10 Best Electric Utility Stocks To Invest In

8. Evergy, Inc. (NASDAQ:EVRG)  

Number of Hedge Fund Holders: 36

Evergy, Inc. (NASDAQ:EVRG), created in 2018 from the merger of Great Plains Energy and Westar Energy, serves 1.7 million customers across Kansas and Missouri, with over 40 power plants providing a generating capacity of 16,000 megawatts.

On October 29, Mizuho initiated coverage on Evergy, Inc. (NASDAQ:EVRG) with an Outperform rating and a $67 price target. Mizuho’s analysis indicates that Evergy’s shares are trading at about a 12% P/E discount relative to its peers, with the potential to narrow to a low-single-digit discount in the near term and reach peer-level valuations over the long term. According to the firm, Evergy, Inc. (NASDAQ:EVRG) plans to grow its rate base at a 6% CAGR through 2028, supporting EPS growth of 4%-6% through 2026 without needing additional equity. Mizuho also noted potential for additional capital expenditure, particularly in power generation, to meet the rising demand from data centers and manufacturing in Kansas and Missouri.

By the end of Q2 2024, 36 hedge funds tracked by Insider Monkey held stakes in Evergy, Inc. (NASDAQ:EVRG), up from 35 in the previous quarter, with total holdings exceeding $1.22 billion.

Artisan Value Income Fund stated the following regarding Evergy, Inc. (NASDAQ:EVRG) in its first quarter 2024 investor letter:

“In Q1, we added two utilities to the portfolio: Alliant Energy and Evergy, Inc. (NASDAQ:EVRG). Evergy serves more than 1.7 million customers in Kansas and Missouri. In addition to the aforementioned dynamics weighing on utilities share prices, Evergy had two key rate cases in 2023, one in Kansas and the other in Missouri, that presented risk for investors. The Missouri case went better than expected, but the returns allowed by the Kansas regulator were punishingly low. Though Evergy operates in a subpar regulatory environment, the utility is a good operator, with strong customer satisfaction scores, below-average capex needs and a clean balance sheet. The regulatory environment may improve at some point, but even if it does not, Evergy trades for just 13X 2024 earnings, which is below average relative to its history and peers— and pays a dividend yielding 4.7%.”