Best Utility Stocks to Buy for August 2026

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Best Utility Stocks to Buy for August 2026

Kevin Voigt

MYRGDTEGYMWHSHENCNP

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Key Takeaways

  • The utilities sector includes electric, gas, and water providers that operate in regulated markets.
  • As utility stocks offer predictable revenue, they are seen as defensive holdings in a diversified portfolio.
  • Top utility stocks to buy now include MYR Group, Deutsche Telekom and SOLV Energy.

Utility stocks have long served as a cornerstone for conservative investors seeking income, relative stability, and downside protection. In periods of economic uncertainty, their regulated business models and consistent cash flows tend to stand out. Now, as interest rate expectations evolve and electricity demand accelerates from AI data centers, broader electrification, and renewable energy expansion, the sector is drawing renewed attention in 2026.

Below is a comprehensive guide to the best utility stocks, highlighting high performers, leading dividend payers, potentially undervalued opportunities, and companies with durable long term compounding potential.

Utility Stock Market Overview and Forecast

The utilities sector includes electric, gas, and water providers that operate in regulated markets. Because these companies generate predictable revenue streams, they are often seen as defensive holdings within a diversified portfolio.

In 2026, several forces are shaping the sector:

  • Rising electricity demand from data centers and AI infrastructure.
     
  • Grid modernization and renewable energy investments.
     
  • Interest-rate stabilization after prior tightening cycles.
     
  • Increased focus on ESG and decarbonization initiatives.
     

Utilities have historically outperformed during volatile or slowing markets, though they can lag in strong bull runs when investors favor higher growth sectors. Even so, improving earnings outlooks and capital investment plans are helping narrow that performance gap.

Is Now a Good Time to Invest in Utility Stocks?

Many analysts suggest utilities may benefit if interest rates stabilize or decline. Lower borrowing costs can improve margins because utilities rely heavily on debt financing for infrastructure projects. Meanwhile, steady dividend yields — often ranging between 3% and 6% — remain attractive compared to broader market averages.

Below, we examine and rank leading utility stocks using a blend of Zacks Rank signals, Style Scores, and core fundamental metrics to identify companies that may offer compelling long term opportunities for patient investors.

Company (Ticker)12 Week Price ChangeForward PEPriceProj EPS Growth (1 Year)Projected Sales Growth (1Y)Research
MYR Group (MYRG)-25.13%27.19$337.7761.16%21.83%
Deutsche Telekom (DTEGY)-3.33%12.67$32.3814.71%6.13%Free Research Report: DTEGY
SOLV Energy Inc. (MWH)-19.38%20.37$30.2159.86%52.25%
Shenandoah Telecommunications Co (SHEN)-18.77%NA$13.04-19.72%5.21%
CenterPoint Energy (CNP)-5.46%21.06$40.508.41%5.44%Free Research Report: CNP

*Updated on August 12, 2026.

MYR Group (MYRG)

$337.77 USD +7.83 (2.37%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for MYRG

Premium Research for MYRG

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.94%
2Buy18.22%
3Hold10.27%
4Sell5.79%
5Strong Sell3.20%
S&P50011.55%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Strong Buy 1
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Top 1% (1 out of 246)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Bottom 19% (13 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value A Growth A Momentum B VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$5.25 B (Mid Cap)
  • Projected EPS Growth:59.10%
  • Last Quarter EPS Growth:6.02%
  • Last EPS Surprise:25.30%
  • Next EPS Report Date:Nov. 4, 2026

Our Take:

Reasons to Buy

MYR Group is an electrical contractor serving utility transmission and distribution, as well as commercial and industrial markets. Q2 2026 confirmed healthy demand: revenue and backlog reached records, while T&D sales increased year over year. Utilities continue investing in grid reliability, generation interconnections and load growth, and the July acquisition of Valley Electric and Comet Electric broadens MYR’s capabilities and customer reach.

Potential Risks

Project execution remains the key swing factor. Fixed-price work, labor availability, and cost inflation can quickly put pressure on margins.

Forecast

A Zacks Rank #1 (Strong Buy) signals favorable earnings-estimate revisions. Style Scores of A for Growth and B for Momentum reinforce that message, though Value D points to valuation risk. For 2026-2028, the Price, Consensus and EPS Surprise chart shows consensus EPS moving materially higher across the out-years. Frequent positive surprises, including the latest beat, support further revisions.

Free Research Report: MYRG

Deutsche Telekom (DTEGY)

$32.38 USD -0.46 (-1.40%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for DTEGY

Premium Research for DTEGY

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.94%
2Buy18.22%
3Hold10.27%
4Sell5.79%
5Strong Sell3.20%
S&P50011.55%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending downward Buy 2
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Bottom 17% (203 out of 246)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Bottom 19% (13 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value C Growth C Momentum A VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$164.27 B (Large Cap)
  • Projected EPS Growth:29.65%
  • Last Quarter EPS Growth:8.06%
  • Last EPS Surprise:1.52%
  • Next EPS Report Date:Nov. 12, 2026

Our Take:

Reasons to Buy

Deutsche Telekom is a global telecom operator whose mobile, broadband and fiber networks provide utility-like connectivity across Europe and the United States. Q2 2026 showed continued momentum, with organic revenue and adjusted EBITDA AL rising year over year. Fiber penetration in Germany, resilient European service revenue and T-Mobile US growth should support cash generation.

Potential Risks

Risks center on heavy network investment, intense telecom competition and dependence on T-Mobile US for much of growth and cash generation. Currency swings, spectrum costs and regulation can also pressure returns.

Forecast

A Zacks Rank #1 indicates favorable estimate revisions, while Value A adds support; Growth C is neutral and Momentum F is weak. Across 2026-2028, the chart shows EPS estimates remaining above prior-year levels but becoming less uniformly upward. The latest positive surprise is constructive, though softer price momentum suggests revisions need to keep improving for a stronger setup.

Free Research Report: DTEGY

SOLV Energy Inc. (MWH)

$30.21 USD -0.07 (-0.23%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for MWH

Premium Research for MWH

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.94%
2Buy18.22%
3Hold10.27%
4Sell5.79%
5Strong Sell3.20%
S&P50011.55%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Strong Buy 1
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Top 1% (1 out of 246)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Bottom 19% (13 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value D Growth F Momentum D VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$3.60 B (Mid Cap)
  • Projected EPS Growth:NA
  • Last Quarter EPS Growth:NA
  • Last EPS Surprise:NA
  • Next EPS Report Date:Aug. 13, 2026

Our Take:

Reasons to Buy

SOLV Energy provides engineering, construction, operations and maintenance services for utility-scale power and grid infrastructure. Its latest reported quarter showed sharply higher revenue, gross profit and adjusted EBITDA, while backlog reached $8.2 billion. Rising electricity demand, utility-scale solar and storage additions and the planned Roberson Waite Electric acquisition could broaden SOLV’s exposure to regulated utility infrastructure and support growth beyond current EPC projects.

Potential Risks

Execution risk is substantial. Project delays, fixed-price cost overruns, tariffs, labor constraints, customer concentration and policy shifts affecting renewable development could pressure margins or backlog conversion.

Forecast

A Zacks Rank #2 (Buy) and Value B are constructive, but Growth C and Momentum F show weaker confirmation from earnings quality and trading action. Across 2026-2028, the chart shows a steep upward earnings-estimate curve. With no surprise history yet, the outlook rests more on estimate direction than demonstrated consistency.

Free Research Report: MWH

Shenandoah Telecommunications Co (SHEN)

$13.04 USD -0.33 (-2.47%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for SHEN

Premium Research for SHEN

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.94%
2Buy18.22%
3Hold10.27%
4Sell5.79%
5Strong Sell3.20%
S&P50011.55%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Buy 2
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Bottom 17% (203 out of 246)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Bottom 19% (13 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value C Growth A Momentum B VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$746.32 M (Small Cap)
  • Projected EPS Growth:-19.72%
  • Last Quarter EPS Growth:45.16%
  • Last EPS Surprise:39.29%
  • Next EPS Report Date:Nov. 4, 2026

Our Take:

Reasons to Buy

Shenandoah Telecommunications operates fiber and broadband networks across the eastern United States, giving it utility-like exposure to essential digital infrastructure. Q2 2026 showed Glo Fiber expansion-market revenue rising strongly year over year and adjusted EBITDA improving. The forward case rests on converting network buildout into higher penetration, recurring broadband revenue and better operating leverage as construction winds down. Workforce actions can reduce annual costs from 2027.

Potential Risks

The trade-off is capital intensity. Rapid network expansion requires sustained spending, while higher interest expense, competitive overbuilding and slower customer take-rates could delay returns.

Forecast

A Zacks Rank #2 plus Momentum A supports near-term relative strength, although C for Value and Growth are neutral. The chart shows a long decline giving way to a choppy rebound, while consensus estimates were cut materially before tentative stabilization. Recent positive surprise markers help, but the earnings trend still needs firmer confirmation.

Free Research Report: SHEN

CenterPoint Energy (CNP)

$40.50 USD +0.32 (0.80%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for CNP

Premium Research for CNP

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.94%
2Buy18.22%
3Hold10.27%
4Sell5.79%
5Strong Sell3.20%
S&P50011.55%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Buy 2
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Bottom 36% (158 out of 246)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Bottom 19% (13 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value C Growth D Momentum D VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.29%
  • Market Cap:$26.80 B (Large Cap)
  • Projected EPS Growth:8.52%
  • Last Quarter EPS Growth:-28.57%
  • Last EPS Surprise:8.11%
  • Next EPS Report Date:Oct. 22, 2026

Our Take:

Reasons to Buy

CenterPoint Energy is a regulated electric and natural-gas utility serving Houston and several Midwestern markets. Q2 2026 showed higher adjusted EPS, supported by growth and regulatory recovery. The more compelling forward driver is Houston-area load expansion: CenterPoint increased its 2026-2035 capital plan to $66.7 billion and identified roughly 14 gigawatts of large-load projects expected to qualify for ERCOT study, potentially expanding rate-base growth if projects convert.

Potential Risks

The larger investment program raises financing and execution risk, while regulatory lag, higher interest expense, storm costs and customer-affordability concerns could pressure returns. Large-load demand may materialize slower than expected.

Forecast

A Zacks Rank #2 supports the near-term outlook, although C for Value and Growth are neutral and Momentum D is weaker. For 2026-2028, the chart shows a generally rising consensus path, with out-year estimates stepping higher as the price trend remains strong. Recent surprises are favorable.

Free Research Report: CNP

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter). 

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.94% per year from January 1, 1988, through July 6, 2026.

Selections for Best Utility Stocks are based on the current top ranking stocks based on Zacks Indicator Score, Style Scores and fundamentals. All stocks have a daily trading volume of at least 100,000 shares and have a stock price of at least $5. All information is current as of market open, Aug. 10, 2026.

Guide to Best Utility Stocks: What Are Utility Stocks?

Utility stocks represent companies that provide essential services like electricity, natural gas, and water to residential and commercial customers.

How Do Utility Stocks Work?

Most utilities operate as regulated monopolies within defined geographic areas. State regulators set allowable rates of return, creating predictable revenue streams in exchange for infrastructure investment.

Why Do People Invest in Utility Stocks?

  • Reliable dividend income.
     
  • Lower volatility relative to growth stocks.
     
  • Defensive performance during economic slowdowns.
     

How Often Do Utility Stocks Pay Dividends in a Year?

Most U.S. utility companies pay dividends quarterly (four times per year).

Pros of Utility Stocks

  • Stable cash flow.
     
  • Recession resilience.
     
  • Attractive dividend yields.
     
  • Essential-service demand.
     

Cons of Utility Stocks

  • Interest-rate sensitivity.
     
  • Heavy capital expenditure needs.
     
  • Regulatory risk.
     
  • Slower growth compared to tech sectors.
     

Utility ETFs vs Utility Stocks

Investors can choose individual stocks or diversified ETFs.

Best Utility ETFs

  • Utilities Select Sector SPDR Fund (XLU)
     
  • Vanguard Utilities ETF (VPU)
     
  • iShares U.S. Utilities ETF (IDU)
     

ETFs offer instant diversification, while individual stocks may provide higher upside potential.

How to Choose the Best Utility Stocks

Consider:

  • Dividend yield and payout ratio.
     
  • Earnings and revenue consistency.
     
  • Regulatory environment strength.
     
  • Debt levels and credit ratings.
     
  • Renewable transition strategy.
     
  • Long-term infrastructure growth plans.
     

What Are the Utility Stocks That Are Good Investments?

Electric: Duke Energy (DUK), NextEra Energy (NEE).
Water: American Water Works (AWK).
Gas: Atmos Energy (ATO).
ESG-friendly: Xcel Energy (XEL), NextEra Energy (NEE).

How to Buy Utility Stocks

  1. Open a brokerage account.
     
  2. Research financials and dividend history.
     
  3. Decide between individual stocks or ETFs.
     
  4. Monitor regulatory developments and earnings reports.
     

Tips for Building a Utility Portfolio

  • Blend high-yield and growth utilities.
     
  • Diversify across electric, gas, and water.
     
  • Include at least one ETF for balance.
     
  • Reinvest dividends for compounding.
     

Frequently Asked Questions About Utility Stocks

How Are Utility Dividends Taxed?

Most are qualified dividends taxed at long-term capital gains rates, though investors should verify individual tax situations.

Are Utility Stocks Safe During Recessions?

Historically, utilities have outperformed the broader market during downturns because demand for electricity and water remains steady.

What’s a Good Dividend Yield for Utility Stocks?

According to industry rankings from research firms like Zacks, many electric utilities historically yield between 3% and 5%, higher than the broader S&P 500 average.

Are Utility Stocks Safe for Beginners?

Yes, they are often considered beginner-friendly due to predictable earnings and dividends.

Are Utility Stocks Good for Passive Income?

They are widely used in income-focused portfolios because of consistent quarterly payouts.

How Do Utility Stocks Perform During Market Downturns?

They typically decline less than high-growth sectors but may still experience volatility during severe selloffs.

Is Now a Good Time to Invest in Utility Stocks?

With rising electricity demand and potential interest-rate stabilization, 2025 presents favorable conditions for selective utility investments.

How Do Rising Interest Rates Affect Utility Stocks?

Higher rates can pressure valuations because utilities rely heavily on debt and compete with bond yields for income-focused investors.

Bottom Line

The best utility stocks in March 2025 combine reliable dividends, manageable debt, constructive regulatory environments, and exposure to long-term electrification trends. Whether you prioritize income, growth, or retirement stability, utilities remain a foundational sector for diversified portfolios.

Read more: Check out this today’s list of Best Stocks to Buy Now.

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