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

U.S. Utilities Sector Analysis

UpdatedDec 31, 2025
DataAggregated Company Financials
Companies115
  • 7D0.5%
  • 3M-2.6%
  • 1Y14.4%
  • YTD13.6%

The Utilities industry has been flat over the last week, but Oklo has lost 13%. As for the the longer term, the industry is up 14% over the past 12 months. As for the next few years, earnings are expected to grow by 12% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 31 Dec 2025US$1.5tUS$556.5bUS$68.6b19.5x22.3x2.7x
Fri, 28 Nov 2025US$1.6tUS$558.0bUS$68.7b20.6x23.3x2.9x
Sun, 26 Oct 2025US$1.6tUS$550.7bUS$64.0b21.9x25.5x3x
Tue, 23 Sep 2025US$1.5tUS$549.9bUS$63.6b20.2x23.7x2.7x
Thu, 21 Aug 2025US$1.5tUS$549.2bUS$63.7b20.6x23.8x2.8x
Sat, 19 Jul 2025US$1.5tUS$540.7bUS$63.8b21.2x22.8x2.7x
Mon, 16 Jun 2025US$1.4tUS$540.1bUS$64.0b20.6x22.3x2.6x
Wed, 14 May 2025US$1.4tUS$540.0bUS$63.9b20.3x21.9x2.6x
Fri, 11 Apr 2025US$1.3tUS$526.8bUS$63.6b20.1x21x2.5x
Sun, 09 Mar 2025US$1.3tUS$526.8bUS$63.1b20x21.4x2.6x
Tue, 04 Feb 2025US$1.4tUS$527.0bUS$60.4b20.2x22.5x2.6x
Thu, 02 Jan 2025US$1.3tUS$523.4bUS$60.0b20x21.9x2.5x
Sat, 30 Nov 2024US$1.4tUS$533.3bUS$61.2b21.3x23.7x2.7x
Mon, 28 Oct 2024US$1.4tUS$523.5bUS$61.4b19.6x22.8x2.7x
Wed, 25 Sep 2024US$1.4tUS$522.9bUS$60.5b19.9x23.1x2.7x
Fri, 23 Aug 2024US$1.3tUS$522.9bUS$60.6b19.3x21.7x2.5x
Sun, 21 Jul 2024US$1.2tUS$517.6bUS$60.4b19.1x20.4x2.4x
Tue, 18 Jun 2024US$1.2tUS$517.6bUS$60.4b18x20x2.3x
Thu, 16 May 2024US$1.2tUS$517.8bUS$60.4b18.7x20.6x2.4x
Sat, 13 Apr 2024US$1.1tUS$528.1bUS$57.4b18.1x19.7x2.1x
Mon, 11 Mar 2024US$1.1tUS$526.3bUS$57.9b17.9x19.2x2.1x
Wed, 07 Feb 2024US$1.1tUS$541.4bUS$53.6b17.8x19.7x2x
Fri, 05 Jan 2024US$1.1tUS$543.9bUS$53.5b19.4x21.2x2.1x
Sun, 03 Dec 2023US$1.1tUS$543.9bUS$53.5b19.1x20.6x2x
Tue, 31 Oct 2023US$1.0tUS$550.0bUS$50.3b18.9x20.4x1.9x
Thu, 28 Sep 2023US$1.0tUS$554.7bUS$51.7b18.8x20.3x1.9x
Sat, 26 Aug 2023US$1.1tUS$549.7bUS$50.8b19.9x21.7x2x
Mon, 24 Jul 2023US$1.2tUS$551.7bUS$45.7b21.5x26.1x2.2x
Wed, 21 Jun 2023US$1.2tUS$551.9bUS$45.7b20.4x25.2x2.1x
Fri, 19 May 2023US$1.1tUS$549.1bUS$46.5b20.4x24.6x2.1x
Sun, 16 Apr 2023US$1.2tUS$531.9bUS$45.0b21.5x26.6x2.2x
Tue, 14 Mar 2023US$1.1tUS$532.0bUS$45.0b20.2x25x2.1x
Thu, 09 Feb 2023US$1.2tUS$535.5bUS$49.7b20.9x23.4x2.2x
Sat, 07 Jan 2023US$1.2tUS$531.4bUS$50.1b21.5x24.4x2.3x
Price to Earnings Ratio

24.4x


Total Market Cap: US$1.2tTotal Earnings: US$50.1bTotal Revenue: US$531.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Utilities Sector Price to Earnings3Y Average 22.4x20242025
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 2.7x.
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-0.48%
Utilities0.47%
Other Utilities0.93%
Electric Utilities0.38%
Renewable Energy0.33%
Water Utilities0.14%
Gas Utilities-0.24%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry even though it's trading below its 3-year average PE ratio of 188x.
    • Analysts are expecting annual earnings growth of 25.4%, 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 30.4x.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 25% 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 8.5% 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$80.530.9%
+US$1.5b		12.3%PE25.8x
SO SouthernUS$87.571.4%
+US$1.3b		6.4%PE21.6x
D Dominion EnergyUS$59.061.6%
+US$785.6m		9.7%PE19.3x
DUK Duke EnergyUS$117.680.8%
+US$692.1m		9.2%PE18.6x
PCG PG&EUS$16.081.4%
+US$483.5m		-20.3%PE13.6x

Latest News

OKLO
US$71.62
Oklo
7D
-12.5%
1Y
237.4%
PCG
US$16.08
PG&E
7D
1.4%
1Y
-20.3%

PCG: Massive Transmission Spend Will Drive Data Center Power Demand Upside

Analysts have nudged their average price target for PG&E up to about $21.20. This reflects a slightly more optimistic view on long term revenue growth from data center driven demand and capital investment opportunities, partially offset by lower allowed returns on equity in California.
NFG
US$81.22
National Fuel Gas
7D
-1.4%
1Y
33.8%
ES
US$67.55
Eversource Energy
7D
1.8%
1Y
17.6%

ES: Higher Earnings Outlook Will Mask Mounting Risk From Richer Multiples

Analysts have raised their price target on Eversource Energy from 50.51 dollars to 60.00 dollars, citing higher expected valuation multiples even as they moderate long term assumptions for revenue growth and profit margins. 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 (company filing).
D
US$59.06
Dominion Energy
7D
1.6%
1Y
9.7%

D: Offshore Wind Progress And Earnings Outlook Will Support Steady Future Returns

Narrative Update on Analyst Price Target Analysts have trimmed their average price target on Dominion Energy by approximately $0.20 per share, reflecting slightly softer revenue growth expectations, partially offset by modestly improved profit margin and valuation assumptions. What's in the News Dominion Energy defended its Coastal Virginia Offshore Wind Project as essential to national security and Virginia grid reliability, warning that any halt could threaten power supplies for military, AI, data center, and shipbuilding operations, increase energy costs, and jeopardize thousands of jobs (Regulatory Authority – Compliance).
BEPC
US$38.23
Brookfield Renewable
7D
-1.6%
1Y
38.2%
UGI
US$37.73
UGI
7D
-1.5%
1Y
33.7%

UGI: Future Share Repurchases And Stronger Revenue Outlook Will Support Upside Potential

Analysts have raised their price target on UGI by 1 dollar to 44 dollars, reflecting improved expectations for revenue growth despite a modest trimming of long term profit margin and discount rate assumptions. What's in the News Completed share repurchase of 4,650,000 shares, or 2.33% of outstanding stock, totaling 194.64 million dollars under the buyback program announced on May 8, 2018 (Key Developments) Repurchased 500,000 shares, or 0.23% of outstanding stock, for 16.53 million dollars between July 1, 2025 and September 30, 2025, marking the final tranche of the multi year buyback program (Key Developments) Valuation Changes The fair value estimate has risen slightly from 43 dollars to 44 dollars per share.
CEG
US$357.12
Constellation Energy
7D
-1.9%
1Y
59.6%

CEG Will Balance Nuclear Momentum And Data Center Power Demand Opportunities

Constellation Energy's analyst fair value estimate has been raised sharply from $238.32 to $342.23 as analysts cite strengthening nuclear momentum, improving revenue growth and profit margins, and the company’s positioning to benefit from rising power demand and data center related deals. Analyst Commentary Recent Street research on Constellation Energy shows a notable series of upward price target revisions alongside a shift in stance from some previously neutral voices.
NRG
US$160.43
NRG Energy
7D
1.5%
1Y
77.8%

NRG: Expanding Data Center Power Deals Will Drive Future Free Cash Flow Upside

Analysts have modestly trimmed their blended fair value estimate for NRG Energy to approximately $201.58 from about $208.14 per share, citing improving revenue growth expectations, slightly lower projected profit margins, and a recalibration of valuation multiples amid rising price targets across the independent power producer peer group. Analyst Commentary Recent Street research highlights a broadly constructive stance on NRG Energy, with multiple price target increases and a new positive initiation reinforcing confidence in the company’s valuation and cash flow outlook.
ORA
US$111.68
Ormat Technologies
7D
-1.5%
1Y
64.9%

ORA: Geothermal Alliance And Data Center Demand Will Support Balanced Outlook

Analysts nudged their price target on Ormat Technologies slightly higher to approximately 119 dollars from about 118 dollars, citing marginally lower perceived risk, steady long term revenue and margin expectations, and a modestly richer future earnings multiple. What's in the News Raised 2025 total revenue guidance to a range of 960 million to 980 million dollars, signaling stronger than previously expected growth prospects (Company guidance) Entered a strategic alliance with SLB to fast track development and commercialization of integrated geothermal assets, including enhanced geothermal systems, to expand the addressable market for geothermal power (Company announcement) Planned EGS pilot project at an existing Ormat facility to validate commercial scale deployment and reduce risk for future large scale rollouts (Company announcement) Outlined a joint commercialization strategy with SLB targeting independent power producers, utilities, and data center operators, with the goal of positioning Ormat to participate in long term decarbonization and data center power demand trends (Company announcement) Valuation Changes Fair Value Estimate has risen slightly to approximately 119.1 dollars from about 117.6 dollars, reflecting a modestly higher intrinsic value assessment.
TLN
US$378.97
Talen Energy
7D
-1.2%
1Y
88.1%

TLN: Future Data Center Demand And PJM Pricing Will Drive Balanced Outlook

Analysts have lifted their price target for Talen Energy by $24 to reflect stronger forward power prices in PJM, the expected closing of the Caithness transaction, and growing conviction in the company’s margin resilience and data center driven growth. Analyst Commentary Recent Street research on Talen Energy has been broadly constructive, with multiple price target increases reflecting higher forward power prices in PJM, the anticipated completion of the Caithness transaction, and rising conviction in data center driven growth.
ETR
US$93.37
Entergy
7D
1.1%
1Y
23.1%

ETR: New Large-Load Deals And Dividend Increases Will Support Premium Position

The analyst price target for Entergy has edged higher to approximately $104, up modestly from about $103.60. Analysts point to the companys sector leading earnings growth trajectory and continued momentum from new customer deals and investment opportunities as support for a premium valuation.
NEE
US$80.53
NextEra Energy
7D
0.9%
1Y
12.3%

NEE: Duane Arnold Nuclear Restart Will Drive Long Term AI Power Demand

Analysts have nudged their average price target on NextEra Energy slightly higher to approximately $91.14, reflecting continued confidence in the company’s above market revenue growth and resilient margins, despite mixed individual target revisions across the Street. Analyst Commentary Recent research updates on NextEra Energy highlight a generally constructive backdrop, with multiple upward price target revisions offset by a few modest trims.
DUK
US$117.68
Duke Energy
7D
0.8%
1Y
9.2%

DUK: Southeast Data Center Demand Will Drive Long Term Earnings Upside

Analysts modestly trimmed their fair value estimate for Duke Energy to approximately $136 per share from about $137, citing slightly lower long term profitability assumptions. At the same time, sector wide enthusiasm around regulated utilities and data center driven load growth supports a higher range of Street price targets clustered around $135 to $143.
SO
US$87.57
Southern
7D
1.4%
1Y
6.4%

SO: Composite Equity Units Offering Will Support Future Shareholder Value Upside

Analysts have modestly lowered their price target on Southern by approximately $0.10 to reflect a slightly higher discount rate and marginally less favorable long term valuation assumptions, while leaving core growth and profitability expectations essentially unchanged. What's in the News Southern has completed a $1.75 billion composite equity units offering, issuing 35 million equity derivative units priced at $50 per unit, with a $0.875 discount per security (Key Developments).
BIPC
US$45.54
Brookfield Infrastructure
7D
-2.0%
1Y
13.8%