Sectors & IndustriesUtilities

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:

Sabesp (NYSE:SBS) 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 +32.52% per year. Learn more.

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

Sabesp (NYSE:SBS) has a Due Diligence Score of 33, which is equal to the utility sector average of 33. It passed 12 out of 38 due diligence checks and has average fundamentals. Sabesp has seen its stock return 12.42% over the past year, underperforming other utility stocks by -8 percentage points.

Brazilian Electric Power Co (NYSE:EBR) 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 +19.88% per year. Learn more.

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

Brazilian Electric Power Co (NYSE:EBR) has a Due Diligence Score of 31, which is -2 points lower than the utility sector average of 33. Although this number is below the industry average, our proven quant model rates EBR as a "B".It passed 11 out of 38 due diligence checks and has average fundamentals. Brazilian Electric Power Co has seen its stock lose -20.29% over the past year, underperforming other utility stocks by -41 percentage points.

Pampa Energy (NYSE:PAM) 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 +19.88% per year. Learn more.

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

Pampa Energy (NYSE:PAM) has a Due Diligence Score of 67, which is 34 points higher than the utility sector average of 33. It passed 22 out of 33 due diligence checks and has strong fundamentals. Pampa Energy has seen its stock return 110.52% over the past year, overperforming other utility stocks by 90 percentage points.

Pampa Energy has an average 1 year price target of $93.50, an upside of 13.42% from Pampa Energy's current stock price of $82.44.

Pampa Energy stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Pampa 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 72 utility stocks that have issued dividends in the past year, the 3 utility stocks with the highest dividend yields are:

Xplr Infrastructure (NYSE:XIFR) has an annual dividend yield of 30.96%, which is 28 percentage points higher than the utility sector average of 3.2%. Xplr Infrastructure's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Xplr Infrastructure's dividend has shown consistent growth over the last 10 years.

Xplr Infrastructure's dividend payout ratio of -1,086% indicates that its high dividend yield might not be sustainable for the long-term.

Kenon Holdings (NYSE:KEN) has an annual dividend yield of 11.12%, which is 8 percentage points higher than the utility sector average of 3.2%. 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 118.8% indicates that its high dividend yield might not be sustainable for the long-term.

Energy Co Of Minas Gerais (NYSE:CIG) has an annual dividend yield of 11.1%, which is 8 percentage points higher than the utility sector average of 3.2%. 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 2.19% in the last day, and up 2.45% over the last week. Venture Global was the among the top gainers in the utilities sector, gaining 10.64% yesterday.

Shares of oil and gas companies are trading higher amid weakness in the dollar after the US launched strikes on Houthi targets. Additionally, strong Chinese economic data could be lifting the demand outlook.

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 14, which is -13 points higher than the utility sector average of 27. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates KEP a Valuation Rating of "A".

Korea Electric Power's stock has dropped -18.53% in the past year. It has underperformed other stocks in the utility sector by -39 percentage points.

Brazilian Electric Power Co (NYSE:EBR) 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.

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 dropped -20.29% in the past year. It has underperformed other stocks in the utility sector by -41 percentage points.

Aes (NYSE:AES) 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.

Aes has a valuation score of 14, which is -13 points higher than the utility sector average of 27. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates AES a Valuation Rating of "B".

Aes's stock has dropped -18.1% in the past year. It has underperformed other stocks in the utility sector by -39 percentage points.

47.5% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 10.29% over the next year.

0.99% of utility stocks have a Zen Rating of A (Strong Buy), 4.95% of [insert industry name] stocks are rated B (Buy), 63.37% are rated C (Hold), 26.73% are rated D (Sell), and 3.96% are rated F (Strong Sell).