13 Best Utility Stocks to Buy According to Analysts

2. Constellation Energy Corporation (NASDAQ:CEG)

Average estimated analysts’ upside: 42.52%

Number of Hedge Fund Holders: 85

​​Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the US, operating a diversified generation fleet that includes nuclear, hydroelectric, wind, and solar facilities, with a total capacity of approximately 32,400 megawatts. The company provides electricity, natural gas, and energy-related products and sustainable solutions to residential, commercial, industrial, and public sector clients. CEG ranked sixth on our recent list of 10 AI Stocks on the Move.

Constellation Energy Corporation (NASDAQ:CEG) delivered exceptional financial results in 2024, with GAAP net income of $11.89 per share and Adjusted Operating Earnings of $8.67 per share, surpassing the top end of its twice-revised guidance range of $8.00-$8.40 per share. The company maintained strong operational performance with a nuclear operating capacity factor of 94.6% for 2024, demonstrating reliable clean energy generation. The financial strength was further validated by Moody’s upgrade of its credit rating, reflecting improved debt coverage metrics and strong financial performance. With a whopping 42.52% estimated average upside, CEG is included in the second place on our list of the best utility stocks to buy according to analysts.

Constellation Energy Corporation (NASDAQ:CEG) has made significant strategic moves, including entering a definitive agreement to acquire Calpine Corporation, which will combine the largest producer of clean, emissions-free energy with reliable natural gas assets, creating the nation’s leading competitive retail supplier. CEG demonstrated strong shareholder commitment by completing $1 billion in share repurchases in 2024, bringing the cumulative repurchase to $2 billion since 2023, while also increasing the annual per-share dividend by 25% with plans for an additional 10% growth in 2025.