Utilities are having their moment.
The sector is up 18% this year, trailing only tech and communication services in the S&P 500. Some individual names have done even better—NRG is up 80%, Vistra has nearly doubled since its April low, and Constellation Energy is up 60%.
The driver is straightforward: AI data centers need massive amounts of power, and utilities with excess capacity can essentially name their price. It’s showing up in earnings in a big way.
But here’s the question everyone’s asking now—after these kinds of runs, is there any upside left? We dug through analyst targets to find out which utility stocks still have room to move higher. What we found: Wall Street thinks several names have 15-29% more upside from current levels.
Here are three worth watching.
PG&E (PCG) – 29% Upside
Analyst target: $21.36 | Current level: ~$16.00
PG&E tops the list with the most upside potential according to Wall Street, despite all the baggage that comes with being a California utility dealing with wildfire risk.
The company is walking a tightrope right now. On one side, they need to invest heavily in fire mitigation. On the other, they can’t let electric bills spiral even higher than they already have. It’s not an easy balance, but Fitch just upgraded their credit rating, which suggests they’re managing it better than expected.
Mizuho points out that PCG is trading at one of the widest P/E discounts in the utility sector despite posting strong earnings growth. That discount exists for a reason—there are regulatory decisions coming that could go either way. But if you believe management can navigate the fire risk and regulatory environment, the 29% upside is compelling.
The risk is real here, but so is the potential reward. This isn’t a safe, boring utility play—it’s a turnaround story with regulatory overhang. That’s why the valuation is where it is.
Edison International (EIX) – 16% Upside
Analyst target: $66.17 | Current level: ~$57
Another California utility, another fire story.
Edison International owns Southern California Edison and is dealing with potential liability from the Eaton fire in Los Angeles. They’ve launched a compensation program for impacted residents, but costly litigation is almost certainly ahead.
Despite this, analysts see 16% upside from here. The company has been dealing with fire-related issues for years now, so this isn’t new territory for them or for investors who follow the stock. What’s different this time is the power demand backdrop—data centers need electricity, and Edison is positioned to benefit from that secular trend even while managing fire risk.
The wildfire liability is the obvious risk factor. But if you think the compensation program and litigation costs are manageable, and you want exposure to California’s power demand growth, Edison offers an entry point with double-digit upside potential according to the Street.
Vistra (VST) – 34% Upside
Analyst target: $242.35 | Current level: ~$179
Vistra has already had an incredible run this year, but Wall Street thinks it has another 34% to go.
The key here is flexibility. Unlike utilities locked into long-term contracts, Vistra can sell power to the highest bidder. In an environment where AI data centers are desperate for electricity, that’s a massive advantage. They’re capturing premium pricing in real time.
Multiple analysts just raised their price targets—BNP Paribas, BMO Capital, and Evercore ISI all moved higher recently. The fundamental story is simple: power demand is surging, and Vistra is positioned to monetize it better than most.
This is probably the cleanest story of the three. No wildfire liability, no regulatory overhang—just a company selling power into a market where demand is exploding and they have pricing power. The stock isn’t cheap after this year’s rally, but if the AI buildout continues at its current pace, the earnings growth could justify current levels and then some.
Our Take
Utilities used to be the stocks you bought for the dividend and forgot about. That’s changed. The AI boom has turned power generation into one of the most compelling supply-demand stories in the market right now.
These three names all have analyst support for further upside, but they’re very different risk profiles. PG&E and Edison come with regulatory and litigation risk that keeps their valuations compressed. Vistra is cleaner but already up significantly this year.
If you’re looking at utilities for the first time, Vistra is probably the easier story to understand and own. If you’re willing to take on California regulatory risk for a potentially bigger discount to fair value, PG&E offers the most upside according to the Street.
The broader utility sector trade might be getting crowded, but individual opportunities still exist if you know where to look.