In this article, we discuss the 5 Best Electric Utility Stocks To Buy Now. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Electric Utility Stocks to Buy Now.
5. NRG Energy, Inc. (NYSE: NRG)
Number of Hedge Fund Holders: 35
NRG Energy, Inc. (NYSE: NRG) is a Texas-based electric utility company serving 2.9 retail customers in Texas and the Northeast. It is ranked fifth on our list of 10 best electric utility stocks to buy now. The stock has returned over 21.96% to investors over the course of the past year.
On May 6, NRG Energy, Inc. (NYSE: NRG) posted earnings for the first quarter of 2021, reporting earnings per share of $0.24, missing estimates by $0.05. The revenue over the period was around $8.09 billion, up 300.74% year-over-year.
At the end of the first quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.61 billion in NRG Energy, Inc. (NYSE: NRG), up from 31 the preceding quarter worth $1.47 billion.
On June 27, Goldman Sachs raised its rating on NRG Energy, Inc. (NYSE: NRG) to Conviction Buy from a Buy while raising its price target to $57 from $46. Goldman Sachs noted the retail business of NRG Energy, Inc. (NYSE: NRG), predicting strong free cash flows in 2022 and 2023.
4. FirstEnergy Corp. (NYSE: FE)
Number of Hedge Fund Holders: 51
FirstEnergy Corp. (NYSE: FE) is an Ohio-based electric utility company serving 6 million customers and has a generation capacity of more than 16000 megawatts. It is ranked fourth on our list of 10 best electric utility stocks to buy now. The stock has returned over 32.75% to investors over the course of the past year.
On July 22, FirstEnergy Corp. (NYSE: FE) posted earnings for the second quarter of 2021, reporting earnings per share of $0.59, beating estimates by $0.03. The revenue over the period was around $2.62 billion, up 3.97% year-over-year.
At the end of the first quarter of 2021, 51 hedge funds in the database of Insider Monkey held stakes worth $1.84 billion in FirstEnergy Corp. (NYSE: FE), up from 50 the preceding quarter worth $1.31 billion. Out of the hedge funds being tracked by Insider Monkey, billionaire Carl Icahn’s Icahn Capital LP has initiated a stake in FirstEnergy Corp. (NYSE: FE) in the first quarter of 2021. As of the end of the first quarter of 2021, this stake was worth close to $658 million, comprising 2.75% of its total 13F portfolio.
On July 22, Morgan Stanley raised its price target on FirstEnergy Corp. (NYSE: FE) to $46 from $45 while keeping its Overweight rating after a litigation settlement agreement with the Department of Justice was announced with a lower-than-expected penalty of $230.
3. Duke Energy Corporation (NYSE: DUK)
Number of Hedge Fund Holders: 34
Duke Energy Corporation (NYSE: DUK) is a North Carolina-based electric and natural gas utilities company serving 7.2 million customers. It has 58200 megawatts It is ranked third on our list of 10 best electric utility stocks to buy now. The stock has returned over 30.84% to investors over the course of the past year.
On May 10, Duke Energy Corporation (NYSE: DUK) posted earnings for the first quarter of 2021, reporting earnings per share of $1.26, beating estimates by $0.05. The revenue over the period was around $6.15 billion, up 3.38% year-over-year.
At the end of the first quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $602 million in Duke Energy Corporation (NYSE: DUK). Out of the hedge funds being tracked by Insider Monkey, D. E. Shaw has the most valuable stake in Duke Energy Corporation (NYSE: DUK) as of the end of the first quarter of 2021, worth close to $133 million, comprising 0.12% of its total 13F portfolio.
On June 25, Argus raised its rating on Duke Energy Corporation (NYSE: DUK) to Buy from Hold and gave the company a $106 price target, noting its strong first quarter earnings as well as its dividend yield of 3.9%.
2. The Southern Company (NYSE: SO)
Number of Hedge Fund Holders: 35
The Southern Company (NYSE: SO) is a Georgia-based electric and gas utility company serving 9 million customers in 6 states. It is ranked second on our list of 10 best electric utility stocks to buy now. The stock has returned over 18.95% to investors over the course of the past year.
On July 29, The Southern Company (NYSE: SO) posted earnings for the second quarter of 2021, reporting earnings per share of $0.84, beating estimates by $0.06. The revenue over the period was around $5.20 billion, up 12.6% year-over-year.
At the end of the first quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $464 million in The Southern Company (NYSE: SO), up from 32 the preceding quarter worth $400 million.
Out of the hedge funds being tracked by Insider Monkey, billionaire Ken Fisher’s Fisher Asset Management has increased its stake in The Southern Company (NYSE: SO) in the second quarter of 2021 by 5% to $4.8 million.
Moreover, John Overdeck and David Siegel’s Two Sigma Advisors has increased their stake in The Southern Company (NYSE: SO) in the first quarter of 2021 by 88% to close to $107 million, comprising 0.29% of its total 13F portfolio. This stake is the most valuable position in The Southern Company (NYSE: SO) for the hedge funds being tracked by Insider Monkey, as of the end of the first quarter of 2021.
1. NextEra Energy, Inc. (NYSE: NEE)
Number of Hedge Fund Holders: 63
NextEra Energy, Inc. (NYSE: NEE) is a Florida-based electric utility company. Its Florida Power & Light Company serves more than 11 million customers. It is ranked first on our list of 10 best electric utility stocks to buy now. The stock has returned over 12.18% to investors over the course of the past year.
On July 23, NextEra Energy, Inc. (NYSE: NEE) posted earnings for the second quarter of 2021, reporting earnings per share of $0.71, beating estimates by $0.02. The revenue over the period was around $3.93 billion, down 6.59% year-over-year.
At the end of the first quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $2.73 billion in NextEra Energy, Inc. (NYSE: NEE), up from 61 the preceding quarter worth $3.08 billion. Out of the hedge funds being tracked by Insider Monkey, billionaire Ken Fisher’s Fisher Asset Management has the most valuable stake in NextEra Energy, Inc. (NYSE: NEE), worth close to $1.03 billion, comprising 0.72% of its total 13F portfolio.
On July 13, Credit Suisse gave NextEra Energy, Inc. (NYSE: NEE) an Outperform rating with a price target of $85.
You can also take a peek at 15 Best Value Stocks to Invest In and 10 Best Dividend Contenders to Buy in 2021.
