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Best Utility Stocks to Buy Now (2025)

Top utility stocks in 2025 ranked by overall Due Diligence Score. See the best utility stocks to buy now, according to analyst forecasts for the utilities sector.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best utility stocks to buy right now are:

Ugi (NYSE:UGI) is the #1 top utility stock out of 108 with a Zen Rating of A. Stocks with a rating of A have had an average return of +32.52% per year. Learn more.

The Component Grade breakdown for Ugi (NYSE:UGI) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Ugi (NYSE:UGI) has a Due Diligence Score of 48, which is 17 points higher than the utility sector average of 31. It passed 16 out of 38 due diligence checks and has strong fundamentals. Ugi has seen its stock return 27.33% over the past year, overperforming other utility stocks by 6 percentage points.

Ugi has an average 1 year price target of $28.00, a downside of -14.5% from Ugi's current stock price of $32.75.

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

Korea Electric Power (NYSE:KEP) is the #2 top utility stock out of 108 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Korea Electric Power (NYSE:KEP) is: Value: A, Growth: B, Momentum: B, Sentiment: C, Safety: C, Financials: C, and AI: A.

Korea Electric Power (NYSE:KEP) has a Due Diligence Score of 21, which is -10 points lower than the utility sector average of 31. Although this number is below the industry average, our proven quant model rates KEP as a "B".It passed 8 out of 38 due diligence checks and has weak fundamentals. Korea Electric Power has seen its stock return 15.84% over the past year, underperforming other utility stocks by -6 percentage points.

Nrg Energy (NYSE:NRG) is the #3 top utility stock out of 108 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Nrg Energy (NYSE:NRG) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: B, and AI: C.

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 33, which is 2 points higher than the utility sector average of 31. It passed 14 out of 38 due diligence checks and has average fundamentals. Nrg Energy has seen its stock return 48.11% over the past year, overperforming other utility stocks by 27 percentage points.

Nrg Energy has an average 1 year price target of $124.00, an upside of 13.21% from Nrg Energy's current stock price of $109.53.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Nrg Energy, 62.5% have issued a Strong Buy rating, 12.5% have issued a Buy, 25% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 65 utility stocks that have issued dividends in the past year, the 3 utility stocks with the highest dividend yields are:

Sabesp (NYSE:SBS) has an annual dividend yield of N/A, which is N/A percentage points lower than the utility sector average of 3.14%. Sabesp's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Sabesp's dividend has not shown consistent growth over the last 10 years.

Sabesp's dividend payout ratio of 53.8% indicates that its dividend yield is sustainable for the long-term.

Kenon Holdings (NYSE:KEN) has an annual dividend yield of N/A, which is N/A percentage points lower than the utility sector average of 3.14%. Kenon Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Kenon Holdings's dividend has shown consistent growth over the last 10 years.

Kenon Holdings's dividend payout ratio of 33.5% indicates that its dividend yield is sustainable for the long-term.

Energy Co Of Minas Gerais (NYSE:CIG) has an annual dividend yield of 11.53%, which is 8 percentage points higher than the utility sector average of 3.14%. Energy Co Of Minas Gerais's dividend payout is not stable, having dropped more than 10% fifteen 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.

Utility stocks were up 0.68% in the last day, and up 2.23% over the last week.

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

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued utility stocks right now are:

Korea Electric Power (NYSE:KEP) is the most undervalued utility stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Korea Electric Power has a valuation score of 71, which is 44 points higher than the utility sector average of 27. It passed 5 out of 7 valuation due diligence checks.

Korea Electric Power's stock has gained 15.84% in the past year. It has underperformed other stocks in the utility sector by -6 percentage points.

Aes (NYSE:AES) is the second most undervalued utility stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Aes has a valuation score of 43, which is 16 points higher than the utility sector average of 27. It passed 3 out of 7 valuation due diligence checks.

Aes's stock has dropped -41.94% in the past year. It has underperformed other stocks in the utility sector by -63 percentage points.

Brazilian Electric Power Co (NYSE:EBR) is the third most undervalued utility stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Brazilian Electric Power Co has a valuation score of 43, which is 16 points higher than the utility sector average of 27. It passed 3 out of 7 valuation due diligence checks.

Brazilian Electric Power Co's stock has gained 4.31% in the past year. It has underperformed other stocks in the utility sector by -17 percentage points.

44.3% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 8.31% over the next year.

1.01% of utility stocks have a Zen Rating of A (Strong Buy), 4.04% of utility stocks are rated B (Buy), 70.71% are rated C (Hold), 19.19% are rated D (Sell), and 5.05% are rated F (Strong Sell).