Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Utilities Sector Analysis

UpdatedJan 23, 2026
DataAggregated Company Financials
Companies114
  • 7D-2.0%
  • 3M-6.3%
  • 1Y9.9%
  • YTD-0.9%

The Utilities industry has been flat over the last week, but Constellation Energy has lost 11%. As for the the longer term, the industry is up 11% over the past 12 months. Looking forward, earnings are forecast to grow by 11% annually.

Sector Valuation and Performance

Has the U.S. Utilities Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 23 Jan 2026US$1.6tUS$556.5bUS$68.6b20.5x22.7x2.8x
Sun, 21 Dec 2025US$1.5tUS$556.5bUS$68.5b19.3x22x2.7x
Tue, 18 Nov 2025US$1.6tUS$559.6bUS$68.1b20.7x23.3x2.8x
Thu, 16 Oct 2025US$1.6tUS$549.9bUS$63.6b21.6x25.7x3x
Sat, 13 Sep 2025US$1.5tUS$549.2bUS$63.7b20.5x23.6x2.7x
Mon, 11 Aug 2025US$1.5tUS$548.2bUS$63.6b20.9x23.9x2.8x
Wed, 09 Jul 2025US$1.4tUS$540.7bUS$63.8b20.4x22.7x2.7x
Fri, 06 Jun 2025US$1.4tUS$540.1bUS$64.0b20.5x22.1x2.6x
Sun, 04 May 2025US$1.4tUS$534.3bUS$64.5b21.1x21.7x2.6x
Tue, 01 Apr 2025US$1.4tUS$526.8bUS$63.5b21x21.6x2.6x
Thu, 27 Feb 2025US$1.4tUS$525.7bUS$61.9b20.7x22.4x2.6x
Sat, 25 Jan 2025US$1.4tUS$528.1bUS$58.6b19.8x23.4x2.6x
Mon, 23 Dec 2024US$1.3tUS$532.1bUS$61.1b19.8x21.7x2.5x
Wed, 20 Nov 2024US$1.4tUS$533.5bUS$61.5b20.6x22.7x2.6x
Fri, 18 Oct 2024US$1.4tUS$522.9bUS$60.5b20.1x23.6x2.7x
Sun, 15 Sep 2024US$1.4tUS$522.9bUS$60.5b20.1x22.5x2.6x
Tue, 13 Aug 2024US$1.3tUS$522.9bUS$60.7b19.3x21.2x2.5x
Thu, 11 Jul 2024US$1.2tUS$517.6bUS$60.4b18.1x19.9x2.3x
Sat, 08 Jun 2024US$1.2tUS$518.2bUS$60.4b17.9x20.3x2.4x
Mon, 06 May 2024US$1.2tUS$524.8bUS$58.2b18.8x20.6x2.3x
Wed, 03 Apr 2024US$1.2tUS$561.5bUS$56.9b18.5x20.8x2.1x
Fri, 01 Mar 2024US$1.1tUS$528.7bUS$57.9b17.5x18.7x2x
Sun, 28 Jan 2024US$1.1tUS$544.0bUS$53.2b18.1x20.3x2x
Tue, 26 Dec 2023US$1.1tUS$543.9bUS$53.5b19.2x20.7x2x
Thu, 23 Nov 2023US$1.1tUS$544.4bUS$53.5b18.7x20.2x2x
Sat, 21 Oct 2023US$1.0tUS$549.7bUS$50.8b18.5x19.8x1.8x
Mon, 18 Sep 2023US$1.1tUS$549.8bUS$50.8b20.2x22.1x2x
Wed, 16 Aug 2023US$1.1tUS$549.3bUS$49.6b20.2x22.1x2x
Fri, 14 Jul 2023US$1.2tUS$551.7bUS$45.7b21x25.6x2.1x
Sun, 11 Jun 2023US$1.1tUS$549.3bUS$46.6b20.4x24.7x2.1x
Tue, 09 May 2023US$1.2tUS$546.9bUS$45.5b20.8x26.2x2.2x
Thu, 06 Apr 2023US$1.2tUS$532.0bUS$45.0b21.4x26.6x2.3x
Sat, 04 Mar 2023US$1.1tUS$532.0bUS$45.0b20.2x25.4x2.2x
Mon, 30 Jan 2023US$1.2tUS$533.3bUS$50.5b21.2x23.6x2.2x
Price to Earnings Ratio

23.6x


Total Market Cap: US$1.2tTotal Earnings: US$50.5bTotal Revenue: US$533.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Utilities Sector Price to Earnings3Y Average 22.4x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Utilities industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 22.4x.
  • The 3-year average PS ratio of 2.4x is lower than the industry's current PS ratio of 2.8x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 11% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

Which industries have driven the changes within the U.S. Utilities sector?

US Market-0.28%
Utilities-2.04%
Gas Utilities-0.57%
Other Utilities-1.07%
Water Utilities-1.39%
Electric Utilities-2.06%
Renewable Energy-6.15%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry, which is trading close to its 3-year average PE ratio of 75.6x.
    • Analysts are expecting annual earnings growth of 21.7%, which is higher than its past year's earnings decline of 3.5% per year.
  • Investors are most pessimistic about the Gas Utilities industry, which is trading below its 3-year average of 30.5x.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is better than its past earnings decline of 3.5% per year.
  • In contrast, the Water Utilities industry is expected to see its earnings grow by 8.7% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
NEE NextEra EnergyUS$85.073.5%
+US$6.0b		22.9%PE27.2x
PPL PPLUS$36.632.6%
+US$680.6m		11.9%PE24.9x
EXC ExelonUS$44.601.0%
+US$454.6m		13.7%PE16x
ORA Ormat TechnologiesUS$123.006.1%
+US$430.9m		87.7%PE56.1x
WEC WEC Energy GroupUS$109.351.1%
+US$387.1m		12.4%PE21x

Latest News

WEC
US$109.35
WEC Energy Group
7D
1.1%
1Y
12.4%
CEG
US$287.35
Constellation Energy
7D
-15.8%
1Y
-17.0%
PPL
US$36.63
PPL
7D
2.6%
1Y
11.9%
SRE
US$85.75
Sempra
7D
-6.4%
1Y
3.6%
ORA
US$123.00
Ormat Technologies
7D
6.1%
1Y
87.7%

ORA: Geothermal Expansion And Data Center Demand Will Support Balanced Medium Term Outlook

Analysts have raised their fair value estimate for Ormat Technologies from US$121.40 to US$123.70, reflecting updated views on discount rates, revenue growth, margins, and future P/E assumptions. What's in the News Ormat was awarded the Telaga Ranu Geothermal Working Area in Halmahera, North Maluku, after a competitive tender with four qualified bidders, securing long term exploration and development rights for a resource that the Indonesian Electricity Supply Plan cites as having potential to support up to 40MW of baseload geothermal capacity and contributing to the country's diesel replacement and energy transition goals (Key Developments).
AEP
US$117.18
American Electric Power Company
7D
-1.9%
1Y
20.2%
VST
US$160.36
Vistra
7D
-11.0%
1Y
-16.4%

VST: Long Term Meta Nuclear Contracts Will Support Data Center Power Demand

Analysts nudged their price target on Vistra up to $293 from $288 as they factor in stronger contracted growth from long term Meta power agreements and updated expectations for revenue, margins and future P/E multiples across the independent power producer group. Analyst Commentary Bullish analysts are largely framing the latest Vistra moves, including long term power agreements with Meta and recent generation acquisitions, as supportive for the company’s valuation and earnings power within the independent power producer peer group.
XEL
US$75.86
Xcel Energy
7D
0.7%
1Y
14.8%
SO
US$87.51
Southern
7D
-1.4%
1Y
6.4%
FE
US$47.05
FirstEnergy
7D
1.0%
1Y
20.6%
NEE
US$85.07
NextEra Energy
7D
3.5%
1Y
22.9%
PCG
US$15.10
PG&E
7D
-4.3%
1Y
-7.0%

PCG: Data Center Demand And Grid Investment Cycle Will Drive Future Upside

PG&E's consensus analyst price target has recently shifted higher into the low $20s, with analysts pointing to sector-wide target resets, TD's view of a significant long term grid investment cycle tied to data center demand, and expectations that PG&E's current valuation does not fully reflect these themes, even as California cost of capital debates continue. Analyst Commentary Recent research highlights a split view on PG&E, with some analysts focused on long term grid investment tied to data center demand and others emphasizing regulatory risk around California's cost of capital.
NRG
US$151.09
NRG Energy
7D
-4.7%
1Y
36.7%

NRG: Data Center Pipelines And Buybacks Will Drive Future Upside

Analysts have slightly raised their fair value estimate for NRG Energy to about $201.96 from $201.58 and increased their price target to $145, reflecting updated views on long term profit margins and future P/E assumptions across regulated and diversified utilities and IPPs. Analyst Commentary Recent Street research around NRG Energy highlights a mix of optimism and caution as analysts update their views across the broader Regulated and Diversified Utilities and IPP group. Bullish Takeaways Bullish analysts are comfortable reaffirming a neutral stance while still lifting their price targets to US$145, which signals confidence that updated P/E assumptions and margin expectations support a higher fair value anchor for the stock.
ES
US$70.45
Eversource Energy
7D
1.1%
1Y
25.3%

ES: Reaffirmed 2025 EPS Guidance Will Support A Higher Future Earnings Multiple

Analysts have trimmed their price target on Eversource Energy by about $0.89, reflecting slightly higher discount rate assumptions, a modest adjustment to projected revenue growth, and a small tweak to expected profit margin and future P/E levels. What's in the News Eversource Energy has scheduled a board meeting for December 3, 2025, with an agenda that includes considering the election of Warren Robert Mudge as a Trustee (Board Meeting).
TLN
US$379.86
Talen Energy
7D
-9.4%
1Y
53.7%

TLN: Data Center Demand And Caithness Deal Will Reshape Earnings Power

Analysts have lifted their blended price target on Talen Energy to about US$557 from roughly US$399, citing updated assumptions that reflect recent price target increases across the Street, the planned closing of the Caithness transaction by late 2025, higher forward power prices in PJM, and growing attention on Talen's role in supporting data center demand. Analyst Commentary Bullish analysts are framing the recent set of price target moves on Talen Energy as a re-marking of the stock to reflect updated deal assumptions, power market inputs in PJM, and rising visibility into data center related demand.
EXC
US$44.60
Exelon
7D
1.0%
1Y
13.7%

EXC: Pennsylvania Step Up And Wires Only Profile Should Support Upside

Analysts have lifted their average price target for Exelon by a little over $0.10 per share, citing a combination of higher P/E assumptions, slightly stronger modeled revenue growth, and ongoing regulatory visibility. These factors are partially offset by modestly softer profit margin expectations and affordability concerns.