10 Best Performing Utilities Stocks So Far in 2025

6) Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS)

% Gain on a YTD Basis: 19.5%

Number of Hedge Fund Holders: 18

Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) offers basic and environmental sanitation services in the São Paulo State, Brazil. Bank of America Securities analyst Gustavo Faria reiterated a “Buy” rating on the company’s stock, setting a price target of $23.20. As per the analyst, the regulation change about tariff adjustments is expected to positively impact the company’s NPV.

Furthermore, the concerns about revenue gaps because of discounts provided to large clients are deemed manageable, says Faria. Despite these discounts contributing to the revenue gap, the potential impact is anticipated to be minimized via regulatory recognition of part of these discounts and Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS)’s initiatives to close the gap. The company’s strong earnings growth and attractive valuation metrics support a “Buy” rating.

Companhia de Saneamento Básico do Estado de São Paulo – SABESP (NYSE:SBS) plans to double its asset base until 2029. Furthermore, the company’s new compensation model will be aligned with the universalization of water and sewage services goals set by the concession agreement. Overall, the company remains well-placed to benefit from the utility sector growth mainly through privatization opportunities, infrastructure investments regulatory reforms, and urban growth.