In this article, we will discuss the Top Energy and Utility Stocks Wall Street Analysts Are Talking About.
The US Energy Information Administration has increased its forecast for retail electricity sales to better demonstrate expected growth in demand, mainly in the Electricity Reliability Council of Texas (ERCOT) and PJM independent system operators. The revisions were most notable in the broader commercial sector, where data centers remain an expanding demand source. As per EIA, the US commercial electricity sector consumption is expected to grow by 3% in 2025 and by 5% in 2026.
It also expects total U.S. electricity generation this summer to increase by 1% compared to the summer of 2024. This is due to increased power demand from the commercial and industrial sectors. Furthermore, EIA expects that increased natural gas prices this summer will lead to less generation from natural gas-fired power plants as compared with last summer. This is expected to be mitigated by more generation from coal, solar, and hydro.
Key Trends in the Power and Utility Sector
As per PwC, post a period of caution in late 2023, M&A activity in the power and utilities sector saw a significant rebound over the previous 12 months. Between May 2024 to May 2025, total sector deal value touched ~$77.7 billion. This reflects a strong increase as compared to 2023 ($43.3 billion) and 2024 ($29.6 billion) levels. Moving forward, the firm plans to monitor how 3 major dynamics will continue to shape the power and utilities M&A landscape. These dynamics include the increased energy demands of data centers, evolving federal energy policy, as well as higher attention on grid reliability and system resilience.
Amidst such trends, we will now have a look at the Top Energy and Utility Stocks Wall Street Analysts Are Talking About.
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Our Methodology
To list the Top Energy and Utility Stocks Wall Street Analysts Are Talking About, we sifted through several online rankings to shortlist the stocks catering to the broader energy and utility sector. Next, we narrowed the list down to the ones analysts are talking about. Finally, we chose the stocks popular among hedge funds and ranked them according to hedge fund sentiments, as of Q1 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top Energy and Utility Stocks Wall Street Analysts Are Talking About
10. Infinity Natural Resources, Inc. (NYSE:INR)
Number of Hedge Fund Holders: 21
Infinity Natural Resources, Inc. (NYSE:INR) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Siebert Williams Shank & Co analyst Gabriele Sorbara initiated coverage on the company’s stock with a “Buy” rating and a price objective of $23. The analyst’s rating is backed by a combination of factors demonstrating the company’s robust growth potential and strategic positioning. Notably, Infinity Natural Resources, Inc. (NYSE:INR) happens to be a unique, small-cap exploration and production firm in the Appalachia region, emphasizing oil and gas with an increased reinvestment rate, which can fuel significant production growth.
While this growth strategy impacts near-term FCF, it is expected to result in a more attractive valuation regarding enterprise value to EBITDA and net asset value. Furthermore, the analyst highlighted that Infinity Natural Resources, Inc. (NYSE:INR) possesses a clean balance sheet, offering the ability for potential acquisitions and development acceleration. The company’s ability to switch between liquids and dry gas development, along with robust margins and low-cost structure, helps its competitive edge, added Sorbara. Infinity Natural Resources, Inc. (NYSE:INR) delivered robust operational performance in Q1 2025, with production of ~26.5 MBoe/d, demonstrating 13% sequential growth as compared to Q4 2024, aided by consistent well performance throughout the asset base.
9. TotalEnergies SE (NYSE:TTE)
Number of Hedge Fund Holders: 25
TotalEnergies SE (NYSE:TTE) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 17, Bernstein upgraded the company’s stock from “Market Perform” to “Outperform,” adjusting its price target to EUR 67.00 from EUR 69.00. The firm’s analyst Irene Himona highlighted that the company has performed fairly weekly in dollar and euro terms. However, the analyst opines that the weakness has gone far enough.
The firm also pointed to TotalEnergies SE (NYSE:TTE)’s industry-leading low upstream costs, ranking it as the best in class on unit production costs. Furthermore, the company remains well-positioned at the very low end of the curve on non-OPEC marginal costs, added Bernstein.
TotalEnergies SE (NYSE:TTE) is projected to deliver one of the strongest 2025-26 production growth rates among established peers. The research note also stated that the company remains well placed for both market scenarios. These include risks to the upside due to war, and downside risks because of a fundamentally oversupplied oil market in 2025-26. TotalEnergies SE (NYSE:TTE) announced the acquisition from Low Carbon of a pipeline of 8 solar projects with a capacity of 350 MW and 2 battery storage projects possessing a capacity of 85 MW.
Since the solar projects are at an advanced stage of development, they can be operational by 2028. They are expected to produce over 350 GWh/year of renewable electricity, equivalent to the electricity consumption of ~100,000 UK households.
8. New Jersey Resources Corporation (NYSE:NJR)
Number of Hedge Fund Holders: 29
New Jersey Resources Corporation (NYSE:NJR) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Raymond James initiated coverage of the company’s stock with an “Outperform” rating and price objective of $49, as reported by The Fly. The firm remains constructive on New Jersey Resources Corporation (NYSE:NJR)’s capability to differentiate itself from other gas utility players via its well-run core New Jersey Natural Gas utility.
Also, the company has consistently performed well and continues to run a quality financial model, added the firm’s analyst. Despite the larger spending program, the firm believes that New Jersey Resources Corporation (NYSE:NJR)’s financial model has been working incredibly well. The company increased fiscal 2025 net financial EPS (NFEPS) guidance to between $3.15 – $3.30, from the prior range of $3.05 – $3.20. This follows the outperformance of Energy Services during the winter period.
Furthermore, New Jersey Resources Corporation (NYSE:NJR) has maintained a 7% – 9% long-term NFEPS (net financial earnings per share) growth target, on the basis of the target of $2.83 per share for fiscal 2025. During the first 6 months, the capital expenditures came in at $287.1 million, which includes accruals, as compared to $232.6 million during the same period of FY 2024. The rise was mainly because of higher expenditures at NJNG and CEV.
7. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 54
NRG Energy, Inc. (NYSE:NRG) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Raymond James began coverage of the company’s stock with a “Strong Buy” rating and price objective of $195. The analyst sees NRG Energy, Inc. (NYSE:NRG) as a standout independent power producer. The company blends one of the largest retail electricity presences in the US with the LS Power acquisition. It continues to expand its natural gas generation throughout critical markets and has raised its long-term adjusted EPS CAGR from 10% to 14%.
The firm’s analyst highlighted that NRG Energy, Inc. (NYSE:NRG) pulls impressive growth levers, including brownfield sites, gas turbine JV, among others. The growth comes while keeping intact financial flexibility with ~$1 billion in committed repurchases, added the analyst. NRG Energy, Inc. (NYSE:NRG) is also focused on taking advantage of the demand supercycle via the acquisition of assets from LS Power. The highly accretive transaction transforms its generation fleet and enhances the ability to serve customers. The company reaffirmed its 2025 guidance ranges for adjusted EPS and FCFbG (Free Cash Flow Before Growth Investments) of $6.75 – $7.75 and $1,975 – $2,225 million, respectively.
NRG Energy, Inc. (NYSE:NRG) operates as an energy and home services company.
6. American Electric Power Company, Inc. (NASDAQ:AEP)
Number of Hedge Fund Holders: 55
American Electric Power Company, Inc. (NASDAQ:AEP) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Raymond James began coverage of the company’s stock with an “Outperform” rating and a price objective of $115. As per the firm, American Electric Power Company, Inc. (NASDAQ:AEP) stands out as one of the largest electric utilities in the US. It also highlighted the company’s potential to catch an upswing driven by improvement in regulator relationships under new leadership.
American Electric Power Company, Inc. (NASDAQ:AEP)’s $54 billion capital plan aids a 6%-8% earnings growth target through 2029, supported by the 20 GW data center load pipeline by 2030, added Raymond James. American Electric Power Company, Inc. (NASDAQ:AEP) reaffirmed its 2025 operating earnings guidance of $5.75 to $5.95 per share. The company is focused on expanding and improving the power grid and bringing on new generation resources. It continues to see potential for an additional $10 billion of investments over the upcoming 5 years. Furthermore, it determined that the direct tariff exposure on its $54 billion capital plan remains minimal at ~0.3%.
5. Duke Energy Corporation (NYSE:DUK)
Number of Hedge Fund Holders: 56
Duke Energy Corporation (NYSE:DUK) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Raymond James began coverage of the company’s stock with a “Market Perform” rating. The firm believes that Duke Energy Corporation (NYSE:DUK) is a quality name, which continues to trade at a reasonable valuation, with limited rate case risk in 2025-2026. This develops a clear runway for a well-communicated growth strategy, added the analyst. Despite the strong run, the firm expects faster near-term growth.
For Q1 2025, the company announced adjusted EPS of $1.76, making a healthy start to the year. These results were $0.32 above last year, thanks to top-line growth throughout the electric and gas utilities. Duke Energy Corporation (NYSE:DUK) is confident in its outlook and has re-affirmed its 2025 guidance range of $6.17 to $6.42 and long-term EPS growth rate of 5% to 7% through 2029.
In March, Duke Energy Corporation (NYSE:DUK) received approval from the Nuclear Regulatory Commission to extend the operating license for its Oconee nuclear station for an additional 20 years. Considering the 3 generating units producing over 2,600 megawatts, Oconee happens to be the first nuclear station to reach such a milestone and is expected to now power the Carolinas into the 2050s.
4. The Williams Companies, Inc. (NYSE:WMB)
Number of Hedge Fund Holders: 72
The Williams Companies, Inc. (NYSE:WMB) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Wolfe Research upgraded the company’s stock from “Underperform” to “Peer perform.” The change in the rating is mainly backed by rising evidence of a growth inflection, which aids the premium valuation. The upgrade demonstrates The Williams Companies, Inc. (NYSE:WMB)’s thematically appealing position, together with financial flexibility to finance a growing opportunity set, added Wolfe Research.
As per the firm’s analysis, the company remains well-positioned to reap the opportunities available in the broader energy sector. The Williams Companies, Inc. (NYSE:WMB)’s strong pipeline network places it as a critical player in the movement of natural gas across North America. Because of a recent investment in Cogentrix Energy and the outperformance of its base business, The Williams Companies, Inc. (NYSE:WMB) raised its 2025 adjusted EBITDA guidance midpoint by $50 million to $7.7 billion.
Overall, the company’s track record of generating predictable, growing earnings in numerous economic cycles strengthens the value of the company as a stable, long-term investment possessing a strong dividend. The Williams Companies, Inc. (NYSE:WMB) projects its leverage ratio midpoint for 2025 to be 3.65x and has raised the dividend by 5.3% on an annualized basis to $2.00 in 2025 from $1.90 in 2024.
Carillon Tower Advisers, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“The Williams Companies, Inc. (NYSE:WMB) performed well because investors expect it to benefit from growing demand for natural gas over the next several years or even decades. Liquid natural gas exports, onshoring, and data center buildouts could place upward pressure on the company’s volumes across its midstream portfolio. We believe that the company’s share price continues to discount this future benefit due to a very challenging overall energy backdrop.”
3. Talen Energy Corporation (NASDAQ:TLN)
Number of Hedge Fund Holders: 80
Talen Energy Corporation (NASDAQ:TLN) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Raymond James analyst J.R. Weston began coverage of the company’s stock with an “Outperform” rating and a price objective of $314. The analyst believes that the upcoming 2025-2026 auction might clear at the $325/MW-day cap, which can act as a near-term catalyst. With the current market momentum favoring acquirers, mainly with Talen Energy Corporation (NASDAQ:TLN)’s story and equity value fueled by the AWS deal, the company’s M&A potential has been adding to the upside, according to Raymond James.
As per the terms of a new power purchase agreement, Talen Energy Corporation (NASDAQ:TLN) plans to supply electricity to Amazon for operations supporting AI and other cloud technologies at Amazon’s data center campus adjacent to Susquehanna, with the capability to deliver to other sites across Pennsylvania. Under the expanded PPA, at the full contract quantity, Talen Energy Corporation (NASDAQ:TLN) will offer Amazon 1,920 megawatts of carbon-free nuclear power through 2042, with options to further extend the duration. The power delivery schedule is expected to ramp over time, projecting to achieve full volume no later than 2032.
Prosper Stars & Stripes, a long/short equity fund, recently released its Q1 2025 investor letter. Here is what the fund said:
“Talen Energy Corporation (NASDAQ:TLN) was the top contributor in the long book during the first quarter of 2025. Talen is an independent power producer (“IPP”) with 10.7 gigawatts (“GW”) of power producing assets in the 13 state mid-Atlantic region of the U.S. called the Pennsylvania-New Jersey-Maryland (“PJM”) market. As mentioned in previous letters, the company’s crown jewel asset is the 2.2 GW Susquehanna nuclear power plant. Talen signed a long-term power purchase agreement (“PPA”) with Amazon Web Services (“AWS”) for a total of 960 megawatts (“MW”). The first phase for up to 300 MW of power is in place; however, the additional phases are under review by the Federal Energy Regulatory Commission (“FERC”). Given the demand for clean energy and artificial intelligence (“AI”) datacenters, we believe a positive resolution is likely, as the dispute centers on interconnect costs and grid reliability. There are only 3.6 GW of new gas-fired generation projects expected to come online by 2030 in the PJM market. Based on management’s demand forecasts, this is not enough capacity to meet the expected needs of the market. Talen reached an agreement to extend the lives of its reliability-must-run (“RMR”) assets Brandon Shores and H.A. Wagner to the end of the decade rather than ceasing operations in May 2025. These assets will receive fixed payments totaling $180 million annually for the life of the contract. RMR assets are designed to ensure there are fewer or no blackouts when the grid is stressed. We believe the scarcity value of Talen’s assets, financial stewardship of its balance sheet and cash flows, and equity valuation support our price target of approximately $300 per share.”
2. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 94
Exxon Mobil Corporation (NYSE:XOM) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 23, TD Cowen upped its price target on the company’s stock to $128 from $120, while maintaining a “Buy” rating. As per the research firm, Exxon Mobil Corporation (NYSE:XOM) continues to differentiate itself from its peers with the help of technology deployment targeted at improving resource recovery as well as creating deal space. The firm highlighted numerous positive developments for Exxon Mobil Corporation (NYSE:XOM), which include the potential upside to synergies due to the Pioneer Natural Resources acquisition.
Furthermore, it also noted the possibility of a Hess Corporation arbitration ruling before the expiry of a 90-day timeframe. As per TD Cowen’s analyst, Exxon Mobil Corporation (NYSE:XOM)’s Baytown hydrogen project is contingent on regulations that will support the market. This suggests its strategic approach to significant capital investments. In Q1 2025, Exxon Mobil Corporation (NYSE:XOM)’s Energy Products segment saw earnings of $827 million, reflecting an increase of $425 million as compared to Q4 2024 because of stronger North American industry refining margins aided by industry outages, favorable timing effects, as well as lower seasonal expenses.
1. GE Vernova Inc. (NYSE:GEV)
Number of Hedge Fund Holders: 111
GE Vernova Inc. (NYSE:GEV) is one of the Top Energy and Utility Stocks Wall Street Analysts Are Talking About. On June 13, Wolfe Research downgraded the stock to ‘Peer Perform’ from ‘Outperform,’ without the price target, as reported by The Fly. As per the firm’s analyst, the downgrade was all about valuation after the stock’s rally. As per the brokerage, GE Vernova Inc. (NYSE:GEV)’s path to achieve EBITDA between $12 billion and $15 billion by the decade’s end is now priced into the shares. Since most of the positives are now adequately discounted, there is a more balanced relationship between risk and reward.
GE Vernova Inc. (NYSE: GEV) benefited from the increased demand for power, thanks to the growth of artificial intelligence data centers. In Q1 2025, the company’s orders of $10.2 billion increased 8% organically. This was aided by the services’ growth and equipment growth in Power. Notably, revenue came in at $8.0 billion, which was up 11% (15% organically). GE Vernova Inc. (NYSE: GEV)’s margins were aided by more profitable volume, price, and productivity. FCF saw an improvement of $1.6 billion YoY, thanks to the higher down payments at Power and better management of working capital.
Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Notable adds in the quarter included GE Vernova Inc. (NYSE:GEV) and Oracle. GE Vernova is the power, wind and electrification spinoff from the former GE conglomerate. The company benefits from large global market shares across its businesses, high barriers to entry and a substantial installed base that generates multiyear service revenue streams. Now that the company is standing on its own, we believe it is in the early innings of a turnaround story while benefiting from an attractive underlying demand environment. As the world continues to decarbonize, the resulting need for power, wind and electrification equipment is poised to drive attractive growth over the coming years. Our work on AI data center growth and electrification implications strengthened our conviction in GE Vernova in the quarter, particularly its natural gas business, which we believe will need to act as a bridge fuel as technology companies try to balance AI data center growth with decarbonization targets.”
While we acknowledge the potential of GEV 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 GEV and that has 100x upside potential, check out our report about this cheapest AI stock.
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