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 30, which is -3 points lower than the utility sector average of 33. Although this number is below the industry average, our proven quant model rates PAM as a "A".It passed 9 out of 33 due diligence checks and has average fundamentals. Pampa Energy has seen its stock return 1.4% over the past year, underperforming other utility stocks by -23 percentage points.

Pampa Energy has an average 1 year price target of $97.00, an upside of 17.72% from Pampa Energy's current stock price of $82.40.

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.

Ge Vernova (NYSE:GEV) 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 Ge Vernova (NYSE:GEV) is: Value: C, Growth: B, Momentum: A, Sentiment: B, Safety: B, Financials: C, and AI: C.

Ge Vernova (NYSE:GEV) has a Due Diligence Score of 39, which is 6 points higher than the utility sector average of 33. It passed 16 out of 38 due diligence checks and has average fundamentals. Ge Vernova has seen its stock return 157.3% over the past year, overperforming other utility stocks by 133 percentage points.

Ge Vernova has an average 1 year price target of $1,129.55, an upside of 5.37% from Ge Vernova's current stock price of $1,071.98.

Ge Vernova stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 20 analysts covering Ge Vernova, 65% have issued a Strong Buy rating, 25% have issued a Buy, 10% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

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

Sabesp (NYSE:SBS) has a Due Diligence Score of 27, which is -6 points lower than the utility sector average of 33. 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 50.85% over the past year, overperforming other utility stocks by 27 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 6.54%, which is 4 percentage points higher than the utility sector average of 2.79%. 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.

Aes (NYSE:AES) has an annual dividend yield of 4.88%, which is 2 percentage points higher than the utility sector average of 2.79%. 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.

Clearway Energy (NYSE:CWEN) has an annual dividend yield of 4.73%, which is 2 percentage points higher than the utility sector average of 2.79%. Clearway Energy's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Clearway Energy's dividend has shown consistent growth over the last 10 years.

Clearway Energy's dividend payout ratio of 4,492.5% indicates that its high dividend yield might not be sustainable for the long-term.

Utility stocks were down -0.17% in the last day, and down -1.77% over the last week. Fluence Energy was the among the top losers in the utilities sector, dropping -15.66% yesterday.

Shares of companies in the broader industrials sector are trading lower. Hotter-than-expected U.S. inflation data and pressure from elevated energy prices may dampen sentiment regarding capital investments.

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 46.85% in the past year. It has overperformed other stocks in the utility sector by 23 percentage points.

Enel Chile Sa (NYSE:ENIC) is the second 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.

Enel Chile Sa 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.

Enel Chile Sa's stock has gained 14.72% in the past year. It has underperformed other stocks in the utility sector by -9 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 16 points higher than the utility sector average of 27. It passed 3 out of 7 valuation due diligence checks.

Pampa Energy's stock has gained 1.4% in the past year. It has underperformed other stocks in the utility sector by -23 percentage points.

34.18% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 9.98% over the next year.

1.03% of utility stocks have a Zen Rating of A (Strong Buy), 5.15% of utility stocks are rated B (Buy), 59.79% are rated C (Hold), 26.8% are rated D (Sell), and 7.22% are rated F (Strong Sell).