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U.S. Utilities Sector Analysis

UpdatedDec 24, 2025
DataAggregated Company Financials
Companies117
  • 7D0.3%
  • 3M-0.8%
  • 1Y12.5%
  • YTD13.0%

Over the last 7 days, the Utilities industry has remained flat, although notably Constellation Energy gained 6.0%. As for the the longer term, the industry is up 13% over the past 12 months. Earnings are forecast to grow by 12% annually.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 24 Dec 2025US$1.5tUS$556.5bUS$68.5b19.4x22.1x2.7x
Fri, 21 Nov 2025US$1.6tUS$558.1bUS$68.4b20.2x23x2.8x
Sun, 19 Oct 2025US$1.6tUS$549.9bUS$63.6b21.4x25.7x3x
Tue, 16 Sep 2025US$1.5tUS$549.2bUS$63.7b20.4x23.7x2.7x
Thu, 14 Aug 2025US$1.5tUS$549.0bUS$63.6b20.8x24x2.8x
Sat, 12 Jul 2025US$1.4tUS$540.7bUS$63.8b20.8x22.6x2.7x
Mon, 09 Jun 2025US$1.4tUS$540.1bUS$64.0b20.7x22.2x2.6x
Wed, 07 May 2025US$1.4tUS$536.6bUS$64.0b21x21.9x2.6x
Fri, 04 Apr 2025US$1.4tUS$526.8bUS$63.6b21.1x22x2.7x
Sun, 02 Mar 2025US$1.4tUS$527.4bUS$63.2b20.2x21.8x2.6x
Tue, 28 Jan 2025US$1.4tUS$526.6bUS$58.6b20.1x23.6x2.6x
Thu, 26 Dec 2024US$1.3tUS$523.4bUS$60.0b20.1x22.1x2.5x
Sat, 23 Nov 2024US$1.4tUS$533.4bUS$62.0b21.1x23.1x2.7x
Mon, 21 Oct 2024US$1.4tUS$522.9bUS$60.5b20.1x23.5x2.7x
Wed, 18 Sep 2024US$1.4tUS$522.9bUS$60.5b20.1x22.7x2.6x
Fri, 16 Aug 2024US$1.3tUS$522.9bUS$60.6b19.4x21.3x2.5x
Sun, 14 Jul 2024US$1.2tUS$517.6bUS$60.4b18.9x20.6x2.4x
Tue, 11 Jun 2024US$1.2tUS$518.0bUS$60.4b17.9x20.3x2.4x
Thu, 09 May 2024US$1.2tUS$520.0bUS$59.3b18.8x20.5x2.3x
Sat, 06 Apr 2024US$1.2tUS$561.5bUS$56.9b18.4x20.6x2.1x
Mon, 04 Mar 2024US$1.1tUS$528.5bUS$57.9b17.4x18.6x2x
Wed, 31 Jan 2024US$1.1tUS$544.0bUS$53.2b18.3x20.4x2x
Fri, 29 Dec 2023US$1.1tUS$543.9bUS$53.5b19.4x20.8x2x
Sun, 26 Nov 2023US$1.1tUS$543.9bUS$53.5b18.8x20.3x2x
Tue, 24 Oct 2023US$1.0tUS$549.7bUS$50.8b18.5x19.7x1.8x
Thu, 21 Sep 2023US$1.1tUS$549.8bUS$50.8b20.2x21.9x2x
Sat, 19 Aug 2023US$1.1tUS$549.3bUS$49.6b20.1x22.1x2x
Mon, 17 Jul 2023US$1.2tUS$551.7bUS$45.7b20.8x25.4x2.1x
Wed, 14 Jun 2023US$1.2tUS$551.3bUS$46.4b20.5x24.8x2.1x
Fri, 12 May 2023US$1.2tUS$549.1bUS$46.6b21.1x25.4x2.2x
Sun, 09 Apr 2023US$1.2tUS$532.0bUS$45.0b21.7x26.9x2.3x
Tue, 07 Mar 2023US$1.1tUS$532.0bUS$45.0b20.3x25.5x2.2x
Thu, 02 Feb 2023US$1.2tUS$533.3bUS$50.5b21.7x23.7x2.2x
Sat, 31 Dec 2022US$1.2tUS$531.4bUS$50.1b21x24.5x2.3x
Price to Earnings Ratio

24.5x


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 22.4x202320242025
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 Market2.62%
Utilities0.26%
Electric Utilities0.63%
Gas Utilities0.22%
Other Utilities0.17%
Water Utilities-0.98%
Renewable Energy-1.76%
Industry PE
  • Investors are most optimistic about the Renewable Energy industry even though it's trading below its 3-year average PE ratio of 214x.
    • Analysts are expecting annual earnings growth of 25.5%, 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 8.6% 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
CEG Constellation EnergyUS$361.336.0%
+US$6.4b		57.2%PE41.2x
TLN Talen EnergyUS$380.758.2%
+US$1.3b		84.1%PE77x
PCG PG&EUS$15.863.9%
+US$1.3b		-21.6%PE13.4x
DUK Duke EnergyUS$116.791.0%
+US$933.2m		7.2%PE18.5x
SO SouthernUS$86.390.8%
+US$748.8m		3.9%PE21.3x

Latest News

CEG
US$361.33
Constellation Energy
7D
6.0%
1Y
57.2%

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.
OKLO
US$81.88
Oklo
7D
-2.0%
1Y
246.8%
NRG
US$158.11
NRG Energy
7D
-1.3%
1Y
70.0%

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.
XEL
US$74.01
Xcel Energy
7D
1.2%
1Y
8.5%
TLN
US$380.75
Talen Energy
7D
8.2%
1Y
84.1%

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.
PPL
US$34.81
PPL
7D
2.4%
1Y
6.8%

PPL: Future Returns Will Be Driven By Expanding Data Center Interconnection Demand

The Analyst Price Target for PPL has been trimmed slightly, with our fair value estimate easing about $0.60 to $39.87 as analysts factor in modestly higher long term revenue growth and still solid, though slightly softer, margin and valuation assumptions. Analyst Commentary Street research on PPL over the past several months reflects an overall constructive stance, with the stock consistently rated favorably even as price targets have moved within a relatively narrow band.
PCG
US$15.86
PG&E
7D
3.9%
1Y
-21.6%
EIX
US$60.06
Edison International
7D
3.0%
1Y
-25.2%

Edison International's (NYSE:EIX) Dividend Will Be Increased To $0.8775

Dec 15
Edison International's (NYSE:EIX) Dividend Will Be Increased To $0.8775
VST
US$161.67
Vistra
7D
-6.8%
1Y
12.8%

VST: Data Center Power Demand Will Drive Long-Term Cash Flow Upside

Analysts have raised their fair value estimate for Vistra to $288 from $232 per share. This reflects higher projected revenue growth and profit margins driven by accelerating data center power demand, robust pricing for thermal IPPs, and a series of supportive Overweight and Buy initiations and price target increases across the Street.
NEE
US$79.79
NextEra Energy
7D
-1.9%
1Y
9.4%

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$116.79
Duke Energy
7D
1.0%
1Y
7.2%

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.
ES
US$66.37
Eversource Energy
7D
-2.2%
1Y
15.9%

ES: Earnings Outlook And Multiples Will Likely Support A Stable Profile

Analysts have raised their price target on Eversource Energy by approximately 0.3 percent to about 73 dollars, citing a slightly lower discount rate and modestly higher long term valuation multiples that support a marginally higher fair value estimate. 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 filings).
D
US$58.14
Dominion Energy
7D
-2.0%
1Y
8.1%

D: Earnings Guidance And Modest Buybacks Will Support Steady Future Returns

Analysts have made a slight downward revision to their price target on Dominion Energy, trimming it by approximately $0.07 per share as they fine tune assumptions around long term revenue growth, profit margins and valuation multiples. What's in the News Dominion Energy reported that from July 1 to September 30, 2025, it repurchased no additional shares, but has completed a total buyback of 2,476,657 shares for $191.75 million under its November 6, 2020 authorization (Key Developments).
EXC
US$43.46
Exelon
7D
-1.7%
1Y
15.8%

EXC: Future Earnings Will Reflect Pennsylvania Regulatory Upside And Defensive Power Demand Trends

Analysts have nudged their average price target on Exelon modestly higher, reflecting increased conviction that its favorable regulatory jurisdictions, expected PECO step up in Pennsylvania, and stable earnings profile support upside, even as views diverge on how quickly the current valuation discount should close. Analyst Commentary Street research on Exelon remains mixed, with a growing cohort of bullish analysts highlighting improving fundamentals and valuation upside, while more cautious voices question how durable the current defensive premium and regulatory tailwinds will be as risk appetite normalizes.
AWK
US$130.75
American Water Works Company
7D
-1.5%
1Y
4.0%
SO
US$86.39
Southern
7D
0.8%
1Y
3.9%

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).