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U.S. Utilities Sector Analysis

UpdatedAug 24, 2026
DataAggregated Company Financials
Companies114
  • 7D-3.2%
  • 3M-6.1%
  • 1Y0.7%
  • YTD-2.2%

Over the last 7 days, the Utilities industry has dropped 3.6%, and NextEra Energy contributed the most with a 2.9% decline. On the other hand UGI is actually up 6.3%. As for the longer term, the industry's performance has been flat for the past year. As for the next few years, earnings are expected to grow by 10% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 24 Aug 2026US$1.6tUS$595.4bUS$72.0b20.5x21.6x2.6x
Wed, 22 Jul 2026US$1.6tUS$587.1bUS$69.0b21.7x23.6x2.8x
Fri, 19 Jun 2026US$1.6tUS$587.1bUS$69.1b21.2x23.3x2.7x
Sun, 17 May 2026US$1.6tUS$597.6bUS$70.2b20.8x22.8x2.7x
Tue, 14 Apr 2026US$1.7tUS$567.9bUS$67.5b21.8x25.1x3x
Thu, 12 Mar 2026US$1.7tUS$567.9bUS$67.3b21.3x24.8x2.9x
Sat, 07 Feb 2026US$1.6tUS$559.9bUS$67.6b20.3x23x2.8x
Mon, 05 Jan 2026US$1.5tUS$556.5bUS$68.6b19.6x22.4x2.8x
Wed, 03 Dec 2025US$1.6tUS$558.0bUS$68.7b19.9x22.8x2.8x
Fri, 31 Oct 2025US$1.6tUS$553.1bUS$65.0b21.5x24.7x2.9x
Sun, 28 Sep 2025US$1.5tUS$549.9bUS$63.6b20.9x24.3x2.8x
Tue, 26 Aug 2025US$1.5tUS$549.2bUS$63.7b20.5x23.7x2.7x
Thu, 24 Jul 2025US$1.5tUS$540.6bUS$63.8b21.6x23.5x2.8x
Sat, 21 Jun 2025US$1.4tUS$540.2bUS$64.0b20.4x22.1x2.6x
Mon, 19 May 2025US$1.4tUS$540.1bUS$64.0b20.9x22.5x2.7x
Wed, 16 Apr 2025US$1.4tUS$526.8bUS$63.6b20.7x21.5x2.6x
Fri, 14 Mar 2025US$1.3tUS$526.8bUS$63.1b20x21.3x2.6x
Sun, 09 Feb 2025US$1.4tUS$523.9bUS$60.8b20.2x22.4x2.6x
Tue, 07 Jan 2025US$1.4tUS$528.1bUS$58.6b19.8x23.1x2.6x
Thu, 05 Dec 2024US$1.4tUS$533.3bUS$61.2b20.8x23x2.6x
Sat, 02 Nov 2024US$1.4tUS$525.1bUS$62.6b19.4x22.2x2.7x
Mon, 30 Sep 2024US$1.4tUS$522.9bUS$60.5b20x23.2x2.7x
Wed, 28 Aug 2024US$1.3tUS$522.9bUS$60.5b19.3x21.8x2.5x
Fri, 26 Jul 2024US$1.2tUS$516.8bUS$59.4b19.4x21x2.4x
Sun, 23 Jun 2024US$1.2tUS$517.6bUS$60.4b18x19.9x2.3x
Tue, 21 May 2024US$1.3tUS$518.1bUS$60.4b18.7x20.8x2.4x
Thu, 18 Apr 2024US$1.1tUS$528.1bUS$57.4b18.2x19.5x2.1x
Sat, 16 Mar 2024US$1.1tUS$527.9bUS$57.8b17.9x19.1x2.1x
Mon, 12 Feb 2024US$1.1tUS$539.4bUS$54.2b17.7x19.5x2x
Wed, 10 Jan 2024US$1.1tUS$543.9bUS$53.5b19.6x21.2x2.1x
Fri, 08 Dec 2023US$1.1tUS$543.9bUS$53.5b19.2x20.7x2x
Sun, 05 Nov 2023US$1.1tUS$547.1bUS$52.4b19.1x20.6x2x
Tue, 03 Oct 2023US$1.0tUS$554.7bUS$51.7b17.7x19.9x1.9x
Thu, 31 Aug 2023US$1.1tUS$549.7bUS$50.8b20x21.7x2x
Price to Earnings Ratio

21.7x


Total Market Cap: US$1.1tTotal Earnings: US$50.8bTotal Revenue: US$549.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Utilities Sector Price to Earnings3Y Average 22.2x202420252026
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 22.2x.
  • The industry is trading close to its 3-year average PS ratio of 2.5x.
Past Earnings Growth
  • The earnings for companies in the Utilities industry have grown 12% per year over the last three years.
  • Revenues for these companies have grown 2.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market-1.19%
Utilities-3.24%
Water Utilities0.67%
Gas Utilities-0.68%
Electric Utilities-3.17%
Other Utilities-3.41%
Renewable Energy-6.78%
Industry PE
  • Investors are most optimistic about the Water Utilities industry, which is trading close to its 3-year average PE ratio of 23.8x.
    • Analysts are expecting annual earnings growth of 9.5%, which is higher than its past year's earnings growth of 4.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Renewable Energy industry, expecting annual earnings growth of 26% over the next 5 years.
  • However this is lower than its past earnings growth rate of 39% per year.
  • In contrast, the Other Utilities industry is expected to see its earnings grow by 4.9% 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
UGI UGIUS$37.597.1%
+US$536.2m		7.0%PE12x
EIX Edison InternationalUS$71.590.4%
+US$111.6m		31.4%PE7.4x
WTRG Essential UtilitiesUS$40.181.0%
+US$107.8m		2.8%PE20.5x
NFG National Fuel GasUS$82.480.8%
+US$62.7m		-4.9%PE11.6x
AWR American States WaterUS$88.630.9%
+US$30.1m		18.6%PE24.6x

Latest News

DUK
US$119.85
Duke Energy
7D
-3.0%
1Y
-2.6%
NEE
US$83.65
NextEra Energy
7D
-3.0%
1Y
11.1%
YORW
US$34.03
York Water
7D
2.2%
1Y
7.2%
UGI
US$37.59
UGI
7D
7.1%
1Y
7.0%
VST
US$136.21
Vistra
7D
-8.0%
1Y
-28.5%
Narrative Update • Aug 20

VST: AI Data Center Power Deals Will Drive Future Nuclear Upside

Analysts have trimmed their average price target for Vistra as fair value estimates eased to about $308 from roughly $314, reflecting slightly higher discount rates, a more cautious profit margin outlook, and ongoing debate around data center related demand and regulatory timing. Analyst Commentary Recent research highlights a mix of caution and optimism around Vistra, with most Street commentary focusing on data center demand, ERCOT related reviews, and the earnings path over the next few years.
TLN
US$314.46
Talen Energy
7D
-13.3%
1Y
-11.7%
Narrative Update • Aug 19

TLN: PJM Tightness And Data Center Contracts Will Support Future Earnings Power

The analyst fair value estimate for Talen Energy has been revised modestly lower from $589.15 to $567.00 as analysts factor in higher perceived risk around data center buildouts and regulatory directives, partly offset by stronger margin assumptions and contracted cash flow support. Analyst Commentary Recent Street research on Talen Energy shows a mixed but generally constructive tone, with several bullish analysts still highlighting growth projects, contracted cash flows and market exposure, even as some price targets are revised lower to reflect project and regulatory risks.
AES
US$14.77
AES
7D
0.3%
1Y
9.5%
Seeking Alpha • Aug 19

AES Corporation: Spread Plus Dividend Still Pays 10.7% Annualized

Summary The AES Corporation trades at $14.75 against a signed $15.00 cash offer from a consortium led by GIP, which is part of BlackRock, and the Swedish firm EQT. Shareholders approved the deal in June, and antitrust is cleared. FERC is the last contested approval, and I don’t expect it to change the outcome. Holding to a mid-December close returns 3.5%, or 10.7% annualized, with the spread and dividends both fixed. A later close pays more in total but less annualized. AES is now more like a short-duration cash equivalent than a utility position. Current holders don’t have to wait for the close to capture most of the remaining gain. Read the full article on Seeking Alpha
WTRG
US$40.18
Essential Utilities
7D
1.0%
1Y
2.8%
EIX
US$71.59
Edison International
7D
0.4%
1Y
31.4%
Seeking Alpha • Aug 18

Edison International's SoCal Subsidiary Has 4 PFDs To Consider: 2 Rated Buys

Summary Edison International preferreds offer yield diversification beyond typical financial sector issuers, appealing to investors comfortable with California-only electric utilities. EIX's preferred stock dividends are well-covered, with $107MM in obligations versus $2.9B in net income, and preferreds constitute just 3.1% of the capital structure. The recent credit rating downgrade from BBB to BB explains higher coupons on new SCE preferred issues, reflecting increased perceived risk. I rate EIX a Buy for those seeking a yield premium over other major electric utilities, with the caveat of California-specific risks and interest rate uncertainty. Both the Series L and Series N PFDs get Buy ratings as they should be attractive to investors with different investing goals. Read the full article on Seeking Alpha
CDZI
US$3.66
Cadiz
7D
5.5%
1Y
1.9%
CEG
US$272.88
Constellation Energy
7D
-3.4%
1Y
-12.0%
New Narrative • Aug 16

Constellation Energy ($CEG): The Nuclear Scarcity Play Powering the AI Demand Boom

The market is underappreciating how scarce true 24/7 carbon-free baseload has become just as AI data centers and electrification drive the sharpest sustained rise in U.S. power demand in decades. Most investors still treat CEG as a “utility with nuclear exposure.” It is better understood as the owner of the largest, highest-quality fleet of scarce, dispatchable zero-carbon generation that hyperscalers cannot easily replicate or replace.
NFG
US$82.48
National Fuel Gas
7D
0.8%
1Y
-4.9%
Narrative Update • Aug 16

NFG: Ohio Acquisition And Dividend Growth Will Support Higher Future P/E

Analysts have trimmed their price target on National Fuel Gas from $98.50 to $92.00, citing updated assumptions for fair value, discount rate, revenue growth, profit margins, and future P/E that align with the recent reduction in the Street target from $99 to $93. What’s in the News for National Fuel Gas National Fuel Gas reported Q3 2026 adjusted EPS of $1.54, which was slightly below the prior year, and discussed ongoing progress on its Ohio utility acquisition, according to the Q3 2026 earnings call transcript.
SO
US$88.94
Southern
7D
-3.6%
1Y
-4.5%
AWR
US$88.63
American States Water
7D
0.9%
1Y
18.6%
Narrative Update • Aug 09

AWR: Constructive Regulation And Dividend Streak Support Fair Outlook Despite Premium Multiple

Analysts raised their price target on American States Water from $76 to $84, citing a constructive California regulatory backdrop for its regulated water operations, along with steady earnings and dividend visibility. These factors are partly balanced by what some see as a premium valuation and a higher assumed future P/E of roughly 26x.
AEP
US$120.94
American Electric Power Company
7D
-4.4%
1Y
7.0%
EXC
US$43.78
Exelon
7D
-4.5%
1Y
-2.6%
Analysis Article • Aug 03

Exelon Corporation Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

Exelon Corporation ( NASDAQ:EXC ) shareholders are probably feeling a little disappointed, since its shares fell 3.6...