Sectors & IndustriesUtilitiesUtilities - Diversified

Best Diversified Utility Stocks to Buy Now (2023)

Top diversified utility stocks in 2023 ranked by overall Zen Score. See the best diversified utility stocks to buy now, according to analyst forecasts for the utilities - diversified industry.

According to Zen Score, the 3 best diversified utility stocks to buy right now are:

Montauk Renewables (NASDAQ:MNTK) is the top diversified utility stock with a Zen Score of 58, which is 21 points higher than the diversified utility industry average of 37. It passed 19 out of 33 due diligence checks and has strong fundamentals. Montauk Renewables has seen its stock lose -29.7% over the past year, underperforming other diversified utility stocks by -22 percentage points.

Montauk Renewables has an average 1 year price target of $9.00, an upside of 14.5% from Montauk Renewables's current stock price of $7.86.

Montauk Renewables stock has a consensus Strong Sell recommendation according to Wall Street analysts. Of the 1 analyst covering Montauk Renewables, 0% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 100% have issued a Strong Sell.

Otter Tail (NASDAQ:OTTR) is the second best diversified utility stock with a Zen Score of 55, which is 18 points higher than the diversified utility industry average of 37. It passed 20 out of 38 due diligence checks and has strong fundamentals. Otter Tail has seen its stock return 12.78% over the past year, overperforming other diversified utility stocks by 21 percentage points.

Otter Tail has an average 1 year price target of $77.00, an upside of 8.66% from Otter Tail's current stock price of $70.86.

Otter Tail stock has a consensus Hold recommendation according to Wall Street analysts. Of the 4 analysts covering Otter Tail, 25% have issued a Strong Buy rating, 0% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 25% have issued a Strong Sell.

Black Hills (NYSE:BKH) is the third best diversified utility stock with a Zen Score of 45, which is 8 points higher than the diversified utility industry average of 37. It passed 16 out of 38 due diligence checks and has strong fundamentals. Black Hills has seen its stock lose -14.01% over the past year, underperforming other diversified utility stocks by -6 percentage points.

Black Hills has an average 1 year price target of $66.14, an upside of 6.25% from Black Hills's current stock price of $62.25.

Black Hills stock has a consensus Hold recommendation according to Wall Street analysts. Of the 7 analysts covering Black Hills, 0% have issued a Strong Buy rating, 0% have issued a Buy, 71.43% have issued a hold, while 28.57% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 18 diversified utility stocks that have issued dividends in the past year, the 3 diversified utility stocks with the highest dividend yields are:

Energy Co Of Minas Gerais (NYSE:CIG) has an annual dividend yield of 14.31%, which is 10 percentage points higher than the diversified utility industry average of 4.63%. Energy Co Of Minas Gerais's dividend payout is not stable, having dropped more than 10% thirteen times in the last 10 years. Energy Co Of Minas Gerais's dividend has not shown consistent growth over the last 10 years.

Energy Co Of Minas Gerais's dividend payout ratio of 111.8% indicates that its high dividend yield might not be sustainable for the long-term.

Energy Co Of Parana (NYSE:ELP) has an annual dividend yield of 8.54%, which is 4 percentage points higher than the diversified utility industry average of 4.63%. Energy Co Of Parana's dividend payout is not stable, having dropped more than 10% seven times in the last 10 years. Energy Co Of Parana's dividend has shown consistent growth over the last 10 years.

Energy Co Of Parana's dividend payout ratio of 180.3% indicates that its high dividend yield might not be sustainable for the long-term.

Entergy (NYSE:ETR) has an annual dividend yield of 4.93%, which is the same as the diversified utility industry average of 4.63%. Entergy's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Entergy's dividend has shown consistent growth over the last 10 years.

Entergy's dividend payout ratio of 77% indicates that its high dividend yield is sustainable for the long-term.

Diversified utility stocks were up 1.25% in the last day, and up 3.5% over the last week.

We couldn't find a catalyst for why diversified utility stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued diversified utility stocks right now are:

Energy Co Of Minas Gerais (NYSE:CIG) is the most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Energy Co Of Minas Gerais has a valuation score of 71, which is 36 points higher than the diversified utility industry average of 35. It passed 5 out of 7 valuation due diligence checks.

Energy Co Of Minas Gerais's stock has dropped -12.91% in the past year. It has underperformed other stocks in the diversified utility industry by -5 percentage points.

Northwestern (NASDAQ:NWE) is the second most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Northwestern has a valuation score of 57, which is 22 points higher than the diversified utility industry average of 35. It passed 4 out of 7 valuation due diligence checks.

Northwestern's stock has dropped -1.48% in the past year. It has overperformed other stocks in the diversified utility industry by 6 percentage points.

Exelon (NASDAQ:EXC) is the third most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Exelon has a valuation score of 57, which is 22 points higher than the diversified utility industry average of 35. It passed 4 out of 7 valuation due diligence checks.

Exelon's stock has dropped -4.21% in the past year. It has overperformed other stocks in the diversified utility industry by 4 percentage points.