Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Electric Utilities industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Electric Utilities Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Electric Utilities Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Electric Utilities industry for Thursday, December 11, 2025. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electric Utilities industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

FirstEnergy Corp.’s Value Grade

Value Grade:

FirstEnergy Corp., together with its subsidiaries, engages in the generation, distribution, and transmission of electricity in the United States. It operates through Distribution, Integrated, and Stand-Alone Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities. It operates 252,244 distribution line miles and 24,143 transmission line miles, including overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits. The company serves customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York. FirstEnergy Corp. was incorporated in 1996 and is headquartered in Akron, Ohio.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

FirstEnergy Corp. has a Value Score of 61, which is considered to be undervalued.

When you look at FirstEnergy Corp.’s price-to-sales ratio at 1.79 compared to the industry median at 2.62, this company has a lower price relative to revenue compared to its peers. This could make FirstEnergy Corp.’s stock more attractive for value investors.

FirstEnergy Corp.’s price-earnings ratio is 19.20 compared to the industry median at 20.25. This means it has a lower share price relative to earnings compared to its peers. This could make FirstEnergy Corp. more attractive for value investors.

Now, let’s assess FirstEnergy Corp.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.1, when compared to the industry median of 11.4, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. FirstEnergy Corp.’s shareholder yield is higher than its industry median ratio of 2.80%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. FirstEnergy Corp.’s price-to-book ratio is higher than its industry median ratio of 1.87. This could make FirstEnergy Corp. less attractive to investors looking for a new addition to their portfolio.

Fortis Inc.’s Value Grade

Value Grade:

Fortis Inc. operates as an electric and gas utility company in Canada, the United States, and the Caribbean countries. It generates, transmits, and distributes electricity to approximately 452,000 retail customers in southeastern Arizona, including the greater Tucson metropolitan area; and 105,000 retail customers in southeastern Arizona with an aggregate capacity of 3,442 megawatts (MW). The company also sells wholesale electricity to other entities in the western United States; owns gas-fired and hydroelectric generating capacity totaling 43 MW; and distributes natural gas to approximately 1,0,000 residential, commercial, and industrial customers in British Columbia, Canada. In addition, it owns and operates the electricity distribution system that serves approximately 592,000 customers in southern and central Alberta; owns four hydroelectric generating facilities with a combined capacity of 225 MW; and provides operation, maintenance, and management services to hydroelectric generating facilities. Further, the company distributes electricity in the island portion of Newfoundland and Labrador with an installed generating capacity of 145 MW; and on Prince Edward Island with a generating capacity of 90 MW. Additionally, it provides integrated electric utility service to approximately 70,000 customers in Ontario; approximately 277,000 customers in Newfoundland and Labrador; approximately 35,000 customers on Grand Cayman, Cayman Islands; and approximately 18,000 customers on certain islands in Turks and Caicos. It also owns and operates approximately 91,100 circuit Kilometers (km) of distribution lines; and approximately 51,700 km of natural gas pipelines. Fortis Inc. was founded in 1885 and is headquartered in Saint John's, Canada.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Fortis Inc. has a Value Score of 63, which is considered to be undervalued.

Fortis Inc.’s price-earnings ratio is 20.8 compared to the industry median at 20.3. This means that it has a higher price relative to its earnings compared to its peers. This makes Fortis Inc. less attractive for value investors.

Fortis Inc.’s price-to-book ratio is higher than its peers. This could make Fortis Inc. less attractive for value investors when compared to the industry median at 1.87.

You can read more about Fortis Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

PG&E; Corporation’s Value Grade

Value Grade:

PG&E; Corporation, through its subsidiary, Pacific Gas and Electric Company, engages in the sale and delivery of electricity and natural gas to customers in northern and central California, the United States. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic sources. The company owns and operates interconnected transmission lines; electric transmission substations, distribution lines, switching and distribution substations; and natural gas transmission, storage, and distribution system consisting of distribution pipelines, backbone and local transmission pipelines, and various storage facilities. It serves residential, commercial, industrial, and agricultural customers, as well as natural gas-fired electric generation facilities. PG&E; Corporation was incorporated in 1905 and is based in Oakland, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

PG&E; Corporation has a Value Score of 67, which is considered to be undervalued.

PG&E; Corporation’s price-earnings ratio is 12.7 compared to the industry median at 20.3. This means that it has a lower price relative to its earnings compared to its peers. This makes PG&E; Corporation more attractive for value investors.

PG&E; Corporation’s price-to-book ratio is higher than its peers. This could make PG&E; Corporation less attractive for value investors when compared to the industry median at 1.87.

You can read more about PG&E; Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Electric Utilities Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Electric Utilities stocks as well as other industrys.

Choosing Which of the 3 Best Electric Utilities Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• FirstEnergy Corp. stock has a Value Grade of B.
• Fortis Inc. stock has a Value Grade of B.
• PG&E; Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Electric Utilities industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Electric Utilities Stocks

Want to learn more about Electric Utilities stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Electric Utilities Stocks for Thursday, December 11
• Is NextEra Energy, Inc. (NEE) Overvalued?
• Is NextEra Energy, Inc. (NEE) Overvalued?
• Is NextEra Energy, Inc. (NEE) Overvalued?

AAII Disclaimer

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