Sectors & IndustriesUtilities

Best Utility Stocks to Buy Now (2026)

Top utility stocks in 2026 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:

Pampa Energy (NYSE:PAM) 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 Pampa Energy (NYSE:PAM) is: Value: B, Growth: C, Momentum: C, Sentiment: A, Safety: C, Financials: C, and AI: C.

Pampa Energy (NYSE:PAM) has a Due Diligence Score of 33, which is 1 points higher than the utility sector average of 32. It passed 10 out of 33 due diligence checks and has average fundamentals. Pampa Energy has seen its stock return 8.23% over the past year, underperforming other utility stocks by -19 percentage points.

Pampa Energy has an average 1 year price target of $97.00, an upside of 17.5% from Pampa Energy's current stock price of $82.55.

Pampa Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Pampa Energy, 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.

Axia Energia (NYSE:AXIA) 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 Axia Energia (NYSE:AXIA) is: Value: C, Growth: C, Momentum: A, Sentiment: B, Safety: C, Financials: C, and AI: C.

Axia Energia (NYSE:AXIA) has a Due Diligence Score of 23, which is -9 points lower than the utility sector average of 32. Although this number is below the industry average, our proven quant model rates AXIA as a "B".It passed 9 out of 38 due diligence checks and has weak fundamentals. Axia Energia has seen its stock return 86.47% over the past year, overperforming other utility stocks by 59 percentage points.

Genie Energy (NYSE:GNE) 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 Genie Energy (NYSE:GNE) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Genie Energy (NYSE:GNE) has a Due Diligence Score of 45, which is 13 points higher than the utility sector average of 32. It passed 17 out of 38 due diligence checks and has strong fundamentals. Genie Energy has seen its stock lose -9.74% over the past year, underperforming other utility stocks by -37 percentage points.

Genie Energy has an average 1 year price target of $16.00, an upside of 17.47% from Genie Energy's current stock price of $13.62.

Genie Energy stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Genie Energy, 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.

Out of 74 utility stocks that have issued dividends in the past year, the 3 utility stocks with the highest dividend yields are:

Suburban Propane Partners (NYSE:SPH) has an annual dividend yield of 6.88%, which is 4 percentage points higher than the utility sector average of 2.72%. Suburban Propane Partners's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Suburban Propane Partners's dividend has not shown consistent growth over the last 10 years.

Suburban Propane Partners's dividend payout ratio of 48% indicates that its high dividend yield is sustainable for the long-term.

Aes (NYSE:AES) has an annual dividend yield of 4.86%, which is 2 percentage points higher than the utility sector average of 2.72%. Aes's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Aes's dividend has shown consistent growth over the last 10 years.

Aes's dividend payout ratio of 55.9% indicates that its high dividend yield is sustainable for the long-term.

Kenon Holdings (NYSE:KEN) has an annual dividend yield of 4.75%, which is 2 percentage points higher than the utility sector average of 2.72%. 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 378% indicates that its high dividend yield might not be sustainable for the long-term.

Utility stocks were up 0.34% in the last day, and up 0.1% over the last week. Nisource was the among the top gainers in the utilities sector, gaining 0.74% yesterday.

NiSource shares are trading higher after the company announced a new long‑term energy agreement with a subsidiary of Alphabet that will support the development and operation of a large‑scale data center in northern Indiana.

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 43, which is 15 points higher than the utility sector average of 28. It passed 3 out of 7 valuation due diligence checks.

Korea Electric Power's stock has gained 77.65% in the past year. It has overperformed other stocks in the utility sector by 50 percentage points.

Edison International (NYSE:EIX) 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.

Edison International has a valuation score of 43, which is 15 points higher than the utility sector average of 28. It passed 3 out of 7 valuation due diligence checks.

Edison International's stock has gained 27.11% in the past year. It has underperformed other stocks in the utility sector by -1 percentage points.

PG&E (NYSE:PCG) 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.

PG&E has a valuation score of 57, which is 29 points higher than the utility sector average of 28. It passed 4 out of 7 valuation due diligence checks.

PG&E's stock has gained 1.11% in the past year. It has underperformed other stocks in the utility sector by -27 percentage points.

41.77% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 5.61% over the next year.

1.04% of utility stocks have a Zen Rating of A (Strong Buy), 5.21% of utility stocks are rated B (Buy), 58.33% are rated C (Hold), 27.08% are rated D (Sell), and 8.33% are rated F (Strong Sell).