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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:

Korea Electric Power (NYSE:KEP) 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 Korea Electric Power (NYSE:KEP) is: Value: A, Growth: B, Momentum: A, Sentiment: C, Safety: C, Financials: C, and AI: C.

Korea Electric Power (NYSE:KEP) has a Due Diligence Score of 16, which is -16 points lower than the utility sector average of 32. Although this number is below the industry average, our proven quant model rates KEP as a "A".It passed 6 out of 38 due diligence checks and has weak fundamentals. Korea Electric Power has seen its stock return 60.29% over the past year, overperforming other utility stocks by 40 percentage points.

Genie Energy (NYSE:GNE) 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 Genie Energy (NYSE:GNE) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: B, Financials: C, and AI: C.

Genie Energy (NYSE:GNE) has a Due Diligence Score of 40, which is 8 points higher than the utility sector average of 32. It passed 14 out of 38 due diligence checks and has average fundamentals. Genie Energy has seen its stock lose -11.47% over the past year, underperforming other utility stocks by -31 percentage points.

Ugi (NYSE:UGI) 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 Ugi (NYSE:UGI) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: B.

Ugi (NYSE:UGI) has a Due Diligence Score of 44, which is 12 points higher than the utility sector average of 32. It passed 15 out of 38 due diligence checks and has strong fundamentals. Ugi has seen its stock return 37.95% over the past year, overperforming other utility stocks by 18 percentage points.

Ugi has an average 1 year price target of $39.00, an upside of 18.69% from Ugi's current stock price of $32.86.

Ugi stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Ugi, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a Hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 68 utility stocks that have issued dividends in the past year, the 3 utility stocks with the highest dividend yields are:

Clearway Energy (NYSE:CWEN) has an annual dividend yield of 6.23%, which is 3 percentage points higher than the utility sector average of 2.87%. 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 262.9% indicates that its high dividend yield might not be sustainable for the long-term.

Avista (NYSE:AVA) has an annual dividend yield of 5.4%, which is 3 percentage points higher than the utility sector average of 2.87%. 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 86.5% indicates that its high dividend yield is sustainable for the long-term.

Suburban Propane Partners (NYSE:SPH) has an annual dividend yield of 5.19%, which is 2 percentage points higher than the utility sector average of 2.87%. 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 67.2% indicates that its high dividend yield is sustainable for the long-term.

Utility stocks were up 0.12% in the last day, and down -0.27% 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:

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 57, which is 30 points higher than the utility sector average of 27. It passed 4 out of 7 valuation due diligence checks.

Korea Electric Power's stock has gained 60.29% in the past year. It has overperformed other stocks in the utility sector by 40 percentage points.

Aes (NYSE:AES) 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.

Aes has a valuation score of 57, which is 30 points higher than the utility sector average of 27. It passed 4 out of 7 valuation due diligence checks.

Aes's stock has dropped -34.98% in the past year. It has underperformed other stocks in the utility sector by -55 percentage points.

Edenor (NYSE:EDN) 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.

Edenor 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.

Edenor's stock has dropped -33.05% in the past year. It has underperformed other stocks in the utility sector by -53 percentage points.

35.9% of utility stocks rated by analysts are a buy right now. On average, analysts expect utility stocks to rise by 7.93% over the next year.

1.02% of utility stocks have a Zen Rating of A (Strong Buy), 2.04% of utility stocks are rated B (Buy), 70.41% are rated C (Hold), 17.35% are rated D (Sell), and 9.18% are rated F (Strong Sell).