Utility firms provide society's lifeblood by generating and distributing resources, including electricity, natural gas, water, and waste management. Many of these companies are subject to stringent regulations. Dominion Energy Inc., Duke Energy Corp., and Xcel Energy Inc. are just a few examples of the many significant utility companies that belong to this group.

The Utilities Select Sector SPDR ETF (XLU) has outperformed the broader US stock market by a wide margin over the previous 12 months. The Russell 1000 Index returned -7.6% over the past year, while XLU lost 14.9%.

The market data in the following tables are current as of August 9, 2022. Here are three of the best utility companies you can buy right now, ranked by value, growth, and momentum.

Leading Utility Stocks to Invest In

The P/E ratios of stocks in this industry were among the lowest in the market last year. A low P/E ratio is preferable since it means more of the company's profits will be returned to investors in the form of dividends and share repurchases—the cheapest and most valuable utility company stocks by market cap ($B).

After 12 months, the P/E ratio for NRG Energy, Inc. (NRG) is lower at 38.33 than for UGI Corp. (UGI), which is at 40.06. From YCharts: With closing prices of 41.02, 8.2, and 8.9, OGE Energy Corp.

NRG Energy, Inc. is a diversified energy company that produces and distributes electricity and natural gas to residential, commercial, and industrial customers in the United States and Canada. As of August 4, 2022, the numbers for the second quarter were made public. The company's net profit decreased despite a surge in revenue. Fewer mark-to-market gains on hedge positions were cited as the cause of earnings decline, albeit somewhat offset by lower impairment costs.

UGI uses its companies to distribute and advertise its energy goods and services to customers. The company operates natural gas and electric utility services, distributes electricity, and owns and operates midstream energy assets. Oklahoma Gas & Electric (OGE) Corp. is a holding corporation with multiple subsidiaries to generate and distribute power in Oklahoma and western Arkansas. The corporate ancestor of OG&E.

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Find out what a made-up investment would be worth right now. Please select a Buy Date and enter the WMT Stock Code below to invest $1,000 in Walmart, Inc. My first year of college was five years ago, and COMPUTE is The Utilities Company With The Highest Growth Rate.

The best utility stocks, as determined by a growth model that gives equal weight to a company's most recent quarterly YOY percentage increase in sales and most recent quarterly YOY percentage increase in earnings per share, are as follows. Both revenue and profit are critical to the success of a company. Due to accounting irregularities in a given quarter, a company's rating based on a single growth statistic may not reflect the company as a whole (such as changes in tax law or restructuring charges). Companies that saw quarterly earnings or revenue growth of more than 2,500% were considered outliers.

Dollar-Price of Rising Utilities' Stocks

Dollar Value of the Market Percentage Increase in Earnings Per Share Florida Power & Light Company is a subsidiary of NextEra Energy, Inc., one of the world's major utility companies. NextEra Energy is a major electricity producer in North America, serving wholesale and retail consumers with its output from renewable energy sources like solar, wind, and nuclear power. The financial results for NextEra Energy's second quarter of fiscal 2022 were released on July 22. NextEra Energy's operating revenues surged, leading to a fivefold increase in net profitability. The company forecast continued solid sales and EPS growth, as well as a dividend rise of roughly 10% per share year through at least 2024.

PPL Corporation, which has the 3-digit stock ticker symbol PPL, owns four separate utility companies. It provides natural gas and electricity to 3.5 million consumers in the Northeastern United States and is investing significantly in renewable energy sources, including hydrogen and biofuels.

Most Promising Utility Stocks

New Fortress Energy Inc., a utility infrastructure company, focuses on the investment and operation of utilities such as natural gas storage and power plants. On August 4, the company and Plug Power Inc., a leading provider of turnkey hydrogen solutions, announced plans to construct a green hydrogen plant with a capacity of 120 MW near Beaumont, Texas. When completed, New Fortress Energy is expected to be one of the largest plants of its sort in the Americas.

Located in the utility industry, Exelon Corp. is a holding company with subsidiaries. It provides power generation, sales, and distribution in one convenient location. The Exelon grid connects the Midwest, the Mid-Atlantic, and the Empire State, among other areas.