Best Utility Stocks this January 2026

Constellation Energy (CEG) stands out as a top growth utility, leveraging nuclear power agreements to support major tech players like Microsoft and Meta. With a solid year-to-date return of 20.28% and an impressive five-year return of 699.67%, CEG is an attractive option for investors seeking robust performance and emissions-free energy solutions. Analysts maintain a median 12-month price target of $404.00, reflecting a consensus rating of Buy among 12 analysts, indicating strong confidence in its continued upward trajectory.

CEG is currently trading near its 52-week high, with a recent increase of $19.98, representing a 6.19% rise.

CEG has a consensus rating of Buy from 12 analysts, with 25% recommending Strong Buy, 50% recommending Buy, and 25% suggesting Hold.

Constellation Energy's stock has performed exceptionally well, rising nearly 50% over the past year.

Vistra Corp (VST) stands out as a strong investment choice, particularly with its impressive 700.46% return over the past five years. The company is well-positioned to benefit from the increasing demand for electricity, supported by a diversified power generation portfolio. Analysts maintain a positive outlook, with a median price target of $238.00, indicating that the stock is currently undervalued by 57.5%, making it an attractive option for investors seeking growth in the utility sector.

Yes, VST shows potential for further price increases, supported by a buy signal from the MACD and rising trading volume.

No, VST is currently undervalued by 57.5% according to our Discounted Cash Flow analysis.

VST's recent price increase is attributed to its diversified power generation portfolio, recent acquisitions, and increased demand for electricity in the U.S.

NextEra Energy (NEE) stands out as a highly rated utility, boasting a consistent dividend yield of 2.71% and a remarkable history of increasing payouts for 32 consecutive years. With significant partnerships supplying gigawatt-scale solar energy to major companies like Meta and Google, plus a long-term nuclear deal with Alphabet, NEE is well-positioned for growth. Analysts are optimistic, with a consensus rating of Buy and a median 12-month price target of $89.50, reflecting confidence in its strategic focus on renewable energy and stable revenue from Florida Power & Light.

NextEra Energy (NEE) has a consensus rating of Buy from 11 analysts, with 27% recommending a Strong Buy, 45% a Buy, and 27% suggesting Hold.

NEE has a strong dividend safety record, having paid and increased its dividend for 32 consecutive years.

NextEra Energy is regarded as both a stable utility and a growth stock, leveraging revenue from Florida Power & Light to invest in renewable energy projects.

NEE's stock price is rising due to solid performance and an expanding customer base, driven by improving economic conditions in Florida.

Entergy (ETR) focuses on power production in the Deep South, catering to strong regional demand while building gas plants for Meta's AI data center. With a solid dividend yield of 2.58% and impressive 1-year and 5-year returns of 21.32% and 101.73% respectively, it presents a compelling opportunity for long-term growth, supported by a management outlook of over 8% growth through 2028.

Entergy's total shareholder return over the past year is 28.23%, and 139.15% over five years, indicating strong long-term performance despite a flat recent share price.

Entergy's management has increased its long-term growth guidance to over 8% through 2028, up from the previous estimate of 6%-8%.

Key risks for ETR include potential infrastructure damage from severe weather, regulatory penalties, and liabilities related to its nuclear operations.

Entergy appears fairly valued with a Value Score of C, suggesting it is a neutral choice for value investors, while its Growth Score of C indicates moderate growth potential.