In this article, we will list the 5 High-Growth Utility Stocks to Buy According to Analysts. Please visit 10 High-Growth Utility Stocks to Buy According to Analysts if you would like to see the extended list and the methodology behind it.
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 (NYSE:PPL) 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 (NYSE:PPL) 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 (NASDAQ:CEG) 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 (NASDAQ:CEG) 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. (NYSE:FE) 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. (NYSE:FE) 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. (NYSE:NRG) 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. (NYSE:NRG) 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 (NYSE:PCG) 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 (NYSE:PCG) 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 (NYSE:PCG) 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.
While we acknowledge the potential of PCG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PCG and that has 100x upside potential, check out our report about the cheapest AI stock.
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