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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:

Aes (NYSE:AES) is the #1 top utility stock out of 111 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 Aes (NYSE:AES) is: Value: B, Growth: C, Momentum: C, Sentiment: B, Safety: B, Financials: C, and AI: B.

Aes (NYSE:AES) has a Due Diligence Score of 56, which is 23 points higher than the utility sector average of 33. It passed 20 out of 38 due diligence checks and has strong fundamentals. Aes has seen its stock return 5.97% over the past year, overperforming other utility stocks by 10 percentage points.

Nrg Energy (NYSE:NRG) is the #2 top utility stock out of 111 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 Nrg Energy (NYSE:NRG) is: Value: B, Growth: B, Momentum: D, Sentiment: C, Safety: B, Financials: C, and AI: C.

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 35, which is 2 points higher than the utility sector average of 33. It passed 13 out of 38 due diligence checks and has average fundamentals. Nrg Energy has seen its stock lose -41.93% over the past year, underperforming other utility stocks by -38 percentage points.

Nrg Energy has an average 1 year price target of $180.00, an upside of 83.58% from Nrg Energy's current stock price of $98.05.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Nrg Energy, 50% have issued a Strong Buy rating, 25% have issued a Buy, 25% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Vistra (NYSE:VST) is the #3 top utility stock out of 111 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 Vistra (NYSE:VST) is: Value: B, Growth: B, Momentum: D, Sentiment: D, Safety: C, Financials: B, and AI: C.

Vistra (NYSE:VST) has a Due Diligence Score of 46, which is 13 points higher than the utility sector average of 33. It passed 18 out of 38 due diligence checks and has strong fundamentals. Vistra has seen its stock lose -24.55% over the past year, underperforming other utility stocks by -21 percentage points.

Vistra has an average 1 year price target of $198.50, an upside of 47.57% from Vistra's current stock price of $134.51.

Vistra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 11 analysts covering Vistra, 54.55% have issued a Strong Buy rating, 36.36% have issued a Buy, 9.09% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 77 utility stocks that have issued dividends in the past year, the 3 utility stocks with the highest dividend yields are:

Central Puerto Sa (NYSE:CEPU) has an annual dividend yield of 10.51%, which is 7 percentage points higher than the utility sector average of 3.32%. Central Puerto Sa's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Central Puerto Sa's dividend has shown consistent growth over the last 10 years.

Central Puerto Sa's dividend payout ratio of 0% indicates that its high dividend yield might not be sustainable for the long-term.

Suburban Propane Partners (NYSE:SPH) has an annual dividend yield of 7.67%, which is 4 percentage points higher than the utility sector average of 3.32%. 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 66.7% 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 7.6%, which is 4 percentage points higher than the utility sector average of 3.32%. 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.

Utility stocks were up 0.01% in the last day, and up 3.19% over the last week.

We couldn't find a catalyst for why utility stocks are up.

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:

Enel Chile Sa (NYSE:ENIC) 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.

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 7.4% in the past year. It has overperformed other stocks in the utility sector by 11 percentage points.

Sabesp (NYSE:SBS) 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.

Sabesp 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 SBS a Valuation Rating of "B".

Sabesp's stock has dropped -9.23% in the past year. It has underperformed other stocks in the utility sector by -5 percentage points.

Edison International (NYSE:EIX) 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.

Edison International 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.

Edison International's stock has gained 2.09% in the past year. It has overperformed other stocks in the utility sector by 6 percentage points.

35.9% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 16.1% over the next year.

0% of utility stocks have a Zen Rating of A (Strong Buy), 5% of utility stocks are rated B (Buy), 63% are rated C (Hold), 25% are rated D (Sell), and 7% are rated F (Strong Sell).