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:

Central Puerto Sa (NYSE:CEPU) is the #1 top utility stock out of 109 with a Zen Rating of A. Stocks with a rating of A have had an average return of +28.5% per year. Learn more.

The Component Grade breakdown for Central Puerto Sa (NYSE:CEPU) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Central Puerto Sa (NYSE:CEPU) has a Due Diligence Score of 29, which is -3 points lower than the utility sector average of 32. Although this number is below the industry average, our proven quant model rates CEPU as a "A".It passed 11 out of 38 due diligence checks and has average fundamentals. Central Puerto Sa has seen its stock return 31.29% over the past year, overperforming other utility stocks by 17 percentage points.

Axia Energia Sa (NYSE:AXIA) is the #2 top utility stock out of 109 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

The Component Grade breakdown for Axia Energia Sa (NYSE:AXIA) is: Value: C, Growth: A, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: A.

Axia Energia Sa (NYSE:AXIA) has a Due Diligence Score of 15, which is -17 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 6 out of 38 due diligence checks and has weak fundamentals. Axia Energia Sa has seen its stock return 42.17% over the past year, overperforming other utility stocks by 28 percentage points.

Sabesp (NYSE:SBS) is the #3 top utility stock out of 109 with a Zen Rating of B. Stocks with a rating of B have had an average return of +17.17% per year. Learn more.

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

Sabesp (NYSE:SBS) has a Due Diligence Score of 27, which is -5 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 "B".It passed 11 out of 38 due diligence checks and has average fundamentals. Sabesp has seen its stock return 42.79% over the past year, overperforming other utility stocks by 28 percentage points.

Out of 76 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 7.09%, which is 4 percentage points higher than the utility sector average of 3.01%. 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 65.3% indicates that its high dividend yield is sustainable for the long-term.

Energy Co Of Minas Gerais (NYSE:CIG) has an annual dividend yield of 5.87%, which is 3 percentage points higher than the utility sector average of 3.01%. 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 84.4% indicates that its high dividend yield is sustainable for the long-term.

Kenon Holdings (NYSE:KEN) has an annual dividend yield of 5.54%, which is 3 percentage points higher than the utility sector average of 3.01%. 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 250% indicates that its high dividend yield might not be sustainable for the long-term.

Utility stocks were up 0.2% in the last day, and down -0.97% over the last week. X Energy was the among the top gainers in the utilities sector, gaining 7.22% yesterday.

X-Energy shares are trading higher following reports suggesting that the company is set to join a government program that aims to increase the pace of power plant development for AI data centers.

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 50 points higher than the utility sector average of 21. It passed 5 out of 7 valuation due diligence checks.

Korea Electric Power's stock has dropped -13.3% in the past year. It has underperformed other stocks in the utility sector by -28 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 50 points higher than the utility sector average of 21. It passed 5 out of 7 valuation due diligence checks.

Enel Chile Sa's stock has gained 29.97% in the past year. It has overperformed other stocks in the utility sector by 15 percentage points.

Central Puerto Sa (NYSE:CEPU) 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.

Central Puerto Sa has a valuation score of 43, which is 22 points higher than the utility sector average of 21. It passed 3 out of 7 valuation due diligence checks.

Central Puerto Sa's stock has gained 31.29% in the past year. It has overperformed other stocks in the utility sector by 17 percentage points.

33.33% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 13.29% over the next year.

1% of utility stocks have a Zen Rating of A (Strong Buy), 6% of utility stocks are rated B (Buy), 54% are rated C (Hold), 30% are rated D (Sell), and 9% are rated F (Strong Sell).