating an upside of over 21% from the current levels (read more details here).

NextEra Energy, Inc. (NYSE:NEE) is targeting adjusted earnings in the range of $3.92 to $4.02 per share for FY 2026, indicating a YoY growth of 7% at the midpoint. The company expects to grow its adjusted EPS at a CAGR of 8% plus through 2032, and is targeting the same from 2032 through 2035, all off the 2025 base of $3.71.