The markets are still strong, but signs of investor worry are creeping in. The government shutdown, fears of an AI bubble, and concerns about lower employment are affecting investors’ buys and sells. Interestingly, according to Factset, defensive sectors such as Consumer Staples and Utilities are highly likely to lead the S&P in October 2025. That marks the first time since June 2022 that investors have flocked to defensive stocks so definitively.
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Interested in learning about energy stock picks? Here are three to consider, with each having netted a Strong Buy consensus rating from Wall Street analysts.
Vistra Energy (VST)
Vistra Energy (VST) is an integrated retail electricity and power generation company. Year-to-date, VST has increased by 46.6%.
Last week, TD Cowen analyst Shelby Tucker initiated coverage of the U.S. power and utilities sector. Tucker named Vistra as one of Cowen’s top picks, noting the surging demand for electricity for data centers. In fact, the analyst called the current situation, in which utility assets need upgrading and data centers are growing at a clip, a “once in a generation opportunity” for electric utilities.
VST stock has received 13 Buy and 1 Hold ratings in the past three months. The analyst consensus forecast on Vistra Energy is $235.71, implying an upside of 17.1%.
Constellation Energy Corporation (CEG)
Constellation Energy Corporation (CEG) generates and sells electricity in the United States. Year-to-date, CEG stock has risen by 73.5%.
Today, JP Morgan analyst Jeremy Tonet raised his price target on CEG from $391 to $422, reiterating a Buy rating on the stock. The analyst predicts that Constellation Energy’s commercial momentum will extend into the future.
CEG stock has a Strong Buy analyst consensus rating, with 10 Buy and 3 Hold ratings. Constellation Energy’s analyst consensus price target is $386.92, denoting 0.11% upside from current levels.
PG&E (PCG)
PG&E, or Pacific Gas and Electric Company (PCG), generates, transmits, distributes, and sells electricity and natural gas. Although PCG stock has fallen 18.2% year-to-date, TD Cowen has named it a top pick, along with Vistra Energy (see above). In addition, last week, BMO Capital raised PCG’s price target from $23 to $25 and maintained a Buy rating on the stock. BMO analyst James Thalacker believes PG&E is trading at a deep discount, and expects multiple expansion in the future.
PCG stock boasts a Strong Buy analyst consensus rating, with 8 Buys and 2 Holds. The PCG 12-month stock forecast is $20.95, implying an upside of 27.6%.
Other Energy Stocks to Consider
Many other utility and energy stocks show promise. Here is a list of energy stock to consider; click on any one to further research the stock.
(AEP), (DUK), (EIX), (NEE), (SO), (XEL), (ATO), (PNW), (WEC)