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.
9. Brookfield Infrastructure Partners L.P. (NYSE:BIP)
Number of Hedge Fund Holders: 4
Average 5-Year Revenue Growth: 27.38%
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is a subsidiary of Brookfield Corporation, and it operates a global business across four business segments – utilities, transport, midstream, and data. In the utilities space, BIP manages power and gas networks, sub-metering services, and home energy solutions. It is one of the best high growth stocks to consider.
On March 25, RBC Capital Markets reaffirmed an Outperform rating on Brookfield Infrastructure Partners L.P. (NYSE:BIP) with a $40 price target. The company has been showing solid momentum with 17.3% revenue growth over the past year and 15 consecutive years of dividend increases. The company recently announced it is selling its remaining 25% stake in the Natural Gas Pipeline Company of America (NGPL) and rolling out a strategy to monetize its data center assets. RBC Capital’s Maurice Choy pointed out that despite a recent dip in the stock price, these moves reflect strong execution and smart capital management.
Brookfield Infrastructure Partners L.P. (NYSE:BIP) and its partners announced plans to acquire Colonial Enterprises, including the Colonial Pipeline, for $9 billion on April 3. Colonial operates the largest refined products pipeline in the US. BIP will invest $500 million, representing 15% of the total equity, funded through capital recycling. The deal is expected to close in the second half of 2025, pending regulatory approval.
According to Insider Monkey’s Q4 data, 4 hedge funds were bullish on Brookfield Infrastructure Partners L.P. (NYSE:BIP), with Select Equity Group holding the biggest stake at nearly $163 million.
8. OPAL Fuels Inc. (NASDAQ:OPAL)
Number of Hedge Fund Holders: 13
Average 5-Year Revenue Growth: 27.60%
OPAL Fuels Inc. (NASDAQ:OPAL) produces and distributes renewable natural gas (RNG) for medium- and heavy-duty trucking fleets across the United States. The company also designs and operates fueling stations for both RNG and hydrogen, helping fleets transition away from diesel. OPAL Fuels Inc. (NASDAQ:OPAL) ranks 8th on our list of high growth stocks to invest in. On March 31, the company successfully sold $8.9 million worth of investment tax credits from the Sapphire RNG facility, which it co-owns. The proceeds will boost the company’s net income and cash flow.
In 2024, OPAL Fuels Inc. (NASDAQ:OPAL) brought three new landfill RNG projects online, strengthening its total RNG capacity, both active and under construction, to 11.4 million MMBtu. Since going public in 2022, OPAL has tripled its production and doubled EBITDA, driven by new projects, upgraded biogas facilities, and growth in its fuel station services. The company ended the year with $300 million in revenue, up 17% year-over-year, and $14.3 million in net income. RNG fuel volumes and fueling station activity also saw strong growth. Several new projects broke ground in 2024 for OPAL Fuels Inc. (NASDAQ:OPAL), and an important Atlantic RNG site is set to go live by late 2025. The company is also pushing forward with 47 fueling stations currently under construction.
According to Insider Monkey’s Q4 data, 13 hedge funds were long OPAL Fuels Inc. (NASDAQ:OPAL), compared to 9 funds in the last quarter.
7. Aris Water Solutions, Inc. (NYSE:ARIS)
Number of Hedge Fund Holders: 31
Average 5-Year Revenue Growth: 30.97%
Aris Water Solutions, Inc. (NYSE:ARIS) is a Texas-based company that assists oil and gas companies in the United States in managing their water use more sustainably. It specializes in collecting, transporting, and managing produced water from drilling activities. Aris also operates recycling facilities that treat and reuse this water. It is one of the top high growth stocks to consider. On February 26, Aris Water Solutions, Inc. (NYSE:ARIS) increased its quarterly dividend by 33% to $0.14 per share for Q1 2025. The dividend was paid on March 27, to shareholders on record by March 13.
Aris Water Solutions, Inc. (NYSE:ARIS) was successful in expanding into mineral extraction, beneficial reuse, and wastewater treatment beyond the oil and gas industry in 2024. In the fourth quarter of 2024, Aris acquired the McNeill Ranch, a 45,000-acre property in New Mexico and Texas, for $45 million. This acquisition strengthens the company’s disposal capacity and gives it more flexibility for future growth. The location also offers additional opportunities for income through renewable energy and other industrial uses. As of the end of 2024, Aris had a net debt of $422 million, with a leverage ratio of 2.0X, which is within their target range.
According to Insider Monkey’s fourth quarter database, 31 hedge funds reported owning stakes in Aris Water Solutions, Inc. (NYSE:ARIS), up from 19 funds in the prior quarter. Ranger Investment Management held the leading position in ARIS, with 1.80 million shares valued at over $43 million.
6. NRG Energy, Inc. (NYSE:NRG)
Number of Hedge Fund Holders: 53
Average 5-Year Revenue Growth: 32.14%
NRG Energy, Inc. (NYSE:NRG) was established in 1989 and is based in Houston, Texas. The company generates electricity from coal, oil, natural gas, and solar, supplying it to residential, commercial, industrial, government, and wholesale customers. NRG deals in retail electricity, energy management solutions, HVAC installation and maintenance, surge protection, carbon offset products, and smart home technologies such as professional monitoring and customer support. It is one of the best high growth stocks to invest in, with a 5-year average revenue growth of 32%.
On April 4, Goldman Sachs initiated coverage of NRG Energy, Inc. (NYSE:NRG) with a Buy rating and a price target of $129, citing strong free cash flow, steady dividend growth, and share buybacks. The firm sees upside from potential data center deals and expansion plans that avoid added market risk, highlighting NRG’s solid financial strategy and long-term growth potential.
NRG Energy, Inc. (NYSE:NRG) announced a quarterly dividend of $0.44 per share on its common stock on April 8, which equals $1.76 annually. The dividend will be paid on May 15, to shareholders on record as of May 1.
Among the hedge funds tracked by Insider Monkey in Q4 2024, 53 funds were bullish on NRG Energy, Inc. (NYSE:NRG), compared to 49 funds in the preceding quarter. Paul Singer’s Elliott Management held the biggest stake in NRG, with 4.80 million shares valued at $433 million.
5. Fluence Energy, Inc. (NASDAQ:FLNC)
Number of Hedge Fund Holders: 36
Average 5-Year Revenue Growth: 63.39%
Fluence Energy, Inc. (NASDAQ:FLNC) is a Virginia-based provider of energy storage systems and optimization software worldwide. The company offers storage products tailored for everything from large-scale grid use to smaller commercial applications. In addition to hardware and software, Fluence also delivers engineering, installation, and ongoing maintenance services, partnering with utilities and industrial customers across the globe. FLNC ranks 5th on our list of the best high growth stocks to buy.
On April 16, Canaccord Genuity reiterated a Buy rating on Fluence Energy, Inc. (NASDAQ:FLNC) but trimmed the price target from $14 to $10. Fluence faces challenges like project delays, competition from China, and tariff issues, causing a 77% drop in stock price. Despite this, Canaccord remains optimistic about the company’s long-term prospects, expecting strong free cash flow and 22% revenue growth for FY2025. The firm has adjusted the price target based on 2027 earnings projections and highlighted Fluence’s strategic US cell manufacturing plans to avoid tariffs.
For fiscal year 2025, Fluence Energy has slashed its revenue guidance to $3.1 billion to $3.7 billion from the previous range of $3.6 billion to $4.4 billion, driven by delays in contract signings in Australia. The company has also cut its adjusted EBITDA forecast to $70 million to $100 million, reflecting lower expected revenue and margins. Despite these changes, Fluence Energy, Inc. (NASDAQ:FLNC) is maintaining its annual recurring revenue guidance of around $145 million. The company is utilizing the recent $400 million convertible note offering to strengthen its financial position and support its strategy for domestic content growth.
According to Insider Monkey’s fourth quarter database, 36 hedge funds were bullish on Fluence Energy, Inc. (NASDAQ:FLNC), compared to 27 funds in the prior quarter. Stuart J. Zimmer’s Zimmer Partners was the biggest stakeholder of the company, with 2.14 million shares valued at $34 million.
4. Cadiz Inc. (NASDAQ:CDZI)
Number of Hedge Fund Holders: 12
Average 5-Year Revenue Growth: 69.38%
Cadiz Inc. (NASDAQ:CDZI) ranks 4th on our list of the best high growth stocks in the utility sector. The company provides a range of water solutions across the United States, operating through two main divisions: Land and Water Resources and Water Filtration Technology. Its services include water supply, storage, transportation, and advanced filtration, particularly for treating contaminated groundwater.
On April 17, Roth MKM initiated coverage of Cadiz Inc. (NASDAQ:CDZI) with a Buy rating and a price target of $10. Analysts view the company’s Mojave Ground Water Bank and Supply system as a major step toward addressing Southern California’s mounting water supply issues. With most of the necessary permits already in place, the project is expected to deliver solid cash flow, with estimates putting its net present value around $1 billion.
On March 24, Cadiz Inc. (NASDAQ:CDZI) announced a cash dividend for its 8.875% Series A Preferred Stock. Shareholders will receive $550 per full share, or $0.55 per depositary share. The dividend was distributed on April 15, to shareholders on record as of April 4.
According to Insider Monkey’s fourth quarter database, 12 hedge funds were bullish on Cadiz Inc. (NASDAQ:CDZI), up from 4 funds in the prior quarter. Whitefort Capital was the biggest stakeholder of the company, with 3.71 million shares valued at $19.3 million.
3. NextNRG Inc. (NASDAQ:NXXT)
Number of Hedge Fund Holders: N/A
Average 5-Year Revenue Growth: 71.15%
NextNRG Inc. (NASDAQ:NXXT) provides mobile fueling services in the United States, offering both on-demand and subscription-based fuel delivery for individuals, fleets, and marine clients. The company is also working on innovative solutions like wireless EV charging, battery storage, solar energy systems, and smart grid technology. It is one of the best high growth stocks to watch.
NextNRG Inc. (NASDAQ:NXXT)’s revenue came in at $6.15 million for March 2025, up 161% year-over-year. Fuel deliveries also skyrocketed by 210%. For Q1 overall, revenue climbed to $16.2 million, nearly triple the volume from the same period last year. NextNRG’s strategic acquisitions and partnerships with major fleet operators are proving successful, driving increased demand for its mobile fueling platform. The company is also preparing to launch its smart microgrid systems and wireless EV charging technology.
On April 4, NextNRG Inc. (NASDAQ:NXXT) announced the expansion of its partnership with Sunbelt Rentals by taking its mobile fueling services to Texas, building on its existing work with Sunbelt in Florida. NextNRG will now fuel Sunbelt’s equipment directly at job sites and rental branches across the state. The company also launched a custom fueling portal so Sunbelt teams can schedule deliveries, track activity, and access real-time reports.
2. New Fortress Energy Inc. (NASDAQ:NFE)
Number of Hedge Fund Holders: 34
Average 5-Year Revenue Growth: 94.98%
New Fortress Energy Inc. (NASDAQ:NFE) is a New York-based company that provides natural gas and power solutions worldwide. NFE builds gas infrastructure and leases LNG carriers and floating storage units. The company operates facilities in Jamaica, Puerto Rico, Mexico, Brazil, and the United States, aiming to make cleaner energy more accessible and reliable. It is one of the best high growth stocks to invest in.
On March 28, Stifel analysts maintained a Buy rating on New Fortress Energy Inc. (NASDAQ:NFE) with a $16 price target. The analysts observed that NFE sold its Jamaican operations to Excelerate Energy for $1.055 billion, a move that is expected to help reduce its $9.5 billion debt. While the stock price dropped after the announcement, Stifel sees it as a good buying opportunity, believing the sale will improve the company’s financial stability and open up future growth prospects.
In Q4 2024, New Fortress Energy Inc. (NASDAQ:NFE) outperformed expectations with adjusted EBITDA of $313 million, surpassing the forecast of $200-$220 million. A major achievement was the completion of NFE’s Fast LNG asset, which is now operational and will secure future LNG supply. The company also extended its gas supply contract in Puerto Rico, aiming to reduce emissions and cut costs. In Brazil, its power plant projects are progressing well, and they are positioned to take advantage of upcoming power auctions.
According to Insider Monkey’s Q4 data, 34 hedge funds reported owning stakes in New Fortress Energy Inc. (NASDAQ:NFE), compared to 17 funds in the prior quarter. David Rosen’s Rubric Capital Management was the largest stakeholder of the company, with 15 million shares valued at $226.8 million.
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.
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