In the 2021 Utilities outlook, Deloitte stated that the Biden Administration can usher in the latest growth era for the utility firms in the USA as this new government is planning to accomplish net-zero emissions of greenhouse gas by the year 2050 along with investing $2 trillion for accomplishing this particular target. According to this report, the utility firms can also play a major role in the process of EV revolution, as customers and governments will depend on them for electric cars’ charging networks. This report also stated that the September 2020 ruling of the Federal Energy Regulatory Commission is enabling the particular energy resource aggregators for the purpose of competing in the different wholesale electric marketplace of the region that will lead to the huge growth of technologies in the utility industry. Such technologies comprise smart building devices, EVs, and rooftop solar arrays.
As per the Boston Consulting Group’s report, North American and European utility and power companies are delivering the median annual total return to shareholders of approximately 10.5% for the 5 years, thus placing the industry in the midst of 33 industries being evaluated in this report. The investors, according to the report, in the utility industry are now gearing towards long-term attractive growth catalysts such as solar, wind, and some other renewable sources of energy. This is also found that firms are shifting away from relatively riskier options to some regulated businesses, thus increasing their EBITDA valuation multiples and margins. The winds related to change are moving across the utilities industry and this is now believed by the analysts that this is the appropriate time for making an investment in utility stocks for gaining huge benefits.
We are going to share the 10 best utility stocks in accordance with the post shared by Insider Monkey on Yahoo. Our list starts with American Water Works Copany Inc., which contains different subsidiaries which are managing wastewater systems and municipal drinking water systems.
According to Insider Monkey:
“A total of 30 hedge funds tracked by Insider Monkey held stakes in American Water Works as of the end of the third quarter, flat from the previous quarter. The net worth of these shares is $675.76 million.”
The next company or utility stock on the list is AES Corp which is based in Virginia and is engaged in generating electric power. According to Insider Monkey:
“In December 2020, Siemens and AES said the Qatar Investment Authority agreed to invest $125 million for a minority stake in the companies’ energy storage Fluence joint venture. The deal valued the venture at $1 billion. Jos Shaver’s Electron Capital Partners owns about 7.8 million shares of AES, worth $141.24 million.”
If you want to know more about utility stocks then read on 12 Best Utility Stocks To Buy Now.