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: B, 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 16.72% over the past year, underperforming other utility stocks by -8 percentage points.

Pampa Energy has an average 1 year price target of $97.00, an upside of 16.31% from Pampa Energy's current stock price of $83.40.

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.

Sabesp (NYSE:SBS) is the #2 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 Sabesp (NYSE:SBS) is: Value: B, Growth: B, Momentum: B, Sentiment: C, Safety: C, Financials: C, and AI: A.

Sabesp (NYSE:SBS) 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 SBS as a "A".It passed 10 out of 38 due diligence checks and has weak fundamentals. Sabesp has seen its stock return 65.39% over the past year, overperforming other utility stocks by 41 percentage points.

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

Axia Energia Sa (NYSE:AXIA) has a Due Diligence Score of 13, which is -19 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 5 out of 38 due diligence checks and has weak fundamentals. Axia Energia Sa has seen its stock return 67.15% over the past year, overperforming other utility stocks by 42 percentage points.

Out of 75 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 6.84%, which is 4 percentage points higher than the utility sector average of 2.78%. 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 4.91%, which is 2 percentage points higher than the utility sector average of 2.78%. 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 37.6% indicates that its high dividend yield is sustainable for the long-term.

Avista (NYSE:AVA) has an annual dividend yield of 4.84%, which is 2 percentage points higher than the utility sector average of 2.78%. 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 78.2% indicates that its high dividend yield is sustainable for the long-term.

Utility stocks were up 0.16% in the last day, and up 2.3% over the last week. Digi Power X was the among the top gainers in the utilities sector, gaining 22.11% yesterday.

Shares of companies within the broader tech sector are trading higher amid overall market strength as investors react to reports suggesting that the U.S. and Iran are nearing an agreement to end the Middle East conflict. The sector may be rallying alongside Advanced Micro Devices after the company reported strong Q1 financial results.

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 45 points higher than the utility sector average of 26. It passed 5 out of 7 valuation due diligence checks.

Korea Electric Power's stock has gained 66.49% in the past year. It has overperformed other stocks in the utility sector by 42 percentage points.

Enel Chile Sa (NYSE:ENIC) 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.

Enel Chile Sa has a valuation score of 71, which is 45 points higher than the utility sector average of 26. It passed 5 out of 7 valuation due diligence checks.

Enel Chile Sa's stock has gained 23.68% in the past year. It has underperformed other stocks in the utility sector by -1 percentage points.

Pampa Energy (NYSE:PAM) 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.

Pampa Energy has a valuation score of 43, which is 17 points higher than the utility sector average of 26. It passed 3 out of 7 valuation due diligence checks.

Pampa Energy's stock has gained 16.72% in the past year. It has underperformed other stocks in the utility sector by -8 percentage points.

31.25% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 7.84% over the next year.

2.04% of utility stocks have a Zen Rating of A (Strong Buy), 5.1% of utility stocks are rated B (Buy), 61.22% are rated C (Hold), 23.47% are rated D (Sell), and 8.16% are rated F (Strong Sell).