11 High Growth Utility Stocks To Invest In Now

Page 10 of 10

1. Stem, Inc. (NYSE:STEM)

Number of Hedge Fund Holders: 11

Average 5-Year Revenue Growth: 108.14%

Stem, Inc. (NYSE:STEM) uses AI-driven software and services to help customers manage clean energy assets across the United States and globally. They offer energy storage systems, software, and hardware solutions, catering to energy traders, power producers, utilities, and renewable energy developers. STEM ranks 1st on our list of high growth stocks in the utility space.

Stem, Inc. (NYSE:STEM) has partnered with Summit Ridge Energy to implement its PowerTrack software across Summit Ridge’s fleet of 200 solar sites, totaling 514 MW. Summit Ridge, a major US solar operator, is utilizing PowerTrack to enhance the performance and management of its expanding solar assets. The software enables Summit Ridge to optimize asset operations, monitor performance, and make informed decisions, all while contributing to grid stability and energy security.

In Q4 2024, the company’s revenue fell 67% to $55.8 million, down from $167.4 million in Q4 2023, primarily due to lower battery hardware sales as the focus shifted to software. Stem, Inc. (NYSE:STEM) posted a net loss of $51.1 million in Q4, because of lower revenue and a $547.2 million goodwill impairment earlier in the year. Despite a 72% drop in full-year bookings, Q4 bookings increased 40% year-over-year. The company’s contracted storage AUM rose 2% year-over-year but fell 7% sequentially.

Among the hedge funds tracked by Insider Monkey, 11 funds were bullish on Stem, Inc. (NYSE:STEM) at the end of Q4 2024, compared to 13 funds in the preceding quarter. Prescott Group Capital Management was the biggest stakeholder of the company, with 778,573 shares worth $469,480.

Overall, STEM ranks first among the 11 High Growth Utility Stocks to Invest In Now. While we acknowledge the potential of high growth utility stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STEM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 10 of 10