Best Utility Stocks to Buy for April 2026

Best Utility Stocks to Buy for April 2026

Kevin Voigt

PAMHEVIVMYRGBEP

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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 Pampa Energía, Hawaiian Electric Industries and Telefônica Brasil.

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)Report
Pampa Energia (PAM)-6.71%9.61$83.1624.15%24.91%
Hawaiian Electric Industries (HE)-3.99%14.31$15.5023.26%2.82%
Telefonica Brasil (VIV)9.22%17.54$15.9533.09%12.80%
MYR Group (MYRG)32.40%36.07$341.3822.62%9.80%
Brookfield Renewable Partners (BEP)14.65%NA$33.60-246.40%15.00%

*Updated on April 23, 2026.

Pampa Energia (PAM)

$83.16 USD +0.50 (0.61%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for PAM

Premium Research for PAM

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 Buy23.93%
2Buy18.12%
3Hold10.10%
4Sell5.65%
5Strong Sell2.94%
S&P50011.36%

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 39% (96 out of 244)
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

Top 31% (5 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

B Value B Growth D 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:$4.40 B (Mid Cap)
  • Projected EPS Growth:24.10%
  • Last Quarter EPS Growth:614.29%
  • Last EPS Surprise:361.54%
  • Next EPS Report date:May 11, 2026

Our Take:

Reasons to Buy

Pampa Energía is an Argentina-based power generator and transmission stakeholder, giving it meaningful utility exposure alongside upstream gas exposure. In Q4 2025, management highlighted record hydrocarbon production and solid fleet availability, supporting cash generation and balance-sheet flexibility as Argentina’s energy pricing normalizes. With both regulated and merchant power touchpoints, Pampa can benefit if tariff updates and contract repricing gradually improve returns.

Potential Risks

Policy and FX risk remain central: tariff decisions, export rules, capital controls and election-driven shifts can quickly change realized pricing. Commodity swings can pressure funding for capex.

Forecast

A Zacks Rank #1 (Strong Buy), with Style Scores of B for Value and Momentum and C for Growth, suggests that revisions and tape action are aligned. The Price, Consensus & EPS Surprise chart shows 2026-2027 EPS consensus easing from earlier highs, with surprises mixed lately after a long beat run.

Free Research Report: PAM

Hawaiian Electric Industries (HE)

$15.50 USD +0.33 (2.18%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for HE

Premium Research for HE

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 Buy23.93%
2Buy18.12%
3Hold10.10%
4Sell5.65%
5Strong Sell2.94%
S&P50011.36%

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 39% (96 out of 244)
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

Top 31% (5 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

B Value F Growth F Momentum F 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

NA
  • Market Cap:$2.73 B (Mid Cap)
  • Projected EPS Growth:23.26%
  • Last Quarter EPS Growth:26.32%
  • Last EPS Surprise:NA
  • Next EPS Report date:May 8, 2026

Our Take:

Reasons to Buy

Hawaiian Electric is a regulated utility serving Hawai‘i, so its value is tied to rate-based investment in grid hardening and renewables. In Q4 2025, HEI witnessed steadier utility operations and cost controls even as higher interest expense weighed, underscoring that the operating business is functioning while liabilities are worked through. A clearer path on wildfire-related financing and regulatory visibility could allow the stock to re-rate from distressed levels.

Potential Risks

Maui wildfire litigation and settlement funding remain the dominant overhang, including court approvals, insurance recoveries and adverse rulings. Higher rates lift financing costs, and regulators could pressure allowed returns or impose tougher oversight.

Forecast

A Zacks Rank #1 and Value B contrast with F for Growth and Momentum, signaling improving estimate direction but weak trend support. On the chart, 2026-2027 EPS expectations sit in a tight band and have recently firmed, while surprises are uneven.

Free Research Report: HE

Telefonica Brasil (VIV)

$15.95 USD +0.08 (0.50%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for VIV

Premium Research for VIV

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 Buy23.93%
2Buy18.12%
3Hold10.10%
4Sell5.65%
5Strong Sell2.94%
S&P50011.36%

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

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 39% (96 out of 244)
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

Top 31% (5 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 B 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

32.70%
  • Market Cap:$26.66 B (Large Cap)
  • Projected EPS Growth:33.82%
  • Last Quarter EPS Growth:0.00%
  • Last EPS Surprise:29.41%
  • Next EPS Report date:May 11, 2026

Our Take:

Reasons to Buy

Telefônica Brasil or Vivo runs Brazil’s mobile and fiber networks, a utility-like connectivity franchise with recurring service revenue. In Q4 2025, the company emphasized resilient service growth and profitability progress as postpaid and FTTH scale, helping sustain shareholder returns, including a roughly 1.5% yield. With fiber expansion and higher-value digital services, Vivo can keep compounding cash generation even in a choppy macro backdrop.

Potential Risks

Competition can force pricing concessions or higher retention spend, and the Brazilian Real can swing reported ADR results. Heavy 5G and fiber capex can pressure free cash flow.

Forecast

A Zacks Rank #1 with C for Value and Growth and A for Momentum leans on price strength plus supportive revisions. The chart shows 2026-2027 EPS consensus trending higher overall despite noise, with several recent beats after a notable miss, suggesting momentum can persist if estimates keep stair-stepping up.

Free Research Report: VIV

MYR Group (MYRG)

$341.38 USD +8.34 (2.50%)

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 Buy23.93%
2Buy18.12%
3Hold10.10%
4Sell5.65%
5Strong Sell2.94%
S&P50011.36%

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 3% (8 out of 244)
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

Top 31% (5 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

D Value A Growth B 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

8.87%
  • Market Cap:$5.12 B (Mid Cap)
  • Projected EPS Growth:22.58%
  • Last Quarter EPS Growth:13.66%
  • Last EPS Surprise:34.68%
  • Next EPS Report date:April 29, 2026

Our Take:

Reasons to Buy

MYR Group builds transmission, distribution and substation projects, making it a direct beneficiary of utility grid spending. In Q4 2025, revenue rebounded and management pointed to better project execution versus the prior year’s margin pressure, reinforcing confidence that electrification-driven demand is translating into profitable work. A healthy backlog and exposure to interconnects, storm work and capacity upgrades provide multi-year visibility as utilities modernize aging networks.

Potential Risks

MYRG's results can become lumpy as weather, labor availability and fixed-price execution swing margins, and any pause in utility capex or permitting delays can slow its backlog conversion.

Forecast

A Zacks Rank #1, with Growth A, Momentum B and Value D, signals upward revisions are the key support. On the chart, the 2026-2027 EPS consensus is rising and has been revised higher recently, with mostly positive surprises after one sharp miss.

Free Research Report: MYRG

Brookfield Renewable Partners (BEP)

$33.60 USD +0.35 (1.05%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for BEP

Premium Research for BEP

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 Buy23.93%
2Buy18.12%
3Hold10.10%
4Sell5.65%
5Strong Sell2.94%
S&P50011.36%

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 Hold 3
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 39% (96 out of 244)
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

Top 31% (5 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 F Growth F Momentum F 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

-35.87%
  • Market Cap:$10.49 B (Large Cap)
  • Projected EPS Growth:-232.00%
  • Last Quarter EPS Growth:334.78%
  • Last EPS Surprise:258.82%
  • Next EPS Report date:May 1, 2026

Our Take:

Reasons to Buy

Brookfield Renewable owns hydro, wind, solar and storage assets, generating utility-like contracted cash flows while developing new capacity. In Q4 2025, Brookfield reported higher funds from operations and again lifted its distribution, supporting a roughly 4.5% yield and reinforcing the model’s durability through volatile power markets. Its scale and capital-recycling approach can keep funding the pipeline and long-dated corporate demand for clean energy.

Potential Risks

Higher interest rates can pressure valuation and raise financing costs, and hydrology or wind variability can move results quarter to quarter. Large development programs add execution risk, and the partnership structure brings tax complexity.

Forecast

A Zacks Rank #1 sits alongside D for Value and Momentum and F for Growth, implying revisions are improving, but factors are mixed. The chart shows 2026-2027 EPS expectations rebounding from a trough but still choppy, with a recent shift toward beats after frequent misses.

Free Research Report: BEP

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 +23.62% per year from January, 1988, through June 2, 2025.

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, April 20, 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.

 

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