In this article, we will look at the 10 High-Growth Utility Stocks to Buy According to Analysts.
The artificial intelligence boom has transformed utilities from safe havens to growth stocks. Over the past three years, the utilities sector has rallied by more than 30%, making it the third-best-performing sector in the S&P 500, behind communication and information technology.
The outperformance has come amid expectations that the artificial intelligence revolution will require enormous amounts of energy to power data centers. Consequently, companies that produce and sell energy have emerged as the biggest beneficiaries, alongside companies developing and deploying AI innovations.
“Utilities have a healthy outlook, because obviously demand is rising, they are getting their prices increases from the public utilities commissions,” said Louis Navellier, chief investment officer of Navellier & Associates. “I think utilities are going to be a conservative growth industry. Your best defensive sector now is gold stocks, for sure.”
According to Jay Rhame, chief executive of W.H. Reaves & Company, the growth outlook for utilities is the best it’s ever been. That was evident as utility stocks posted the strongest start to the year since 2019, as investors retreated from riskier assets amid the Iran conflict.
“When volatility really ramps up and there are questions about where the market is going in the short term, it’s natural for investors to rotate into defensive type equities and utilities tend to be a prime recipient of along with healthcare,” said Matt Stucky, chief equities portfolio manager at Northwestern Mutual.
Utility companies should continue to outperform as they are considered defensive investments that enjoy strong demand for electricity, water, and gas regardless of the prevailing economic conditions. In addition, most of the stocks offer attractive yields that appeal to passive investors.
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Our Methodology
To compile a list of High Growth Utility Stocks to Buy According to Analysts, we used Finviz and Yahoo Screener to scan for utility stocks. From the list, we focused on companies with a 5-year average revenue growth rate of at least 5%, positive revenue growth projections for the next financial year, and an upside potential of more than 5% (as of May 7). We also set a minimum market cap of $2 billion to focus on larger, more established companies and detailed the number of hedge funds holding stakes in them in Q4 2025. Finally, we ranked the stocks based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
High-Growth Utility Stocks to Buy According to Analysts
10. CMS Energy Corporation (NYSE:CMS)
Stock Upside Potential: 10.65%
Number of Hedge Fund Holders: 52
CMS Energy Corporation (NYSE:CMS) is one of the high growth utility stocks to buy according to analysts. On April 28, CMS Energy Corporation reiterated strong execution in the first quarter, positioning it for an impressive year. The company is also building momentum across its triple bottom line in support of customers and investors.
The sentiments align with the company delivering impressive first-quarter 2026 results that underscored growth. Adjusted Earnings per share came in at $1.13, an improvement from $1.02 a share delivered the same quarter last year. CMS Energy has also reaffirmed its 2026 adjusted earnings guidance of between $3.83 and $3.90 a share. It also expects its long-term adjusted EPS to grow by between 6% and 8%.
Earlier, the company’s board of directors reiterated its commitment to shareholder value by approving a 57-cent-per-share common dividend. The dividend is to be paid on May 29 to shareholders of record as of May 8.
CMS Energy Corporation is a Michigan-based energy holding company that primarily provides regulated electricity and natural gas to 6.8 million residents through its main subsidiary, Consumers Energy. The company focuses on generating, transmitting, and distributing energy, while investing heavily in renewable energy and, as of 2025, has pivoted to a coal-free generation strategy.
9. Black Hills Corporation (NYSE:BKH)
Stock Upside Potential: 11.73%
Number of Hedge Fund Holders: 37
Black Hills Corporation (NYSE:BKH) is one of the high growth utility stocks to buy according to analysts. On April 15, analysts at BMO Capital reiterated an Outperform rating on Black Hills Corporation and raised the price target to $91 from $84.
The price target hike comes as the research firm expects the company to benefit from Microsoft’s purchase of 3,200 acres of land to build a data center. The proposed data center in Cheyenne, Wyoming, underscores the growing interest of hyperscalers in the state, which is expected to trigger significant transformational growth. Black Hills is to provide the much-needed energy to power the data center, seen as a significant development.
Black Hills Corp. boasts a data center pipeline of more than 3 GW, including 600 MW by 2030, as part of a five-year financial plan driven by Microsoft’s data center expansion efforts. The company is also poised to capitalize on Meta Platform’s new AI data center. The Microsoft data center deal comes on the heels of the company delivering solid first-quarter 2026 results. Adjusted earnings totaled $135.1 million, or $1.79 a share, compared to $134.3 million, or $1.87 a share, delivered in the same quarter last year.
Black Hills Corporation is a diversified energy company that operates as a regulated electric and natural gas utility, serving roughly 1.35 million customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. They generate, transmit, and distribute electricity and natural gas.
8. DTE Energy Company (NYSE:DTE)
Stock Upside Potential: 12.40%
Number of Hedge Fund Holders: 46
DTE Energy Company (NYSE:DTE) is one of the high growth utility stocks to buy according to analysts. On May 5, analysts at Jefferies reiterated a Buy rating on DTE Energy Co but cut the price target to $168 from $170.
The research firm insists the stock is a buy given the data center deals the company has signed, and its rate case stays out proposal, which reduces risk around the stock. The data center deals the company has signed support a compound annual growth rate of 8% or higher, which supports the long-term outlook.
DTE Energy’s pipeline is also poised to receive a significant boost from 2 gigawatts in late-stage negotiations. In addition, the company is staring at long-term expansion opportunities with existing customers. Given the robust pipeline, analysts at Jefferies believe the stock is trading at a 4% discount to the average peer price-to-earnings ratio.
DTE Energy Company is a Detroit-based diversified energy company that generates, transmits, and distributes electricity to 2.3 million customers and sells natural gas to 1.4 million customers in Michigan. As a major utility, it operates power plants, pipelines, and renewable energy projects while investing heavily in decarbonization and infrastructure modernization.
7. Public Service Enterprise Group Incorporated (NYSE:PEG)
Stock Upside Potential: 14.36%
Number of Hedge Fund Holders: 49
Public Service Enterprise Group Incorporated (NYSE:PEG) is one of the high growth utility stocks to buy according to analysts. On April 21, the board of directors at Public Service Enterprise Group Incorporated reiterated its commitment to shareholder value by approving a quarterly dividend of $0.67 per share. The dividend is to be paid on June 30, 2026, to shareholders of record as of June 9, 2026.
The second-quarter dividend is to be paid on the heels of Public Service Enterprise Group delivering solid first-quarter operating and financial results. Net income soared to $741 million, or $1.48 a share, compared with $589 million, or $1.18 a share, in the same quarter last year.
The earnings growth underscores the impact of ongoing investments in energy efficiency, gas system modernization, and transmission. It also reflects the gradual increase in the number of electric and gas customers. However, the earnings could have been much higher had the company not incurred higher operating and maintenance costs, depreciation, and interest-related expenses.
Public Service Enterprise Group Incorporated is a Newark, N.J.-based, regulated energy company that operates primarily as a public utility holding company. It operates New Jersey’s largest electric and gas utility, serving 2.4 million electric and 1.9 million gas customers, and also owns a significant fleet of carbon-free nuclear power plants.
6. Spire Inc. (NYSE:SR)
Stock Upside Potential: 14.41%
Number of Hedge Fund Holders: 19
Spire Inc. (NYSE:SR) is one of the high growth utility stocks to buy according to analysts. On April 30, Spire Inc. completed the divestment of its gas marketing business, Spire Marketing, to Boardwalk Pipelines for $215 million in cash.
The divestment aligns with the company’s renewed focus on core utility operations as it also seeks to improve the risk profile and enhance long-term earnings visibility. The company will use the net proceeds from the transaction to partially fund the acquisition of Piedmont Natural Gas Tennessee’s business and for general corporate purposes.
Spire is increasingly focusing on its core regulated gas utility business, which continues to drive earnings. In its second quarter of fiscal 2026, net income increased to $217.6 million, or $3.51 per diluted share, compared to $189.3 million, or $3.17 per share, delivered in the same quarter last year.
On the other hand, adjusted earnings totaled $223.7 million, or $3.76 per share, compared to $189.3 million, or $3.17 per share, last year. The results reflect growth in the Gas Utility segment.
Spire Inc. is a major American public utility holding company that primarily focuses on distributing natural gas to nearly 2 million homes and businesses across Alabama, Mississippi, Missouri, and Tennessee. As the fifth-largest publicly traded natural gas company in the U.S., it manages utility operations, pipelines, storage facilities, and marketing.
5. PPL Corporation (NYSE:PPL)
Stock Upside Potential: 14.74%
Number of Hedge Fund Holders: 42
PPL Corporation (NYSE:PPL) is one of the high growth utility stocks to buy according to analysts. On April 30, PPL Corporation subsidiaries Louisville Gas and Electric Company and Kentucky Utilities entered into a strategic partnership with X-energy Inc. (NASDAQ:XE).
The companies are joining forces to explore the potential deployment of X-energy’s Xe-100 small modular reactor to generate nuclear energy. The push comes amid growing demand for long-term, reliable, clean energy. Consequently, they have begun feasibility activities and will explore opportunities for small modular reactor deployments to support long-term grid reliability.
The PPL Corporation subsidiaries seek to capitalize on Kentucky’s push for nuclear energy to meet its growing energy needs. The companies are also open to working with hyperscalers on the effort. The state’s governor, Andy Beshear, has already passed into law a Nuclear Reactor Site Readiness Pilot Program that includes a $75 million grant initiative to support nuclear site feasibility studies.
PPL Corporation is a major U.S. energy company that delivers electricity and natural gas to over 3.6 million customers across Pennsylvania, Kentucky, and Rhode Island. The company focuses on modernizing utility grids, investing in smart technologies to improve reliability, and transitioning to cleaner energy sources to support growing infrastructure needs.
4. Constellation Energy Corporation (NASDAQ:CEG)
Stock Upside Potential: 17.08%
Number of Hedge Fund Holders: 76
Constellation Energy Corporation (NASDAQ:CEG) is one of the high-growth utility stocks to buy according to analysts. On April 24, Evercore ISI resumed coverage of Constellation Energy following the completion of a $26.6 billion acquisition of Calpine Corporation early in the year.
The research firm maintains an Outperform rating and has set a $380 price target. The positive stance underscores confidence in the company’s long-term prospects, as the acquisition is poised to enhance energy capacity across nuclear, natural gas, geothermal, hydro, wind, solar, and battery storage to about 55 gigawatts.
In addition, the Calpine acquisition enhances Constellation Energy’s ability to serve over 2.5 million retail accounts, including Fortune 100 entities. Evercore ISI also expects the company to be well-positioned to produce 10% of US clean energy amid strong demand during the artificial intelligence revolution.
Consequently, the research firm views the company as well-positioned among large-cap independent power producers to address the massive load growth tied to AI and data center build-out.
Constellation Energy Corporation is the largest producer of carbon-free energy in the United States, specializing in generating and supplying electricity from nuclear, hydro, wind, and solar assets. As a major clean energy provider, it powers homes, businesses, and government entities, holding a dominant position in supplying power to Fortune 100 companies.
3. FirstEnergy Corp. (NYSE:FE)
Stock Upside Potential: 17.50%
Number of Hedge Fund Holders: 41
FirstEnergy Corp. (NYSE:FE) is one of the high growth utility stocks to buy according to analysts. On April 30, Goldman Sachs reiterated a Buy rating on FirstEnergy Corp. and set a $54 price target.
The investment bank has touted the company’s outlook following solid first-quarter results that affirmed underlying growth. Earnings increased to $405 million, or $0.70 a share, compared to $360 million, or $0.62 a share, delivered in the same quarter last year. The earnings increase came on the back of revenue soaring to $4.2 billion, up from $3.8 billion in the first quarter of last year.
Additionally, First Energy reiterated its 2026 Core Earnings guidance of between $2.62 and $2.82 per share. The earnings outlook is supported by the Energize365 capital investment plan of $6 billion for distribution infrastructure renewal and grid modernization.
Goldman Sachs remains confident that the company will deliver at the top end of management’s guidance of 6% to 8% earnings-per-share growth through 2030. The investment bank expects data center growth to be the main upside driver, given the company’s already contracted 4.3 gigawatts of demand.
FirstEnergy Corp. is a major U.S. investor-owned electric utility holding company that generates, transmits, and distributes electricity to over 6 million customers. It operates a vast network of 24,000 miles of transmission lines and roughly 269,000 miles of distribution lines, focusing on regulated utility operations and infrastructure modernization.
2. NRG Energy, Inc. (NYSE:NRG)
Stock Upside Potential: 27.91%
Number of Hedge Fund Holders: 63
NRG Energy Inc. (NYSE:NRG) is one of the high growth utility stocks to buy according to analysts. On May 5, NRG Energy Inc. reiterated that demand for its product continues to grow despite a significant decrease in earnings in the first quarter.
Net income fell by $625 million to $125 million, attributed to unrealized non-cash losses from mark-to-market economic hedges. In addition, NRG Energy felt the brunt of lower natural gas prices compared to the same period last year. Adjusted net income came in at $308 million, down $223 million from last year’s same quarter. Adjusted earnings per share totaled $1.49, compared to $2.68 in the same quarter last year.
Amid a significant earnings decline, NRG Energy has reiterated its full-year guidance and expects adjusted net income of $1.685 billion to $2.115 billion. Adjusted earnings per share are expected to range between $7.90 and $9.90. The company also plans to return $1 billion to shareholders through share repurchases and $407 million through dividends. It has already declared a quarterly dividend of $0.475 per share, or $1.90 on an annualized basis, to be paid on May 15 to shareholders of record as of May 1, 2026.
NRG Energy, Inc. is a major integrated power company that generates electricity and supplies it to millions of residential, commercial, and industrial customers across North America. They operate a diverse portfolio of power generation (natural gas, coal, oil, nuclear, solar) and provide retail electricity services, often using the brand Reliant in Texas and NRG in other regions.
1. PG&E Corporation (NYSE:PCG)
Stock Upside Potential: 41.36%
Number of Hedge Fund Holders: 80
PG&E Corporation is one of the high growth utility stocks to buy according to analysts. On April 28, analysts at UBS reiterated a Buy rating on PG&E Corp and set a $23 price target. The research firm remains confident in the company’s outlook, given the progress on the California wildfire legislation.
The research firm expects positive hearings in May on the California Earthquake Authority’s review of its recommendation on wildfire liability. It also expects serious efforts on the legislation, which is expected to serve as a catalyst until September 15, the end of the session.
Similarly, the research firm has touted PG&E as one of the top 5 companies in the utility sector, with solid earnings-per-share growth. Its 9% growth rate is among the highest, and the company does not require equity financing through at least 2030. In the first quarter of 2026, the company delivered earnings per share of $0.43, beating consensus estimates of $0.39. Revenue came in at $6.88 billion, above the $6.38 billion expected.
PG&E Corporation is a holding company and a major utility providing electricity and natural gas to roughly 16 million people in Northern and Central California. It generates, transmits, and distributes power, focusing on clean energy sources like solar, hydro, and wind.
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