Sectors & IndustriesUtilitiesUtilities - Diversified

Best Diversified Utility Stocks to Buy Now (2024)

Top diversified utility stocks in 2024 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 67, which is 28 points higher than the diversified utility industry average of 39. It passed 22 out of 33 due diligence checks and has strong fundamentals. Montauk Renewables has seen its stock lose -52.93% over the past year, underperforming other diversified utility stocks by -62 percentage points.

Montauk Renewables has an average 1 year price target of $6.00, an upside of 36.05% from Montauk Renewables's current stock price of $4.41.

Montauk Renewables stock has a consensus Hold recommendation according to Wall Street analysts. Of the 2 analysts covering Montauk Renewables, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Otter Tail (NASDAQ:OTTR) is the second best diversified utility stock with a Zen Score of 50, which is 11 points higher than the diversified utility industry average of 39. It passed 18 out of 38 due diligence checks and has strong fundamentals. Otter Tail has seen its stock lose -1.7% over the past year, underperforming other diversified utility stocks by -10 percentage points.

Aes (NYSE:AES) is the third best diversified utility stock with a Zen Score of 47, which is 8 points higher than the diversified utility industry average of 39. It passed 17 out of 38 due diligence checks and has strong fundamentals. Aes has seen its stock lose -7.11% over the past year, underperforming other diversified utility stocks by -16 percentage points.

Aes has an average 1 year price target of $22.40, an upside of 38.36% from Aes's current stock price of $16.19.

Aes stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Aes, 60% have issued a Strong Buy rating, 20% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 9 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 14.46%, which is 10 percentage points higher than the diversified utility industry average of 4.55%. Energy Co Of Minas Gerais's dividend payout is not stable, having dropped more than 10% sixteen 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 46% indicates that its high dividend yield is sustainable for the long-term.

Avista (NYSE:AVA) has an annual dividend yield of 4.91%, which is the same as the diversified utility industry average of 4.55%. Avista's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Avista's dividend has shown consistent growth over the last 10 years.

Avista's dividend payout ratio of 75.4% indicates that its high dividend yield is sustainable for the long-term.

Allete (NYSE:ALE) has an annual dividend yield of 4.4%, which is the same as the diversified utility industry average of 4.55%. Allete's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Allete's dividend has shown consistent growth over the last 10 years.

Allete's dividend payout ratio of 71.8% indicates that its dividend yield is sustainable for the long-term.

Diversified utility stocks were down -0.98% in the last day, and down -2.17% over the last week.

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

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

Montauk Renewables (NASDAQ:MNTK) is the most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Montauk Renewables has a valuation score of 57, which is 20 points higher than the diversified utility industry average of 37. It passed 4 out of 7 valuation due diligence checks.

Montauk Renewables's stock has dropped -52.93% in the past year. It has underperformed other stocks in the diversified utility industry by -62 percentage points.

Northwestern Energy Group (NASDAQ:NWE) is the second most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Northwestern Energy Group has a valuation score of 43, which is 6 points higher than the diversified utility industry average of 37. It passed 3 out of 7 valuation due diligence checks.

Northwestern Energy Group's stock has gained 9.32% in the past year. It has overperformed other stocks in the diversified utility industry by 1 percentage points.

Aes (NYSE:AES) is the third most undervalued diversified utility stock based on WallStreetZen's Valuation Score. Aes has a valuation score of 43, which is 6 points higher than the diversified utility industry average of 37. It passed 3 out of 7 valuation due diligence checks.

Aes's stock has dropped -7.11% in the past year. It has underperformed other stocks in the diversified utility industry by -16 percentage points.