Citi has highlighted elevated 30-day implied volatility in select U.S. utility stocks as the third quarter of 2026 approaches its end, with some names diverging from broader sector trends.
The bank’s analysis identified PG&E Corp, NRG Energy, Constellation Energy, Edison International and Ormat Technologies as utilities with above-average implied volatility. California-based utilities faced heightened volatility amid legislative developments, while independent power producers contended with policy uncertainty tied to data center demand and evolving business models. Ormat Technologies is scheduled to host an analyst day, which may contribute to its positioning.
Over the past two weeks, NRG Energy was the only stock in the group to see implied volatility rise, bucking the trend of broad declines across the sector. Most peers experienced reduced volatility, with the largest drops observed in stocks that had started from the highest levels. NET Power and Sempra Energy led declines in volatility, while Evergy remained unchanged.
At the opposite end of the spectrum, Consolidated Edison, Atmos Energy, Evergy, Duke Energy, WEC Energy Group, Southern Company and CMS Energy registered the lowest implied volatility in the group, indicating relatively stable pricing expectations.
The analysis was produced with AI assistance and reviewed by an editor.
