Utilities Work Either Way: Utility stocks do well when the economy is deteriorating and the “best of them” work even when the economy is doing fine, Cramer said on Tuesday.
See Also: Best Utility Stocks Right Now
The stock picker recommended buying shares of “steady-eddy” utility companies to portfolios, premised primarily on their dependability. He also underlined the “bountiful dividends” these companies offer, which could cushion any potential downside.
Cramer’s Two Utility Picks: Cramer recommended Constellation Energy Corp. (NYSE:CEG) and Sempra (NYSE:SRE) from among the sector.
Nuclear-powered electric utility Constellation Energy was spun-off from Exelon Corp. (NASDAQ:EXC) earlier this year and began trading as a standalone public company on Jan. 19.
Offering his twin investment thesis on the stock, Cramer said nuclear energy is the best option for carbon-free energy production in a reasonable timeframe and that funds looking for ESG plays will pile into it.
Cramer’s preference for Sempra stems from a trio of factors — its wide natural gas pipeline network, reasonable price and CEO Jeff Martin’s strong leadership.
Constellation Energy has gained 118% since its mid-January listing and Sempra has added a little over 27% year-to-date.
Price Action: Constellation Energy ended Tuesday’s session down 0.04%, at $90.84, and Sempra closed 0.53% lower, at $164.66, according to Benzinga Pro data.
Read Next: Hunting For Dividend Yield In Utilities? This Small Cap Name Can Light Up Your Portfolio
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