Top 3 Picks
2026 Outlook
For 2026, the sector is positioned for mid-single-digit earnings growth driven by grid modernization, renewable capacity additions, and rate base expansion under supportive regulation, with potential tailwinds from lower interest rates boosting valuation multiples.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
CMS Energy Corporation
|
70.3 | $68.46 | $21.7B |
|
2
|
Exelon Corporation
|
69.8 | $43.64 | $45.5B |
|
3
|
NiSource Inc.
|
68.8 | $41.39 | $20.3B |
|
4
|
Consolidated Edison, Inc.
|
66.0 | $107.29 | $35.4B |
|
5
|
Public Service Enterprise Group Incorporated
|
65.3 | $73.70 | $41.2B |
|
6
|
WEC Energy Group, Inc.
|
65.3 | $105.94 | $36.4B |
|
7
|
Duke Energy Corporation
|
64.9 | $120.22 | $95.2B |
|
8
|
Xcel Energy, Inc.
|
64.3 | $75.72 | $47.5B |
|
9
|
Evergy, Inc.
|
64.0 | $81.54 | $17.5B |
|
10
|
Alliant Energy Corporation Common Stock
|
63.8 | $67.97 | $17.3B |
|
11
|
Unitil Corporation
|
63.4 | $53.71 | $845M |
|
12
|
Ameren Corporation
|
58.1 | $106.47 | $28.0B |
|
13
|
ALLETE, Inc.
|
56.4 | $67.92 | $3.9B |
|
14
|
Avista Corporation
|
53.6 | $37.55 | $3.0B |
|
15
|
PG&E Corporation
|
53.6 | $14.30 | $34.4B |
In-Depth Analysis: Top Utilities Stocks
CMS
CMS Energy is an energy holding company with three principal businesses. Its regulated utility, Consumers Energy, provides regulated natural gas service to 1.8 million customers and electric service to 1.9 million customers in Michigan. NorthStar Clean Energy, formerly CMS Enterprises, is engaged in wholesale power generation, including contracted renewable energy. CMS sold EnerBank in October 2021.
CMS Energy matters in the Utilities sector as the parent of Consumers Energy, which delivers electric service to 1.9 million and natural gas to 1.8 million customers across Michigan, anchoring regulated infrastructure in the Midwest.
CMS posts an 11.6% profit margin and 9.2% ROE with a P/E of 20.5, reflecting steady regulated returns, while -0.5% revenue growth signals modest top-line pressure offset by cost discipline.
Investors should consider CMS in 2026 for its large captive Michigan customer base that supports recurring regulated cash flows and a 70.3/100 Tradestie Score. NorthStar Clean Energy expansion adds upside from decarbonization mandates without exposing earnings to commodity volatility. At 20.5x earnings, the stock offers reasonable entry for a utility with 9.2% ROE and predictable dividend growth.
EXC
Exelon serves approximately 10 million power and gas customers at its six regulated utilities in Illinois, Pennsylvania, Maryland, New Jersey, Delaware, and Washington, D.C.
Exelon matters in the Utilities sector as a leading regulated provider serving 10 million power and gas customers across six states including Illinois, Pennsylvania, Maryland, New Jersey, Delaware, and Washington, D.C.
Exelon's 11.0% profit margin and 9.7% ROE indicate stable financial health characteristic of regulated utilities, while 9.9% revenue growth reflects solid expansion.
Investors should consider EXC in 2026 given its 9.9% revenue growth and P/E of 16.4, which support reasonable valuation amid rising energy demand. The diversified base of six regulated utilities provides earnings stability and resilience to regulatory shifts. A Tradestie Score of 69.8/100 further signals moderate upside potential from operational scale.
NI
NiSource is one of the nation's largest natural gas distribution companies with 3.2 million customers in Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia. NiSource's electric utility transmits and distributes electricity in northern Indiana to about 500,000 customers. The regulated electric utility also owns more than 3,000 megawatts of generation capacity, including coal, natural gas, and renewable energy.
NiSource ranks among the largest U.S. natural gas distributors, serving 3.2 million customers across Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and Virginia while delivering electricity to 500,000 customers in northern Indiana, anchoring regulated energy infrastructure in the Utilities sector.
NiSource posts a 13.2% profit margin alongside 8.6% ROE and 4.6% revenue growth, reflecting stable regulated returns, while its 21.9 P/E ratio aligns with sector norms for predictable cash flows.
NiSource offers investors exposure to regulated rate-base growth and rising natural gas demand through 2026, backed by its 3.2 million-customer footprint and 68.8/100 Tradestie Score. The 4.6% revenue trajectory and 13.2% margins support dividend sustainability in a low-volatility utility environment. Expanding infrastructure investments in its six-state territory position the stock for steady earnings accretion as energy transition policies favor gas distribution.
ED
Con Ed is a holding company for Consolidated Edison of New York, or CECONY, and Orange & Rockland, or O&R. These utilities provide steam, natural gas, and electricity to customers in southeastern New York—including New York City—and small parts of New Jersey. The two utilities generate nearly all of Con Ed's earnings following the sale of its clean energy business …
Consolidated Edison operates as a major regulated utility in the Utilities sector, delivering electricity, natural gas, and steam to millions of customers across the densely populated New York City metro area and parts of New Jersey through its CECONY and O&R subsidiaries.
Con Ed reports a 12.5% profit margin alongside 13.2% revenue growth and a 9.0% ROE, reflecting stable earnings typical of regulated utilities, while its 17.7 P/E ratio indicates moderate valuation relative to sector peers.
Investors should consider ED in 2026 given its 13.2% revenue growth and 12.5% profit margin, which support consistent cash flows from essential services in a high-demand urban market. The 66.0/100 Tradestie Score and 17.7 P/E provide a reasonable entry point for a low-volatility utility with exposure to infrastructure spending and population-driven demand. Its regulated operations in New York position it for steady returns amid rising energy needs.
PEG
Public Service Enterprise Group is the holding company for a regulated utility (PSE&G) and PSEG Power, which owns all or a share of three nuclear plans and clean energy projects. PSE&G provides regulated gas and electricity delivery services in New Jersey to a combined 4.3 million customers. Public Service Enterprise Group also operates the Long Island Power Authority system. In …
PEG matters in the Utilities sector as the holding company for PSE&G, which delivers gas and electricity to 4.3 million customers in New Jersey, and PSEG Power, which owns nuclear plants and clean energy projects supporting the sector's transition.
PEG reports a 16.0% profit margin and 11.8% ROE, indicating solid earnings efficiency, though offset by -8.9% revenue growth and a P/E of 18.3 that reflects measured valuation for its regulated and power operations.
PEG's regulated PSE&G segment provides stable cash flows serving 4.3 million customers, while PSEG Power's nuclear and clean energy assets position it for growth in the energy transition by 2026. The 16.0% profit margin and 11.8% ROE support consistent returns, with a P/E of 18.3 and Tradestie Score of 65.3/100 offering an attractive entry point relative to sector multiples.
WEC
WEC Energy Group's electric and gas utility businesses serve electric and gas customers in Illinois, Michigan, Minnesota, and Wisconsin service territories. The company also owns a 60% stake in American Transmission Co. WEC's asset mix is approximately 49% electric generation and distribution, 32% gas distribution, 10% electric transmission, 7% unregulated renewable energy and 2% LNG distribution and generation.
WEC Energy Group delivers essential electric and gas utility services to customers across Illinois, Michigan, Minnesota, and Wisconsin while holding a 60% stake in American Transmission Co., anchoring its role in Midwest energy infrastructure with an asset mix of 49% electric generation and distribution.
WEC's 16.7% profit margin and 12.0% ROE reflect above-average returns for a capital-intensive utility, paired with steady 2.6% revenue growth and a 20.5 P/E ratio that supports sustainable earnings in a regulated environment.
WEC offers defensive appeal for 2026 through its regulated rate base expansion and transmission ownership, which can drive earnings growth amid rising electrification demand in its four-state footprint. The 65.3/100 Tradestie Score and 12.0% ROE position the stock for potential multiple expansion if revenue growth accelerates beyond 2.6% via infrastructure investments. Its 16.7% margins provide a buffer for dividend increases in a higher-interest-rate setting.
DUK
Duke Energy is one of the largest US utilities, with regulated utilities in the Carolinas, Indiana, Florida, Ohio, and Kentucky that deliver electricity to more than 8 million customers. Its natural gas utilities serve more than 1.6 million customers.
Duke Energy is one of the largest US utilities, operating regulated electric utilities across the Carolinas, Florida, Indiana, Ohio, and Kentucky that serve more than 8 million customers and natural gas utilities serving over 1.6 million customers.
Duke Energy reports a 16.0% profit margin and 9.9% ROE, indicating solid profitability for a regulated utility, while 1.1% revenue growth and an 18.1 P/E reflect modest expansion and a reasonable valuation.
Duke Energy's large regulated asset base across five states supports stable earnings and rate base growth into 2026, particularly in high-demand regions like Florida and the Carolinas. Its 16.0% profit margin and Tradestie Score of 64.9/100 provide a foundation for consistent cash flows and defensive positioning. At a P/E of 18.1, the stock offers investors a balanced entry point for long-term utility exposure amid infrastructure spending.
XEL
Xcel Energy manages utilities serving 3.8 million electric customers and 2.2 million natural gas customers in eight states. Its utilities are Northern States Power, which serves customers in Minnesota, North Dakota, South Dakota, Wisconsin, and Michigan; Public Service Company of Colorado; and Southwestern Public Service Company, which serves customers in Texas and New Mexico. It is one of the largest …
Xcel Energy matters in the Utilities sector as a major provider serving 3.8 million electric and 2.2 million natural gas customers across eight states via subsidiaries including Northern States Power and Public Service Company of Colorado.
Xcel reports a 15.3% profit margin and 9.9% ROE, reflecting stable earnings in regulated utilities, offset by -5.1% revenue growth and a 20.7 P/E that indicates moderate valuation.
Investors should consider XEL in 2026 for its 15.3% margins and defensive customer base of 6 million total, which support resilience despite -5.1% revenue contraction. The 9.9% ROE and 64.3/100 Tradestie Score suggest potential for steady returns as utilities benefit from rate base expansion. At 20.7 P/E, the stock offers entry for income-focused portfolios seeking sector stability.
EVRG
Evergy is a regulated electric utility serving eastern Kansas and western Missouri. Major operating subsidiaries include Evergy Metro, Evergy Kansas Central, Evergy Missouri West, and Evergy Transmission Co. The utility has a combined rate base of approximately $20 billion, about half in Kansas and the rest split between Missouri and federal jurisdiction. Evergy is one of the largest wind energy …
Evergy, Inc. operates as a major regulated electric utility in the Utilities sector with a $20 billion rate base split across Kansas and Missouri, serving customers through subsidiaries including Evergy Metro, Evergy Kansas Central, Evergy Missouri West, and Evergy Transmission Co.
Evergy reports a 15.2% profit margin alongside 4.4% revenue growth and a 9.2% ROE, reflecting typical regulated utility returns supported by stable rate recovery mechanisms, while its 20.8 P/E indicates measured valuation against earnings.
Evergy's $20 billion rate base provides a foundation for earnings growth through infrastructure investments and potential rate increases in Kansas and Missouri. Its 4.4% revenue growth and 15.2% profit margin support cash flow stability amid rising electricity demand. With a Tradestie Score of 64.0, the stock offers defensive exposure for 2026 as utilities benefit from grid modernization and regional economic expansion.
LNT
Alliant Energy is the parent of two regulated utilities, Interstate Power and Light and Wisconsin Power and Light. Together, IPL and WPL serve nearly 1 million electric customers and 425,000 natural gas-only customers. Both subsidiaries engage in the generation and distribution of electricity and the distribution and transportation of natural gas. Alliant also owns a 16% interest in American Transmission …
Alliant Energy, through subsidiaries IPL and WPL, delivers electricity and natural gas to nearly 1 million electric customers and 425,000 gas-only customers, positioning it as a key provider of regulated energy infrastructure in the Midwest utilities sector.
Alliant Energy reports an 18.4% profit margin and 11.1% ROE, reflecting efficient operations in a regulated environment, while 1.0% revenue growth and a 21.5 P/E ratio indicate stable but limited expansion.
Investors may consider LNT in 2026 due to its 18.4% profit margin and 11.1% ROE supporting consistent returns in regulated utilities, combined with a 63.8/100 Tradestie Score and essential customer base of nearly 1.4 million that benefits from steady energy demand and potential rate adjustments.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.