Top 3 Picks
Score
2026 Outlook
By 2026, the Electric Utilities sector is poised for robust growth, fueled by the rapid expansion of renewable energy sources like solar and wind, which are expected to account for a larger share of electricity generation amid declining costs and supportive regulations. Infrastructure investments in grid modernization and energy storage will address rising demand from electric vehicles and data centers, potentially boosting sector revenues by 5-7% annually. However, challenges such as regulatory hurdles and supply chain volatility may arise, yet the overall outlook remains positive with projected earnings growth driven by technological advancements and decarbonization efforts.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
XPLR Infrastructure, LP
|
64.8 | $10.17 | $1.0B |
|
2
|
NextEra Energy, Inc.
|
63.4 | $80.93 | $162.0B |
|
3
|
Tennessee Valley Authority Power Bonds 1999 Series A due May 1, 2029
|
63.2 | $24.36 | -- |
|
4
|
PPL Corporation
|
63.0 | $35.11 | $27.1B |
|
5
|
OGE Energy Corp.
|
62.8 | $42.88 | $9.2B |
|
6
|
Clearway Energy, Inc. Class C Common Stock
|
62.7 | $33.96 | $3.5B |
|
7
|
Hawaiian Electric Industries, Inc.
|
62.7 | $12.63 | $1.9B |
|
8
|
Eversource Energy
|
62.5 | $68.06 | $26.6B |
|
9
|
Vistra Corp.
|
62.1 | $165.23 | $68.3B |
|
10
|
NRG Energy, Inc.
|
61.8 | $166.16 | $31.3B |
|
11
|
American Electric Power Company, Inc.
|
61.5 | $115.81 | $60.3B |
|
12
|
The Southern Company Series 2020A 4.95% Junior Subordinated Notes due January 30, 2080
|
61.1 | $20.49 | -- |
|
13
|
The Southern Company Series 2025A 6.50% Junior Subordinated Notes due March 15, 2085
|
61.0 | $25.61 | -- |
|
14
|
CenterPoint Energy, Inc.
|
60.9 | $38.73 | $24.9B |
|
15
|
TXNM Energy, Inc.
|
60.8 | $59.05 | $6.0B |
In-Depth Analysis: Top Electric Utilities Stocks
XIFR
XPLR Infrastructure LP is formed to acquire, manage, and own contracted clean energy projects. It owns interests in wind and solar projects in North America, as well as natural gas infrastructure assets in Texas. Renewable energy assets consist of wind, solar, and solar-plus-storage projects and a stand-alone battery storage project, as well as contracted natural gas pipeline assets. Renewable energy …
XPLR Infrastructure LP matters in the Electric Utilities sector as a key player in the transition to clean energy, owning interests in wind, solar, and solar-plus-storage projects across North America, which address growing demand for renewables amid climate goals. Its additional natural gas infrastructure assets in Texas provide essential grid stability, enhancing its role in a balanced energy mix.
XPLR Infrastructure LP's negative profit margin of -15.2% and ROE of -5.8% highlight current challenges in achieving profitability, potentially due to high initial investments in renewable projects. However, the company's 9.7% revenue growth and a Tradestie Score of 64.8 indicate improving financial health and operational expansion in the competitive clean energy market.
By 2026, XIFR's 9.7% revenue growth suggests strong potential for scaling operations in the expanding renewable sector, driven by increasing demand for wind and solar projects in North America. The company's diversified portfolio, including solar-plus-storage and natural gas assets, positions it to benefit from policy incentives and energy transition trends, potentially improving profitability. With a Tradestie Score of 64.8, indicating moderate upside, investors could see gains as global clean energy adoption accelerates, making XPLR a compelling buy for long-term growth.
NEE
NextEra Energy's regulated utility, Florida Power & Light, is the largest rate-regulated utility in Florida. The utility distributes power to over 6 million customer accounts in Florida and owns 36 gigawatts of generation. FP&L contributes roughly 70% of NextEra's consolidated operating earnings. NextEra Energy Resources, the renewable energy segment, generates and sells power throughout the United States and Canada with …
NextEra Energy matters in the Electric Utilities sector as its subsidiary, Florida Power & Light, is the largest rate-regulated utility in Florida, serving over 6 million customer accounts and owning 36 gigawatts of generation, which drives significant market stability. This dominance contributes approximately 70% of NextEra's consolidated operating earnings, positioning it as a key player in meeting growing energy demands in a major U.S. market.
NextEra's profitability is robust, evidenced by a 24.7% profit margin that highlights efficient cost management in the utilities sector, alongside a 5.3% revenue growth indicating steady expansion. However, its 8.2% ROE suggests moderate returns on equity compared to industry peers, while the 25.6 P/E ratio reflects investor confidence in future growth potential.
Investors should consider buying NextEra Energy stock in 2026 due to its projected revenue growth of 5.3%, driven by increasing demand for renewable energy and the company's 36 gigawatts of generation capacity, which positions it for expansion in a decarbonizing market. Florida Power & Light's stable earnings contribution of about 70% ensures reliable cash flows from serving over 6 million customers, mitigating risks in a regulated environment. Additionally, with a Tradestie Score of 63.4, the stock offers a compelling mix of growth and stability for portfolios focused on long-term utilities trends.
TVE
Tennessee Valley Authority (TVA) is a cornerstone in the Electric Utilities sector, serving over 10 million people across seven U.S. states with reliable power generation and distribution, while also playing a key role in flood control, navigation, and economic development.
With limited financial data, TVA's Tradestie Score of 63.2/100 indicates moderate financial health, suggesting stable profitability from its government-backed operations in a regulated utility environment that ensures consistent revenue streams.
By 2026, TVA's 1999 Series A bonds are attractive due to the projected growth in U.S. electricity demand, driven by data from the Energy Information Administration forecasting a 10-15% increase in consumption, enhancing bond stability. The bonds' fixed interest payments provide a reliable income in a potentially low-interest-rate environment, as indicated by Federal Reserve trends. Additionally, TVA's essential infrastructure role and historical low default rates make it a low-risk option for investors seeking sector exposure ahead of renewable energy transitions.
PPL
PPL is a holding company of regulated utilities in Pennsylvania, Kentucky, and Rhode Island. The Pennsylvania regulated delivery and transmission segment distributes electricity to customers in central and eastern Pennsylvania. In Kentucky, LG&E and KU are involved in regulated electricity generation, transmission, and distribution. LG&E also provides regulated natural gas distribution. Rhode Island Energy operates electric and gas utilities in …
PPL Corporation is a significant player in the Electric Utilities sector due to its role as a regulated utility holding company serving over 3 million customers across Pennsylvania, Kentucky, and Rhode Island, with operations in electricity distribution, transmission, and generation that ensure reliable energy supply in key U.S. regions.
PPL's 12.2% profit margin reflects strong operational efficiency in a regulated environment, while its 7.7% ROE indicates moderate returns on shareholder equity, though revenue growth of 8.4% demonstrates healthy expansion amid industry challenges.
PPL's 8.4% revenue growth and 24.0 P/E ratio suggest it is poised for continued earnings appreciation by 2026, driven by increasing demand for clean energy and infrastructure investments in its service areas. The company's regulated status provides stable cash flows and potential for dividend increases, making it an attractive option for income-focused investors. Additionally, with a Tradestie Score of 63.0, PPL offers a solid risk-adjusted opportunity in the utilities sector amid electrification trends.
OGE
OGE Energy is a holding company for Oklahoma Gas & Electric, a regulated utility with electricity generation, transmission, and distribution service for 900,000 customers in Oklahoma and western Arkansas. In December 2021, OGE divested its 25.5% stake in Enable Midstream Partners, an oil and gas services company it created in 2013 through a unit exchange merger with Energy Transfer. OGE …
OGE Energy Corp. is a key player in the Electric Utilities sector due to its operation of Oklahoma Gas & Electric, which provides essential electricity generation, transmission, and distribution services to 900,000 customers in Oklahoma and western Arkansas, supporting regional energy reliability. The December 2021 divestiture of its 25.5% stake in Enable Midstream Partners has allowed OGE to sharpen its focus on core regulated utility operations, enhancing its stability and relevance in an increasingly decarbonized energy landscape.
OGE Energy exhibits strong profitability with a 15.3% profit margin, reflecting efficient cost management and solid earnings generation, while a 10.7% ROE indicates effective use of shareholder equity. Its 8.2% revenue growth and a P/E ratio of 17.3 suggest financial health and reasonable valuation, positioning the company for sustained performance in the sector.
OGE's robust 8.2% revenue growth and 15.3% profit margin highlight its potential to capitalize on rising electricity demand by 2026, driven by population growth in its service areas and potential investments in renewable energy infrastructure. The company's 10.7% ROE demonstrates strong returns on equity, making it appealing for income-focused investors seeking stable dividends from a regulated utility. Additionally, the 2021 divestiture streamlines operations, reducing exposure to volatile oil and gas markets and positioning OGE for enhanced long-term value in a sector favoring reliable, utility-scale providers.
CWEN
Clearway Energy Inc is a publicly-traded energy infrastructure investor with a focus on investments in clean energy and owner of modern, sustainable and long-term contracted assets across North America. The company segments its operations into Flexible Generation, renewables and Corporate divisions.
Clearway Energy Inc. matters in the Electric Utilities sector as a leading investor in clean energy infrastructure, owning modern, long-term contracted assets across North America that support the transition to sustainable power. Its diversified operations in Flexible Generation and renewables position it to capitalize on growing demand for reliable and eco-friendly energy solutions amid sector-wide decarbonization efforts.
Clearway Energy's 20.1% profit margin indicates strong operational efficiency, but a negative ROE of -1.4% and a revenue decline of -11.7% suggest challenges in equity returns and top-line growth, potentially stemming from market fluctuations or investments in expanding renewable assets.
By 2026, Clearway Energy's focus on clean energy assets is poised to benefit from accelerating renewable energy adoption in North America, driven by policy incentives and increasing demand for sustainable power. Its P/E ratio of 14.2 indicates reasonable valuation relative to peers, offering potential upside if revenue stabilizes. Additionally, the company's long-term contracted assets and a Tradestie Score of 62.7 highlight moderate investment appeal in a recovering utilities sector.
HE
Hawaiian Electric Industries is the parent company of three Hawaii-based regulated utilities and owns a 10% minority interest in Hawaii's American Savings Bank. The utilities provide electricity on the five islands of Oahu, Hawaii, Maui, Molokai, and Lanai.
Hawaiian Electric Industries matters in the Electric Utilities sector as it serves as the primary provider of electricity to Hawaii's five main islands, supporting the state's economy, tourism, and renewable energy transitions. Its diversified operations, including a 10% stake in Hawaii's American Savings Bank, add financial stability and broaden its influence beyond pure utilities.
The company's profit margin of 0.5% reflects thin profitability, typical for regulated utilities with controlled pricing, while its ROE of 7.0% indicates moderate efficiency in generating returns on equity. However, the negative revenue growth of -5.1% signals potential challenges in demand or costs, though the low P/E ratio of 5.8 suggests the stock may be undervalued relative to earnings.
By 2026, investors should consider Hawaiian Electric due to its low P/E ratio of 5.8, indicating undervaluation and potential for appreciation as Hawaii advances its renewable energy goals, which could stabilize and grow revenues. The company's regulated status provides steady cash flows and resilience against economic fluctuations, supported by a Tradestie Score of 62.7 that reflects a solid investment profile. Additionally, increasing demand for sustainable energy in Hawaii positions the company for long-term growth opportunities.
ES
Eversource Energy is a diversified holding company with subsidiaries that provide rate-regulated electric and gas distribution service to more than 4 million customers in the Northeast US. Eversource expanded its service territories with acquisitions of NStar (2012), Aquarion (2017), and Columbia Gas (2020). In 2024 Eversource exited its 50% partnership with European utility Orsted to develop 2 gigawatts of offshore …
Eversource Energy stands out in the Electric Utilities sector as a major provider serving over 4 million customers in the Northeast US, with strategic acquisitions like NStar in 2012 and Aquarion in 2017 enhancing its market presence and diversification into gas and water services.
Eversource's 10.2% profit margin reflects strong operational efficiency in a regulated environment, while its 8.6% ROE indicates moderate returns on shareholder equity; additionally, 5.1% revenue growth and a P/E ratio of 18.7 suggest a stable financial position with reasonable valuation compared to industry peers.
Eversource's consistent 5.1% revenue growth highlights its potential for sustained demand in the expanding Northeast energy market, supported by its acquisition-driven expansion that could drive further customer gains by 2026. The company's Tradestie Score of 62.5 indicates a solid investment opportunity, and with utilities likely benefiting from regulatory stability and increasing electrification trends, ES stock offers attractive long-term upside potential in 2026.
VST
Vistra Energy is one of the largest power producers and retail energy providers in the US. Following the 2024 Energy Harbor acquisition, Vistra owns 41 gigawatts of nuclear, coal, natural gas, solar, and energy storage assets. The proposed Lotus Partners acquisition would add 2.6 GW of natural gas generation. Its retail electricity business serves 5 million customers in 20 states, …
Vistra Corp. is a key player in the Electric Utilities sector as one of the largest U.S. power producers, operating a diverse 41 GW portfolio of nuclear, coal, natural gas, solar, and energy storage assets that enhance energy reliability and support the transition to renewables. Its recent Energy Harbor acquisition and proposed Lotus Partners deal, adding 2.6 GW of natural gas, strengthen its competitive position by expanding capacity and addressing growing demand for stable energy sources.
Vistra's profit margin of 6.7% reflects moderate efficiency in converting revenue to profit, while its ROE of 17.3% indicates strong returns on equity, demonstrating effective capital utilization. However, the negative revenue growth of -20.9% highlights short-term challenges, though the elevated P/E ratio of 58.5 suggests investor confidence in future earnings potential.
By 2026, Vistra's acquisitions, including the 2.6 GW from Lotus Partners, are expected to boost its asset base to over 43.6 GW, driving revenue growth amid increasing U.S. energy demand. The company's solid ROE of 17.3% and diverse energy mix position it to capitalize on the sector's shift to renewables and storage, potentially improving profitability. With a Tradestie Score of 62.1, Vistra offers a compelling investment for those betting on regulatory support for clean energy transitions and operational efficiencies.
NRG
NRG Energy is one of the largest retail energy providers in the US, with 6 million customers. Vivint Smart Home, which NRG acquired in 2023, has 2 million home-services customers. NRG also is one of the largest US independent power producers, with 13 gigawatts of coal, gas, and oil power generation capacity primarily in Texas. The LS Power asset acquisition …
NRG Energy matters in the Electric Utilities sector as one of the largest US retail providers serving 6 million customers and an additional 2 million through its 2023 acquisition of Vivint Smart Home, enabling it to lead in integrated energy and smart home services. Additionally, as a major independent power producer with 13 gigawatts of coal, gas, and oil generation capacity, NRG plays a critical role in the nation's energy supply and reliability.
NRG's profitability is moderate with a 4.8% profit margin, typical for utilities, but its exceptional 64.2% ROE highlights efficient use of equity to generate returns. Combined with 5.7% revenue growth, this indicates solid financial health and potential for sustained earnings, despite a P/E ratio of 23.9 suggesting market expectations for future expansion.
By 2026, NRG's expanded customer base of 8 million, including 2 million from Vivint, positions it to benefit from growing demand for smart energy solutions amid the US energy transition, potentially driving revenue growth beyond the current 5.7%. The company's strong 64.2% ROE and 13 GW power generation capacity signal operational efficiency and resilience in a sector facing increasing electricity needs. Furthermore, with a P/E ratio of 23.9, the stock offers an attractive entry point for investors seeking exposure to a leading utility player with a Tradestie Score of 61.8, indicating moderate upside potential.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.