10 Most Profitable Utility Stocks to Buy Now

4. Sempra (NYSE:SRE)

Net Profit Margin: 26.55%

Sempra (NYSE:SRE) serves one of the most extensive utility customer bases in the United States. It owns 80% of Oncor, a transmission and distribution company in Texas, and distributes electricity and natural gas throughout Southern California. Over 20 million consumers are served by SoCalGas and San Diego Gas & Electric, while over 10 million customers in Texas are served by Oncor. Sempra Infrastructure Partners, of which the firm maintains a majority stake, owns and runs infrastructure in Mexico as well as liquefied natural gas plants in North America.

For 2024, Sempra (NYSE:SRE) reported adjusted EPS of $4.65, which was marginally below the middle of their guidance range. The business has issued a 2026 EPS projection of $4.80-$5.30, which represents about 12% growth from the 2025 midpoint, and amended its 2025 EPS guidance to $4.30-$4.70. Notably, SRE is increasing its long-term EPS growth rate projection to 7-9% because of the impressive growth in earnings that Sempra Texas is anticipated to generate. Opportunities at Oncor account for more than half of the company’s new record capital plan of $56 billion for 2025–2029, which represents a 16% increase over the previous plan. The positive projection, combined with double-digit average analyst upside, leads us to add the company to our list of the Best utility stocks.

Sempra (NYSE:SRE)’s price target was increased by Morgan Stanley from $85 to $86. The analyst informs investors that the company is revising its price expectations for North American Regulated and Diversified Utilities/IPPs. According to the company, utilities beat the S&P’s 1.40% decline in February. Regulatory instability in power markets, renewables defense with safe harboring, equipment onshoring, rising return levels, and new generation development problems are among the key takeaways from the company’s annual Energy & Power Conference, according to the firm.