10 Best Utilities for November 2025
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Market Overview & Selection Criteria
The utilities sector remains a cornerstone for defensive portfolios, offering stability and consistent cash flows even during market volatility. For this watchlist, stocks were selected using ValueSense’s proprietary intrinsic value tools, focusing on companies with strong fundamentals, attractive valuations, and sector-leading growth or efficiency metrics. Each pick was screened for quality rating, recent returns, financial health, and sector relevance, ensuring a diversified and robust set of investment ideas[1][2][3].
Featured Stock Analysis
NextEra Energy, Inc. (NEE)
| Metric | Value |
|---|---|
| Market Cap | $167.4B |
| Quality Rating | 6.4 |
| Intrinsic Value | $41.7 |
| 1Y Return | 4.3% |
| Revenue | $26.3B |
| Free Cash Flow | $10.1B |
| Revenue Growth | 0.0% |
| FCF margin | 38.5% |
| Gross margin | 62.6% |
| ROIC | 5.4% |
| Total Debt to Equity | 149.7% |
Investment Thesis
NextEra Energy stands out as a leader in clean energy, with a substantial market cap of $167.4B and a quality rating of 6.4. Despite flat revenue growth 0.0%, its robust free cash flow $10.1B and high gross margin 62.6% underscore operational efficiency. The company’s intrinsic value $41.7 suggests a potential undervaluation relative to current market sentiment.
Key Catalysts
- Expansion in renewable energy projects
- Industry-leading free cash flow margin 38.5%
- Stable returns (1Y Return: 4.3%)
- Strong gross margin supports profitability
Risk Factors
- Elevated total debt to equity 149.7%
- Modest ROIC 5.4% limits capital efficiency
- Flat revenue growth may signal saturation
GE Vernova Inc. (GEV)
| Metric | Value |
|---|---|
| Market Cap | $159.2B |
| Quality Rating | 6.2 |
| Intrinsic Value | $209.1 |
| 1Y Return | 94.4% |
| Revenue | $37.7B |
| Free Cash Flow | ($1,563.0M) |
| Revenue Growth | 9.4% |
| FCF margin | (4.1%) |
| Gross margin | 19.5% |
| ROIC | 0.7% |
| Total Debt to Equity | 0.0% |
Investment Thesis
GE Vernova, with a $159.2B market cap and a quality rating of 6.2, has delivered an impressive 1Y return of 94.4%. The company’s revenue growth 9.4% signals momentum, though negative free cash flow (–$1,563M) and a low gross margin 19.5% highlight operational challenges. Its intrinsic value $209.1 points to significant upside potential.
Key Catalysts
- Strong 1Y performance
- Revenue growth outpaces sector average
- Zero total debt to equity, indicating financial flexibility
Risk Factors
- Negative free cash flow margin (–4.1%)
- Low ROIC 0.7%
- Thin gross margin may constrain profitability
Constellation Energy Corporation (CEG)
| Metric | Value |
|---|---|
| Market Cap | $118.4B |
| Quality Rating | 6.3 |
| Intrinsic Value | $254.3 |
| 1Y Return | 43.9% |
| Revenue | $24.8B |
| Free Cash Flow | ($2,398.0M) |
| Revenue Growth | 11.0% |
| FCF margin | (9.7%) |
| Gross margin | 31.2% |
| ROIC | 12.1% |
| Total Debt to Equity | 60.2% |
Investment Thesis
Constellation Energy, valued at $118.4B with a quality rating of 6.3, has achieved a strong 1Y return of 43.9%. Revenue growth 11.0% and a high ROIC 12.1% reflect efficient capital deployment. However, negative free cash flow (–$2,398M) and a moderate gross margin 31.2% warrant caution.
Key Catalysts
- Double-digit revenue growth
- High ROIC supports value creation
- Intrinsic value $254.3 suggests undervaluation
Risk Factors
- Negative free cash flow margin (–9.7%)
- Moderate gross margin
- Debt to equity 60.2% could impact flexibility
The Southern Company (SO)
| Metric | Value |
|---|---|
| Market Cap | $103.6B |
| Quality Rating | 6.4 |
| Intrinsic Value | $66.7 |
| 1Y Return | 5.0% |
| Revenue | $28.9B |
| Free Cash Flow | $1,392.0M |
| Revenue Growth | 9.4% |
| FCF margin | 4.8% |
| Gross margin | 49.1% |
| ROIC | 10.9% |
| Total Debt to Equity | (57.6%) |
Investment Thesis
Southern Company, with a $103.6B market cap and quality rating of 6.4, offers a stable profile with a 1Y return of 5.0%. Revenue growth 9.4% and a strong gross margin 49.1% support its defensive positioning. Intrinsic value $66.7 aligns with its reputation for steady performance.
Key Catalysts
- Consistent revenue growth
- High gross margin
- Attractive ROIC 10.9%
Risk Factors
- Negative total debt to equity (–57.6%)
- Modest free cash flow margin 4.8%
- Limited upside in stable market conditions
Duke Energy Corporation (DUK)
| Metric | Value |
|---|---|
| Market Cap | $96.6B |
| Quality Rating | 5.9 |
| Intrinsic Value | $95.4 |
| 1Y Return | 9.9% |
| Revenue | $31.3B |
| Free Cash Flow | ($582.0M) |
| Revenue Growth | 4.1% |
| FCF margin | (1.9%) |
| Gross margin | 61.2% |
| ROIC | 5.2% |
| Total Debt to Equity | 170.0% |
Investment Thesis
Duke Energy, with a $96.6B market cap and quality rating of 5.9, has posted a 1Y return of 9.9%. While revenue growth 4.1% is modest, its gross margin 61.2% is sector-leading. The intrinsic value $95.4 and high debt to equity 170.0% highlight both opportunity and risk.
Key Catalysts
- High gross margin
- Stable revenue base
- Intrinsic value near current price
Risk Factors
- Negative free cash flow margin (–1.9%)
- High leverage (debt to equity: 170.0%)
- Moderate ROIC 5.2%
National Grid plc (NGG)
| Metric | Value |
|---|---|
| Market Cap | $73.9B |
| Quality Rating | 6.0 |
| Intrinsic Value | $176.6 |
| 1Y Return | 20.3% |
| Revenue | £38.2B |
| Free Cash Flow | (£2,795.0M) |
| Revenue Growth | (4.7%) |
| FCF margin | (7.3%) |
| Gross margin | 62.6% |
| ROIC | 9.0% |
| Total Debt to Equity | 125.4% |
Investment Thesis
National Grid, with a $73.9B market cap and quality rating of 6.0, has delivered a solid 1Y return of 20.3%. Despite negative revenue growth (–4.7%), its gross margin 62.6% and intrinsic value $176.6 support its position as a defensive utility.
Key Catalysts
- High gross margin
- Intrinsic value well above market cap
- Stable sector presence
Risk Factors
- Negative free cash flow margin (–7.3%)
- Declining revenue
- High debt to equity 125.4%
American Electric Power Company, Inc. (AEP)
| Metric | Value |
|---|---|
| Market Cap | $64.3B |
| Quality Rating | 6.7 |
| Intrinsic Value | $7,689.9 |
| 1Y Return | 24.1% |
| Revenue | $6,025.8B |
| Free Cash Flow | $2,165.5M |
| Revenue Growth | 30,640.5% |
| FCF margin | 0.0% |
| Gross margin | 0.1% |
| ROIC | 1,555.0% |
| Total Debt to Equity | 8.7% |
Investment Thesis
AEP, with a $64.3B market cap and quality rating of 6.7, shows an extraordinary 1Y return 24.1% and revenue growth 30,640.5%, though the latter may reflect a data anomaly. Its intrinsic value $7,689.9 and high ROIC 1,555.0% suggest strong fundamentals, but the gross margin 0.1% and FCF margin 0.0% require scrutiny.
Key Catalysts
- Exceptional revenue growth
- High ROIC
- Intrinsic value far exceeds market cap
Risk Factors
- Extremely low gross margin
- Data anomalies in financials
- Limited free cash flow margin
Vistra Corp. (VST)
| Metric | Value |
|---|---|
| Market Cap | $64.0B |
| Quality Rating | 7.7 |
| Intrinsic Value | $93.0 |
| 1Y Return | 50.9% |
| Revenue | $19.7B |
| Free Cash Flow | $3,111.0M |
| Revenue Growth | 40.4% |
| FCF margin | 15.8% |
| Gross margin | 38.2% |
| ROIC | 18.1% |
| Total Debt to Equity | 373.1% |
Investment Thesis
Vistra Corp., with a $64.0B market cap and sector-leading quality rating 7.7, has posted a 1Y return of 50.9%. Revenue growth 40.4%, high free cash flow $3,111M, and ROIC 18.1% position it as a top growth utility. Its intrinsic value $93.0 supports further upside.
Key Catalysts
- Strong revenue and FCF growth
- Highest quality rating in the group
- High ROIC 18.1%
Risk Factors
- High debt to equity 373.1%
- Moderate gross margin 38.2%
- Leverage risk in expansion
Sempra (SRE)
| Metric | Value |
|---|---|
| Market Cap | $60.0B |
| Quality Rating | 4.5 |
| Intrinsic Value | $52.7 |
| 1Y Return | 10.3% |
| Revenue | $13.3B |
| Free Cash Flow | ($706.0M) |
| Revenue Growth | 0.8% |
| FCF margin | (5.3%) |
| Gross margin | 38.2% |
| ROIC | 4.1% |
| Total Debt to Equity | 100.8% |
Investment Thesis
Sempra, with a $60.0B market cap and quality rating of 4.5, offers modest growth (1Y return: 10.3%, revenue growth: 0.8%). Its gross margin 38.2% and intrinsic value $52.7 suggest a stable, if unspectacular, profile. Negative free cash flow (–$706M) and moderate ROIC 4.1% are notable.
Key Catalysts
- Stable gross margin
- Consistent sector presence
- Intrinsic value near market price
Risk Factors
- Negative free cash flow margin (–5.3%)
- Moderate ROIC
- Debt to equity 100.8%
Dominion Energy, Inc. (D)
| Metric | Value |
|---|---|
| Market Cap | $50.0B |
| Quality Rating | 5.2 |
| Intrinsic Value | $65.7 |
| 1Y Return | 0.9% |
| Revenue | $15.8B |
| Free Cash Flow | ($1,504.0M) |
| Revenue Growth | 8.4% |
| FCF margin | (9.5%) |
| Gross margin | 34.7% |
| ROIC | 9.1% |
| Total Debt to Equity | (47.3%) |
Investment Thesis
Dominion Energy, with a $50.0B market cap and quality rating of 5.2, has a 1Y return of 0.9%. Revenue growth 8.4% and gross margin 34.7% are moderate, while negative free cash flow (–$1,504M) and intrinsic value $65.7 suggest limited upside.
Key Catalysts
- Moderate revenue growth
- Intrinsic value above market cap
- Stable sector allocation
Risk Factors
- Negative free cash flow margin (–9.5%)
- Modest gross margin
- Negative total debt to equity (–47.3%)
Portfolio Diversification Insights
This watchlist spans the utilities sector, balancing growth-oriented names (Vistra, Constellation, GE Vernova) with defensive stalwarts (NextEra, Southern Company, National Grid).
- Sector Allocation: All picks are utilities, but exposure varies between renewables, transmission, and diversified energy.
- Risk Balance: High-growth stocks are offset by stable, cash-generative companies.
- Geographic Spread: Includes US and UK-based utilities, reducing single-market risk.
Market Timing & Entry Strategies
Utilities often outperform during economic uncertainty due to their essential services.
- Entry Points: Consider dollar-cost averaging to mitigate timing risk.
- Valuation Signals: Use ValueSense’s intrinsic value tools to identify undervalued entry points[1][4].
- Catalyst Monitoring: Track earnings releases and regulatory changes for optimal timing.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!
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FAQ Section
Q1: How were these stocks selected?
Stocks were chosen using ValueSense’s AI-powered screener and intrinsic value calculator, focusing on quality ratings, financial health, and sector relevance[1][2].
Q2: What's the best stock from this list?
Vistra Corp. (VST) stands out with the highest quality rating 7.7, strong revenue growth, and robust free cash flow, making it a top candidate for further analysis.
Q3: Should I buy all these stocks or diversify?
Diversification within the utilities sector can reduce risk, but investors may benefit from combining these picks with other sectors for broader portfolio balance.
Q4: What are the biggest risks with these picks?
Key risks include high leverage (debt to equity), negative free cash flow in some companies, and sector-specific regulatory changes.
Q5: When is the best time to invest in these stocks?
Utilities tend to perform well during market volatility; consider using intrinsic value signals and monitoring sector catalysts for optimal entry points.