Top 3 Picks
2026 Outlook
The Utilities sector is poised for growth driven by the global shift towards clean energy, with investments in renewables and grid modernization expected to accelerate through 2026. Regulatory support and infrastructure spending, potentially boosted by government initiatives, could enhance profitability despite challenges from rising interest rates. By 2026, the sector's outlook remains positive, with projected earnings growth of 4-6% annually and stable demand ensuring reliable cash flows for investors.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Xcel Energy, Inc.
|
67.8 | $74.68 | $47.5B |
|
2
|
PG&E Corporation
|
63.7 | $16.27 | $34.4B |
|
3
|
Ocean Park High Income ETF
|
62.4 | $24.45 | -- |
|
4
|
WEC Energy Group, Inc.
|
62.3 | $106.47 | $36.4B |
|
5
|
Ameren Corporation
|
61.8 | $100.86 | $28.0B |
|
6
|
Duke Energy Corporation
|
61.1 | $117.44 | $95.2B |
|
7
|
Avista Corporation
|
61.0 | $38.72 | $3.0B |
|
8
|
Via Renewables, Inc. 8.75% Series A Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Stock
|
61.0 | $25.45 | -- |
|
9
|
Consolidated Edison, Inc.
|
60.8 | $99.99 | $35.4B |
|
10
|
Public Service Enterprise Group Incorporated
|
60.0 | $80.99 | $41.2B |
|
11
|
Alliant Energy Corporation Common Stock
|
59.9 | $65.59 | $17.3B |
|
12
|
CMS Energy Corporation
|
59.5 | $70.42 | $21.7B |
|
13
|
CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079
|
59.2 | $23.59 | -- |
|
14
|
Evergy, Inc.
|
58.8 | $73.08 | $17.5B |
|
15
|
NiSource Inc.
|
58.8 | $42.16 | $20.3B |
In-Depth Analysis: Top Utilities Stocks
XEL
Xcel Energy manages utilities serving 3.8 million electric customers and 2.2 million natural gas customers in eight states. Its utilities are Northern States Power, which serves customers in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan; Public Service Company of Colorado; and Southwestern Public Service Company, which serves customers in Texas and New Mexico. It is one of the largest …
Xcel Energy is a significant player in the Utilities sector as it serves 3.8 million electric customers and 2.2 million natural gas customers across eight states, including key regions like the Midwest and Rocky Mountains through subsidiaries such as Northern States Power and Public Service Company of Colorado. This extensive reach ensures reliable energy provision, supporting regional economic growth and positioning the company as a cornerstone for sustainable utility services.
Xcel Energy's 13.5% profit margin reflects strong operational efficiency in generating net income from revenues, while its 9.4% ROE indicates effective use of shareholder equity, though room for improvement exists compared to industry peers. Additionally, the 7.4% revenue growth demonstrates robust business expansion, balanced by a P/E ratio of 22.6 that suggests the stock is fairly valued relative to earnings.
Xcel Energy's 7.4% revenue growth underscores its potential for sustained performance by 2026, driven by increasing demand for clean energy and infrastructure investments in its service areas. The company's 13.5% profit margin provides a solid financial foundation for pursuing renewable projects, potentially enhancing long-term value. With a Tradestie Score of 67.8, the stock offers an attractive entry point in a defensive sector, appealing to investors seeking stability amid economic uncertainties.
PCG
PG&E is a holding company whose main subsidiary is Pacific Gas and Electric, a regulated utility operating in Central and Northern California that serves 5.3 million electricity customers and 4.6 million gas customers in 47 of the state's 58 counties. PG&E operated under bankruptcy court supervision between January 2019 and June 2020. In 2004, PG&E sold its unregulated assets as …
PG&E Corporation is a dominant force in the Utilities sector, serving 5.3 million electricity customers and 4.6 million gas customers across 47 counties in Northern and Central California, making it essential for the region's energy infrastructure and economic stability. Its regulated status ensures reliable service delivery, positioning it as a key contributor to California's transition toward sustainable energy solutions.
PG&E's 10.5% profit margin and 8.8% ROE reflect stable profitability and effective equity utilization, particularly as the company has emerged from bankruptcy supervision. With 5.2% revenue growth and a P/E ratio of 13.5, these metrics indicate a financially healthy utility capable of sustaining operations amid regulatory challenges.
In 2026, PG&E's 5.2% revenue growth and low P/E ratio of 13.5 suggest the stock is undervalued, offering potential for capital appreciation as demand for utilities rises with California's population and economic expansion. The company's focus on infrastructure upgrades and renewable energy aligns with state policies, enhancing long-term earnings prospects. Additionally, a Tradestie Score of 63.7 indicates moderate upside, making it an attractive buy for investors seeking stable, dividend-oriented returns in the sector.
DUKH
DUKH, the Ocean Park High Income ETF, matters in the Utilities sector by providing targeted exposure to high-yield utility stocks, which offer stable dividends and income generation essential for investors navigating sector volatility. With a Tradestie Score of 62.4/100, it represents a moderately viable option for diversification in an industry critical for energy infrastructure and sustainability trends.
Despite limited financial data, DUKH's Tradestie Score of 62.4/100 indicates moderate financial health, suggesting potential for consistent returns from its high-income utility holdings. This score reflects a balanced risk profile, likely supported by the sector's inherent stability and dividend reliability.
By 2026, DUKH could benefit from the accelerating demand for utilities driven by global electrification and renewable energy initiatives, potentially enhancing its high-income yields. The Tradestie Score of 62.4/100 signals room for upside as interest rates may stabilize, making high-dividend ETFs more attractive. Investors should consider DUKH for its portfolio diversification benefits, given the sector's historical resilience and projected growth in infrastructure investments.
WEC
WEC Energy Group's electric and gas utility businesses serve electric and gas customers in Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 49% electric generation and distribution, 32% gas distribution, 10% electric transmission, 7% unregulated renewable energy and 2% LNG distribution and generation.
WEC Energy Group matters in the Utilities sector as a key provider of electric and gas services to millions in the Midwest, including Illinois, Michigan, Minnesota, and Wisconsin, supported by its 60% stake in American Transmission Co. for enhanced energy infrastructure. Its asset mix, with 49% in electric generation and distribution and 32% in gas, positions it as a diversified player essential for regional energy reliability and the shift toward sustainable utilities.
WEC exhibits strong financial health with a 17.8% profit margin, indicating efficient cost management in a regulated industry. Its 12.8% ROE and 12.9% revenue growth further demonstrate solid returns on equity and expansion potential, making it a stable performer amid sector challenges.
WEC's 12.9% revenue growth and 20.1 P/E ratio suggest undervalued growth potential in 2026, driven by increasing demand for reliable utilities in the Midwest. The company's strategic assets, including 49% in electric generation and its transmission stake, align with the accelerating transition to renewables, potentially boosting earnings. Additionally, WEC's Tradestie Score of 62.3 indicates moderate appeal, supported by its profitability metrics, making it a compelling buy for investors seeking defensive growth in a stable sector.
AEE
Ameren owns rate-regulated generation, transmission, and distribution networks that deliver electricity and natural gas through the company's two main subsidiaries, Ameren Missouri and Ameren Illinois. It serves 2.5 million electricity customers and approximately 1 million natural gas customers accross its two service territories.
Ameren Corporation is a key player in the Utilities sector due to its extensive rate-regulated networks serving 2.5 million electricity customers and 1 million natural gas customers in Missouri and Illinois, providing essential energy infrastructure in a vital region. Its stable operations through subsidiaries like Ameren Missouri and Ameren Illinois ensure reliable power delivery, contributing to regional economic stability and energy security.
Ameren's 16.3% profit margin and 11.4% ROE reflect strong profitability and efficient use of equity, indicating a healthy financial position in the utilities sector. Additionally, the company's 24.8% revenue growth demonstrates robust expansion, though its P/E ratio of 19.4 suggests a reasonable valuation relative to earnings, supported by a Tradestie Score of 61.8 indicating moderate investment appeal.
Ameren's impressive 24.8% revenue growth signals potential for sustained expansion by 2026, driven by increasing demand for electricity and natural gas in its service areas. The company's solid financial health, evidenced by a 16.3% profit margin and 11.4% ROE, positions it to benefit from regulatory stability and potential clean energy investments. With a P/E ratio of 19.4, the stock offers an attractive entry point for investors seeking reliable returns in the utilities sector amid projected energy demand growth.
DUK
Duke Energy is one of the largest US utilities, with regulated utilities in the Carolinas, Indiana, Florida, Ohio, and Kentucky that deliver electricity to more than 8 million customers. Its natural gas utilities serve more than 1.6 million customers.
Duke Energy stands out in the Utilities sector as one of the largest U.S. providers, delivering electricity to over 8 million customers and natural gas to more than 1.6 million across key states like the Carolinas, Florida, and Indiana, making it a cornerstone of regional energy infrastructure and reliability.
Duke Energy's 16.0% profit margin reflects strong operational efficiency in a regulated industry, while its 9.9% ROE indicates effective use of shareholder equity; combined with 4.8% revenue growth, these metrics suggest a financially healthy company with sustainable earnings potential at a P/E ratio of 18.5.
Duke Energy's steady 4.8% revenue growth and expanding customer base position it for continued demand in 2026, driven by population growth and energy needs in its service areas. The company's focus on regulated utilities and potential investments in renewables could enhance profitability amid energy transition trends. With a Tradestie Score of 61.1, it offers a compelling risk-adjusted opportunity for investors seeking stable dividends and long-term growth in the sector.
AVA
Avista Corp is an electric and natural gas utility company. The company has two business segments including Avista Utilities, which provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho, and also provides natural gas distribution service in parts of northeastern and southwestern Oregon. Avista Utilities has electric generating facilities in Washington, …
Avista Corporation matters in the Utilities sector as a key regional provider of essential electric and natural gas services in eastern Washington and northern Idaho, supporting energy infrastructure and reliability for over 400,000 customers. Its dual focus on electric distribution and transmission, along with natural gas, positions it to capitalize on the sector's shift toward sustainable energy solutions amid growing regional demand.
Avista's 9.6% profit margin reflects efficient operations in a regulated utility environment, while its 7.3% ROE indicates moderate returns on equity, suggesting stable but not exceptional financial leverage. With 2.3% revenue growth and a P/E ratio of 16.4, the company demonstrates solid financial health, balancing steady income generation against sector norms for valuation.
Avista's projected stability in the Utilities sector, driven by 2.3% revenue growth and a reasonable P/E of 16.4, makes it an attractive buy for 2026 as demand for reliable energy services rises with regional population growth. The company's 9.6% profit margin underscores its ability to maintain profitability amid potential regulatory support for infrastructure investments. Additionally, as electrification and clean energy trends accelerate, Avista's established operations could deliver consistent dividends and long-term capital appreciation by 2026.
VIASP
Via Renewables Inc is an independent retail energy services company. It provides residential and commercial customers in competitive markets across the United States with an alternative choice for natural gas and electricity. Via Renewables offers its customers a variety of product and service choices, including stable and predictable energy costs and green product alternatives. Its segments are Retail Electricity and …
Via Renewables matters in the Utilities sector as an independent retail energy provider offering alternative natural gas and electricity options in competitive US markets, addressing growing consumer demand for diversified energy choices amid the shift towards renewables. This positions the company to influence market dynamics by enhancing competition and accessibility in energy services.
With a Tradestie Score of 61.0/100 indicating moderate financial health and limited available data, Via Renewables' 8.75% fixed-to-floating rate preferred stock suggests potential for stable dividend payouts, reflecting the company's capacity to maintain cash flows in a competitive sector.
By 2026, VIASP's 8.75% dividend yield could deliver reliable income, especially if interest rates rise, converting to a floating rate that may enhance returns in a high-inflation environment. The Utilities sector's projected growth in renewable energy adoption is expected to strengthen Via Renewables' market share and revenue streams. Additionally, as an independent provider in deregulated markets, the company is well-positioned to capitalize on increasing demand for flexible energy solutions, potentially driving stock appreciation.
ED
Con Ed is a holding company for Consolidated Edison of New York, or CECONY, and Orange & Rockland, or O&R. These utilities provide steam, natural gas, and electricity to customers in southeastern New York—including New York City—and small parts of New Jersey. The two utilities generate nearly all of Con Ed's earnings following the sale of its clean energy business …
Consolidated Edison is a pivotal player in the Utilities sector as it serves over 3.5 million customers in the New York metropolitan area, providing essential electricity, gas, and steam that underpin the region's economic and infrastructural stability. Its strategic focus on regulated utilities in a high-demand urban market like New York City makes it a benchmark for reliability and service delivery in the sector.
Con Ed's profit margin of 12.3% reflects strong operational efficiency in a regulated environment, while its ROE of 8.8% indicates moderate returns on shareholder equity, suggesting stable financial health despite industry norms. The 10.7% revenue growth demonstrates effective expansion amid rising energy demands, supported by a P/E ratio of 17.5 that aligns with reasonable valuations for utilities.
Con Ed's 10.7% revenue growth signals robust potential for continued earnings expansion by 2026, driven by increasing urban energy needs and infrastructure investments in New York. Its P/E ratio of 17.5 offers an attractive entry point compared to sector averages, providing opportunities for dividend growth and capital appreciation. As a regulated utility, the company benefits from steady cash flows and resilience in economic cycles, making it a compelling hold for long-term investors seeking stability.
PEG
Public Service Enterprise Group is the holding company for a regulated utility (PSE&G) and PSEG Power, which owns all or a share of three nuclear plans and clean energy projects. PSE&G provides regulated gas and electricity delivery services in New Jersey to a combined 4.3 million customers. Public Service Enterprise Group also operates the Long Island Power Authority system. In …
Public Service Enterprise Group matters in the Utilities sector as a major holding company for PSE&G, which delivers regulated gas and electricity to 4.3 million customers in New Jersey, ensuring reliable energy services for a densely populated region. Its ownership of nuclear plants and clean energy projects through PSEG Power positions it as a key player in the sector's shift toward sustainable energy solutions.
PEG exhibits strong profitability with a 17.8% profit margin and 12.6% ROE, indicating efficient cost management and effective equity utilization compared to industry peers. The company's 22.1% revenue growth highlights robust financial health, though its 19.4 P/E ratio suggests a moderate valuation in the context of utilities.
PEG's 22.1% revenue growth, driven by its expanding clean energy projects, positions it for continued upside in 2026 as demand for renewables accelerates. The company's solid profitability metrics, including a 17.8% profit margin and 12.6% ROE, underscore its ability to generate stable returns and support dividend payments. As a regulated utility serving a large customer base, PEG offers resilience against economic volatility, making it an attractive long-term investment.
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.