Top 3 Utilities Stocks Powering Up as Recession Fears Rise

Core Insights - Utilities stocks are considered a safe investment during market volatility due to consistent demand for essential services [1] - As recession fears rise in early 2025, utilities stocks, particularly the Utilities Select Sector SPDR ETF, have outperformed the S&P 500 [2] - Analysts suggest that certain utilities firms are positioned for potential growth, making them attractive for defensive investors [3] California Water Service Group (CWT) - CWT reported over 30% year-over-year growth in operating revenue, exceeding $1 billion, with diluted EPS tripling [4] - The company invested$471 million in infrastructure to address climate-related challenges and increased demand [4] - Revenue growth was attributed to higher rates and consumption, resulting in profit margins soaring to 18% [5] Consolidated Water Co. (CWCO) - CWCO shares have declined about 7% over the past year, attributed to disappointing third-quarter earnings [7] - Recent completion of major construction projects and increased water sales in Grand Cayman may signal potential recovery [8] - The company received a new concession for exclusive rights to produce potable water in Grand Cayman, which could enhance future performance [8] Vistra Corp. (VST) - VST experienced a significant share price increase of 79% over the last 12 months, despite a recent sell-off [11] - The company's interest in nuclear power aligns with growing demand from data centers and AI companies [12] - Analysts are optimistic about VST, with a consensus price target suggesting nearly 44% upside potential [13]