While the market continues to show strength, there are emerging concerns for investors. Issues like potential government shutdowns, worries about an AI bubble, and fears of job losses are affecting trading behaviors. Notably, defensive sectors, particularly consumer staples and utilities, are expected to outperform the S&P in October 2025, as highlighted by FactSet. This marks the first significant movement towards defensive stocks since June 2022.
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If you’re considering energy stocks, here are three worth looking into, all receiving a consensus rating of “Strong Buy” from Wall Street analysts.
Vistra Energy (VST)
Vistra Energy (VST) is a company involved in retail electricity and generation. So far this year, VST has risen by 46.6%.
Recently, TD Cowen analyst Shelby Tucker started covering the U.S. power and utilities sector, identifying Vistra as a leading candidate due to the surging demand for electricity in data centers. Analysts describe the current landscape, necessitating upgrades to utility assets and the rapid growth in data centers, as a “once-in-a-generation opportunity” for utilities.
Over the last three months, VST has garnered 13 buy ratings and 1 hold rating. The consensus estimate for Vistra Energy’s stock suggests it could rise by 17.1%, reaching $235.71.
Constellation Energy Corporation (CEG)
Constellation Energy Corporation (CEG) produces and sells electricity across the United States, with its stock rising 73.5% since the start of the year.
Today, JPMorgan analyst Jeremy Tonet increased his price target for CEG to $422 from $391, maintaining a Buy rating. Analysts believe that Constellation Energy’s commercial momentum will persist moving forward.
The analyst consensus rating for CEG stock stands at “Strong Buy,” featuring 10 buy ratings and 3 holds. The estimated price target for CEG is $386.92, reflecting a slight increase of 0.11% from current levels.
PG&E (PCG)
PG&E (Pacific Gas and Electric) provides electricity and natural gas services. Despite a drop of 18.2% in stock value this year, TD Cowen considers it a leading candidate alongside Vistra Energy. Additionally, BMO Capital raised its price target for PCG from $23 to $25, reaffirming a Buy rating. Analyst James Taracker believes PG&E is undervalued and anticipates future growth.
PCG stock holds a “strong buy” consensus rating, with eight analysts endorsing buys and two indicating holds. The 12-month price forecast for PCG suggests a potential rise of 27.6%, targeting $20.95.
Other energy stocks to consider
Several other utility and energy stocks appear promising. Here’s a list of energy stocks to check out:
(AEP), (DUK), (EIX), (NEE), (SO), (XEL), (ATO), (PNW), (WEC)
