Want Monthly Passive Income?
Explore Asset Leasing by Grip
Investing Related

All About The US Power Sector: What It Is & Top Energy Stocks For 2021

Looking to buy US power sector stocks? Read this blog to know all about the US power sector shares. Get a list of the top 10 best US energy stocks for 2021. Find out how you can invest in US stocks from India using Cube Wealth.
May 24, 2021

Schedule a call based on your convenience. And get an expert to help you invest.

Top 5 Reasons To Try Our Powerful Investment App!

  • High Quality MFs
  • Top Notch Stock Advisory
  • Expert Financial Advisors
  • Alternative Investments
  • Low Minimum Investments

Just like any major economy in the world, the US power sector is a volatile yet crucial industry that's responsible for the production and distribution of energy to residential, commercial, and industrial entities. 

Moreover, the US energy sector is not limited to a single resource. There are several companies that leverage natural resources, manmade resources, or a combination of both to generate energy. 

In this blog, we'll take a  look at the US power sector, the major players involved, historical data, the top US energy stocks, and how to invest in US power sector stocks for as low as $1 using Cube. 

What Is The US Power Sector?

The US power sector broadly includes the production, supply, and sales of electricity within the US to individual households and companies. The US also exports power to other countries like Canada and Mexico. 

The US is the second-largest producer and consumer of electricity behind China and ahead of India. It has an energy/power generating capacity of approximately 1.12 billion kilowatts (kW).

US energy companies primarily used these resources to generate power in 2020:

Resource

Percentage

Natural Gas

40%

Coal 

19%

Nuclear

20%

Renewable

20%

Source: US Energy Information Administration

Furthermore, US energy companies sold approximately 3.7 trillion kWh of electricity to retail consumers in 2020. The major players in the US power sector include (but are not limited to):

  • ExxonMobil
  • Chevron
  • Duke Energy
  • Southern Company
  • American Electric Power

Explore Top US Stocks On Cube

The US power sector is volatile because it is exposed to several factors that can deplete or completely bring electricity production to a standstill. Some of these factors include:

  • Low electricity demand
  • Mandated requirement of renewable energy production
  • Air pollution regulations
  • Natural disasters (floods, cyclones, hurricanes, etc)
  • Falling natural gas prices

The Texas Power Crisis of 2021 is an example of how power grids can be affected by natural disasters. 

However, the US power sector remains pivotal to the daily functioning of practically every other industry in the US. 

Furthermore, it is home to legacy companies like Baltimore Gas and Electric (owned by Exelon Corporation) that have survived for over 2 centuries. 

Read this blog to know more about the benefits of investing in US stocks from India

Top 10 US Power Sector Stocks For 2021

Company

Ticker

Market Cap

Share Price

Exxon Mobil Corporation

XOM

$249.44 Billion

$58.92

Chevron Corporation

CVX

$200.75 Billion

$104.12

NextEra Energy Inc

NEE

$146.01 Billion

$74.44

Duke Energy Corporation

DUK

$79.122 Billion

$102.86

ConocoPhillips 

COP

$75.095B

$55.65

The Southern Company

SO

$68.155 Billion

$64.38

Dominion Energy Inc

D

$63.094 Billion

$78.23

Enterprise Products Partners L.P.

EPD

$51.811 Billion

$23.71

Exelon Corporation

EXC

$44.794 Billion

$45.84

American Electric Power Company, Inc.

AEP

$43.303 Billion

$86.65

Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of US' most popular power sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.

Psst… you can buy US stocks from India for as low as $1

Past Trajectory Of Investment Returns In Power Sector

The S&P 500 Energy index tracks 23 of the best US power sector stocks with a total market capitalization of ~$961.15 billion. Here's the historical performance of the index:

Timeline

Returns

QTD

5.41%

YTD

36.26%

1 Year

34.04%

3 Years

-12.37%

5 Years

-4.56%

Source: S&P Global

The Dow Jones U.S. Oil & Gas Index tracks 33 of the best Oil & Gas shares in the US with a total market cap of ~$1038.73 billion.

Timeline

Returns

QTD

5.74%

YTD

36.06%

1 Year

36.53%

3 Years

-12.93%

5 Years

-4.88%

Source: S&P Global

How To Invest In US Power Sector Stocks From India?

The Cube Wealth app gives you access to 3000+ US stocks including energy sector shares of companies like Exxon Mobil Corporation, Chevron Corporation, NextEra Energy Inc, and more. 

Cube simplifies that investment process by helping you:

  • Open a US brokerage account with Cube's US brokerage partner, DriveWealth
  • Get buying and selling advice from RIA, Rick Holbrook
  • Invest in US stocks for as low as $1 

Registered Investment Advisor (RIA) Rick Holbrook has been in equities research and portfolio management for over 40 years. He currently manages approximately ~$130 million for HNIs. 

You can access RIA Rick Holbrook’s expert advice using the Cube Wealth app. Here's how you can get started:

1. Download Cube Wealth

2. Complete your KYC

3. Finish LRS formalities

4. Transfer money to brokerage account

5. Invest in US energy stocks

Get Cube For Free to know more about investing in the best US power sectors stocks from India. 

Watch this video to know more about US stock advice on Cube Wealth



Shriram Shekhar
Shriram is a Consultant at CubeWealth. He has developed cutting edge IT products for over 2 years before turning to his passion for the written word. His love for philosophy, developing products, and empowering people through quality content is what got him to CubeWealth.

Top 5 Reasons To Try Our Powerful Investment App!

Schedule a call based on your convenience. And get an expert to help you invest.

  • High Quality Mutual Funds
  • Top Notch Stock Advisory
  • Invest in U.S. Stocks
  • Alternative Investments
  • Low Minimum Investments
Try Cube’s Exclusive Wealth Concierge Service! We offer a 10-minute portfolio analysis and set up service to select users.

Want the best
investment blog delivered straight to your inbox?

Thank you for joining our mailing list!
Oops! Something went wrong while submitting the form.

Similar Posts

SIP Posts

Calculate your
SIP returns

Calculate your
Lumpsum returns

Grow your money without wasting time

on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!