In this article, we will list the Top 5 Utility Stocks to Buy Now. Please visit Top 10 Utility Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. Public Service Enterprise Group Incorporated (NYSE:PEG)
Stock Upside Potential: 11.94%
Number of Hedge Fund Holders: 49
Public Service Enterprise Group Incorporated (NYSE:PEG) is one of the top utility stocks to buy now. On April 13, BMO Capital reiterated a Market Perform rating on Public Service Enterprise Group Incorporated (NYSE:PEG) and raised its price target to $91 from $90.
The research firm expects limited updates on the company during the upcoming earnings call following the fourth-quarter 2025 refresh. However, it has revised its Q1 2026 earnings estimate of the company to $1.48 a share, slightly below the median consensus estimate of $1.50. It also expects investors’ focus to be on potential generation and storage development and the prospects for long-term nuclear asset contracts.
Having invested $1 billion in regulated infrastructure in Q4 2025 and $3.7 billion for the full year to benefit customers, Public Service Enterprise Group expects its 2026 earnings to increase by over 7% to between $4.28 and $4.40 per share. The company also plans to invest $4.2 billion in regulated assets, up 13.5% from last year, on the back of capital spending of between $24 billion and $28 billion.
Public Service Enterprise Group Incorporated (NYSE:PEG) is a regulated energy company that primarily transmits and distributes electricity and natural gas to millions of customers in New Jersey through its utility, PSE&G. PSEG also owns and operates carbon-free nuclear generation assets through PSEG Power.
4. Xcel Energy Inc. (NASDAQ:XEL)
Stock Upside Potential: 14.36%
Number of Hedge Fund Holders: 57
Xcel Energy Inc. (NASDAQ:XEL) is one of the top utility stocks to buy now. On March 24, UBS reiterated a positive stance on Xcel Energy Inc. (NASDAQ:XEL) despite cutting its price target to $89 from $93 due to valuation concerns. The research firm maintains a Buy rating on the stock and reiterates that the recent stock weakness appears unjustified.
UBS expects investor sentiment for Xcel Energy to improve in the market ahead of Colorado generation approvals. The research firm is also bullish on the regulatory resolutions in Colorado and Minnesota as catalysts that are expected to support the company.
Last year, the company embarked on a five-year investment plan to strengthen its grid and protect against extreme weather. The company also remains committed to meeting the demand for a more electrified economy while delivering safe, reliable, and sustainable energy. It also strives to keep electric and gas bills 28% and 12% below the national average, respectively.
Xcel Energy Inc. (NASDAQ:XEL) is a major U.S. investor-owned utility holding company that generates, transmits, and distributes electricity and natural gas to approximately 3.3 million electric and 1.8 million natural gas customers. They are focused on leading the clean energy transition, aiming for net-zero emissions by 2050.
3. NRG Energy, Inc. (NYSE:NRG)
Stock Upside Potential: 17.50%
Number of Hedge Fund Holders: 63
NRG Energy, Inc. (NYSE:NRG) is one of the top utility stocks to buy now. On April 13, Jefferies raised its price target on NRG Energy, Inc. (NYSE:NRG) to $199 from $181 while maintaining a Buy rating. The positive stance comes amid expectations that the company will announce a new 1GW combined-cycle gas turbine project.
The research firm expects the company to announce the gas turbine project with a hyperscaler in the first half of the year as it seeks to capitalize on the AI boom. The company has already secured GEV turbine slots for 5.4 GW of new generation. In addition, Jefferies projects 5.4 GW of data center upside, leading to $1 billion in EBITDA by 2030 and $2.5 billion by 2033.
On the other hand, the company has priced senior secured notes and senior unsecured notes offering due 2031. The company intends to use net proceeds from the offering and the proposed new term loan B of $900 million to repay part of its outstanding borrowings under the NRG revolving credit facility.
NRG Energy, Inc. (NYSE:NRG) is a competitive energy provider and retailer, serving millions of residential and business customers in the U.S. and Canada. The company generates electricity through a diverse portfolio of power plants, including natural gas and renewables, and offers, through its brands, integrated smart home services and retail electricity plans.
2. PG&E Corporation (NYSE:PCG)
Stock Upside Potential: 28.24%
Number of Hedge Fund Holders: 80
PG&E Corporation (NYSE:PCG) is one of the top utility stocks to buy now. On March 23, Jefferies downgraded PG&E Corporation (NYSE:PCG) to a Hold from a Buy and cut the price target to $19 from $20.
According to the research firm, they are moving to the sidelines, concerned about reduced confidence in the prospects for constructive wildfire liability reform for utilities. The research firm analyst Julian Dumoulin-Smith believes utilities and insurers are not aligned with stakeholder conversations. The lack of sufficient political support to push for structural change also prompted the downgrade.
The remarks follow the stock’s impressive 20% gain at the back of California initiative SB254, the Natural Catastrophe Resiliency Study, which seeks to create long-term reforms in insurance availability, wildfire mitigation, and catastrophe refinancing.
According to Jefferies, the stock’s impressive run might have priced in the prospects of positive regulatory reform. The stock also rallied on expectations of a supportive outcome from the SB254 Phase II initiative.
PG&E Corporation (NYSE:PCG) is an Oakland-based holding company that owns Pacific Gas and Electric Company, a major utility providing electricity and natural gas to over 16 million people across Northern and Central California. It serves 5.6 million electric and 4.6 million natural gas customers and operates energy transmission, distribution, and storage systems.
1. Constellation Energy Corporation (NASDAQ:CEG)
Stock Upside Potential: 29.20%
Number of Hedge Fund Holders: 76
Constellation Energy Corporation (NASDAQ:CEG) is one of the top utility stocks to buy now. On March 25, Constellation Energy Corporation (NASDAQ:CEG) confirmed the completion of $90 million in equipment upgrades at the Calvert Cliffs Clean Energy Center.
Completion of the upgrades at the only nuclear plant in Maryland has had a significant impact on the Calvert County area. That’s because the power plant powers more than 1.3 million homes with emission-free energy while creating thousands of jobs and economic opportunity. The nuclear energy facility contributes about $21 million annually in property taxes while employing more than 800 full-time employees.
The upgrades come on the heels of Constellation Energy confirming that it entered 2026 well-positioned to support America’s growing demand for reliable and clean energy. The company operates the nation’s largest fleet of nuclear, natural gas, and geothermal generation assets.
Consequently, the company expects strong, durable earnings growth of more than 20% through 2030. It also plans to add approximately 9,300 megawatts of capacity through license extensions, incremental generation, and customer-focused demand solutions.
Constellation Energy Corporation (NASDAQ:CEG) is the largest U.S. producer of clean, carbon-free energy and a leading supplier of electricity and natural gas. It operates the nation’s largest nuclear fleet, alongside solar, wind, and hydro assets, generating 10% of America’s emissions-free electricity.
While we acknowledge the potential of CEG 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 CEG and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 12 Best Data Center Stocks to Buy Right Now and Top 10 Growth Stocks in Billionaire Philippe Laffont’s Portfolio.
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