In this article, we will take a look at 11 High Growth Utility Stocks To Invest In Now.
Power and utilities companies are facing a tough challenge in making clean, renewable energy more affordable and abundant. With electricity demand growing due to factors like more manufacturing, electrification, and increased data center use, utilities need to quickly expand their infrastructure while keeping energy reliable, rates low, and meeting decarbonization targets. While financing this expansion may be difficult with higher capital costs, there are opportunities to tap into funding from new initiatives like the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA).
According to Deloitte, data centers alone could triple their energy use by 2030, while EV sales and heat pump installations are rising steadily with support from state and federal incentives. To keep up, utilities are focusing on power generation, and solar is leading the way with massive growth. However, natural gas is still the biggest player, though its share might dip next year. Utilities are investing more than ever, with roughly $174 billion spent in 2024, to upgrade and expand the grid. At the same time, they are dealing with supply chain delays, rising costs from extreme weather, and slower regulatory processes. All of this means consumers are likely to see higher electricity bills in the coming years, with wholesale prices expected to rise nearly 20% between 2025 and 2028.
Spending on renewables is on the rise as well, and it is expected to top $25 billion in 2025 and hit $31 billion by 2027. That growth is backed by falling tech costs, government support, and strong demand from both consumers and corporations. Still, connecting faraway renewable sources to where people actually live will require a lot more transmission lines. Natural gas is crucial, especially as backup for renewables and to meet surging data center demand. Long-term gas investments are focused on safety, infrastructure upgrades, and newer uses like hydrogen blending.
Utility stocks, usually seen as slow movers, have been on a surprising hot streak this past year. With big gains in utility stocks and ETFs, it is becoming harder for investors to find affordable, dividend-paying utility stocks. According to Brent Coggins from Triad Wealth Partners, the strategy has shifted, and investors cannot just chase dividends anymore. Now, it is about finding utility companies that are ready to grow, adapt to climate demands, and expand nuclear capabilities. Basically, utilities are looking more like growth stocks than the traditional income plays they used to be. Recent market jitters, like the sell-off caused by Chinese AI startup DeepSeek, temporarily dragged down both AI-related tech and utility stocks. However, analysts like Julien Dumoulin-Smith from Jefferies still recommend focusing on stable, lower-risk names that pay solid dividends. Meanwhile, JPMorgan sees long-term potential in natural gas utilities too, despite the recent dip. Analyst Jeremy Tonet believes demand for natural gas, especially from power-hungry data centers, is not going away anytime soon.
With that market outlook in mind, let’s take a look at some high-growth stocks in the utility sector.
Our Methodology
For this article, we used the Finviz screener to filter out utility stocks with 5-year revenue growth exceeding 20%, verifying this data through additional sources. We selected 11 stocks with the highest revenue growth manually. We have also mentioned the number of hedge fund holders in each firm as per Insider Monkey’s Q4 2024 database. The stocks are ranked in ascending order based on the average 5-year revenue growth.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Essential Utilities, Inc. (NYSE:WTRG)
Number of Hedge Fund Holders: 13
Average 5-Year Revenue Growth: 21.35%
Essential Utilities, Inc. (NYSE:WTRG) is an American company that provides essential services like water, wastewater, and natural gas through its subsidiaries. WTRG’s services reach about 5.5 million customers, including homes, businesses, and even fire protection systems. It is one of the top high growth stocks to invest in.
On January 28, Jefferies upgraded Essential Utilities, Inc. (NYSE:WTRG) from Hold to Buy, setting a price target of $41. The stock got an upgrade due to expected water acquisitions, especially in Pennsylvania, and major compliance-related investments. Jefferies maintained its 2024 and 2025 EPS estimates at $1.98 and $2.15, projecting 6.4% annual growth through 2029 and a 20% total shareholder return.
Since 2020, Essential Utilities, Inc. (NYSE:WTRG) has invested over $5.4 billion in infrastructure upgrades across nine states, with more than $1.3 billion spent in 2024 alone. These efforts include replacing aging pipelines, removing lead service lines, upgrading treatment facilities, and enhancing water pressure systems. The company plans to invest $1.4 billion in 2025 and a total of $7.8 billion through 2029.
According to Insider Monkey’s fourth quarter database, 13 hedge funds were bullish on Essential Utilities, Inc. (NYSE:WTRG), compared to 21 funds in the prior quarter. Steve Cohen’s Point72 Asset Management was the leading stakeholder of the company, with 258,013 shares valued at $9.37 million.
10. Consolidated Water Co. Ltd. (NASDAQ:CWCO)
Number of Hedge Fund Holders: 12
Average 5-Year Revenue Growth: 23.69%
Consolidated Water Co. Ltd. (NASDAQ:CWCO) ranks 10th on our list of high growth stocks in the utility sector. The company provides clean water and water treatment services across the Cayman Islands, the Bahamas, the United States, and the British Virgin Islands. CWCO uses reverse osmosis to turn seawater into drinkable water and supplies it to homes, businesses, and government agencies.
On February 24, Consolidated Water Co. Ltd. (NASDAQ:CWCO) announced that its subsidiary, Cayman Water Company, has secured a new concession from the Cayman Islands government, allowing it to continue exclusively supplying drinking water on Grand Cayman. The company operates three desalination plants, producing about 4 million gallons of water daily to meet growing demand.
Consolidated Water Co. Ltd. (NASDAQ:CWCO) announced on February 26 that its board of directors has approved a quarterly cash dividend of $0.11 per share for the second quarter of 2025. The dividend will be distributed on April 30, to shareholders on record as of April 1.
Among the hedge funds tracked by Insider Monkey in Q4 2024, 12 funds reported owning stakes in Consolidated Water Co. Ltd. (NASDAQ:CWCO), compared to 6 funds in the prior quarter. AltraVue Capital was the top shareholder of the company, with 741,530 shares worth just over $19 million.
