We recently published a list of 11 High Growth Utility Stocks To Invest In Now. In this article, we are going to take a look at where New Fortress Energy Inc. (NASDAQ:NFE) stands against other best high growth stocks to invest in.

Power and utilities companies are facing a tough challenge in making clean, renewable energy more affordable and abundant. With electricity demand growing due to factors like more manufacturing, electrification, and increased data center use, utilities need to quickly expand their infrastructure while keeping energy reliable, rates low, and meeting decarbonization targets. While financing this expansion may be difficult with higher capital costs, there are opportunities to tap into funding from new initiatives like the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA).

According to Deloitte, data centers alone could triple their energy use by 2030, while EV sales and heat pump installations are rising steadily with support from state and federal incentives. To keep up, utilities are focusing on power generation, and solar is leading the way with massive growth. However, natural gas is still the biggest player, though its share might dip next year. Utilities are investing more than ever, with roughly $174 billion spent in 2024, to upgrade and expand the grid. At the same time, they are dealing with supply chain delays, rising costs from extreme weather, and slower regulatory processes. All of this means consumers are likely to see higher electricity bills in the coming years, with wholesale prices expected to rise nearly 20% between 2025 and 2028.

Spending on renewables is on the rise as well, and it is expected to top $25 billion in 2025 and hit $31 billion by 2027. That growth is backed by falling tech costs, government support, and strong demand from both consumers and corporations. Still, connecting faraway renewable sources to where people actually live will require a lot more transmission lines. Natural gas is crucial, especially as backup for renewables and to meet surging data center demand. Long-term gas investments are focused on safety, infrastructure upgrades, and newer uses like hydrogen blending.

Utility stocks, usually seen as slow movers, have been on a surprising hot streak this past year. With big gains in utility stocks and ETFs, it is becoming harder for investors to find affordable, dividend-paying utility stocks. According to Brent Coggins from Triad Wealth Partners, the strategy has shifted, and investors cannot just chase dividends anymore. Now, it is about finding utility companies that are ready to grow, adapt to climate demands, and expand nuclear capabilities. Basically, utilities are looking more like growth stocks than the traditional income plays they used to be. Recent market jitters, like the sell-off caused by Chinese AI startup DeepSeek, temporarily dragged down both AI-related tech and utility stocks. However, analysts like Julien Dumoulin-Smith from Jefferies still recommend focusing on stable, lower-risk names that pay solid dividends. Meanwhile, JPMorgan sees long-term potential in natural gas utilities too, despite the recent dip. Analyst Jeremy Tonet believes demand for natural gas, especially from power-hungry data centers, is not going away anytime soon.

With that market outlook in mind, let’s take a look at some high-growth stocks in the utility sector.

A cutaway view of a modern energy infrastructure and its power generation facilities.

Our Methodology 

For this article, we used the Finviz screener to filter out utility stocks with 5-year revenue growth exceeding 20%, verifying this data through additional sources. We selected 11 stocks with the highest revenue growth manually. We have also mentioned the number of hedge fund holders in each firm as per Insider Monkey's Q4 2024 database. The stocks are ranked in ascending order based on the average 5-year revenue growth.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

New Fortress Energy Inc. (NASDAQ:NFE)

Number of Hedge Fund Holders: 34

Average 5-Year Revenue Growth: 94.98%

New Fortress Energy Inc. (NASDAQ:NFE) is a New York-based company that provides natural gas and power solutions worldwide. NFE builds gas infrastructure and leases LNG carriers and floating storage units. The company operates facilities in Jamaica, Puerto Rico, Mexico, Brazil, and the United States, aiming to make cleaner energy more accessible and reliable. It is one of the best high growth stocks to invest in.

On March 28, Stifel analysts maintained a Buy rating on New Fortress Energy Inc. (NASDAQ:NFE) with a $16 price target. The analysts observed that NFE sold its Jamaican operations to Excelerate Energy for $1.055 billion, a move that is expected to help reduce its $9.5 billion debt. While the stock price dropped after the announcement, Stifel sees it as a good buying opportunity, believing the sale will improve the company’s financial stability and open up future growth prospects.

In Q4 2024, New Fortress Energy Inc. (NASDAQ:NFE) outperformed expectations with adjusted EBITDA of $313 million, surpassing the forecast of $200-$220 million.  A major achievement was the completion of NFE’s Fast LNG asset, which is now operational and will secure future LNG supply. The company also extended its gas supply contract in Puerto Rico, aiming to reduce emissions and cut costs. In Brazil, its power plant projects are progressing well, and they are positioned to take advantage of upcoming power auctions.

According to Insider Monkey’s Q4 data, 34 hedge funds reported owning stakes in New Fortress Energy Inc. (NASDAQ:NFE), compared to 17 funds in the prior quarter. David Rosen’s Rubric Capital Management was the largest stakeholder of the company, with 15 million shares valued at $226.8 million.

Overall, NFE ranks 2nd among the high growth utility stocks to invest in now. While we acknowledge the potential of NFE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NFE but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

 

Disclosure: None. This article is originally published at Insider Monkey.