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Many investors don't think of energy stocks as long-term investments, since they're often pegged to cyclical commodity prices and heavily exposed to macro headwinds. Yet energy demand is expected to keep rising as populations grow and economies expand.

To capitalize on that trend, investors should focus on well-run companies with the scale and diversification to weather the energy sector's near-term volatility. These three stocks make the cut: GE Vernova (NYSE: GEV), Vistra (NYSE: VST), and Nextpower (NASDAQ: NXT).

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General Electric spun off its energy division, GE Vernova, in April 2024. GE Vernova's stock has soared more than 720% since its market debut, and it could surge even higher over the next decade as its core businesses expand.

In 2025, over half of GE Vernova's orders came from its Power business, which produces gas turbines for combined-cycle plants, steam turbines for coal, gas, and nuclear plants. It also services nuclear power plants. Nearly a third of its orders came from its Electrification business, which supplies transformers, breakers, substations, and high-voltage direct current systems. It also provides services for entire electrical grids. The rest of its orders came from its smaller Wind business, which produces onshore and offshore turbines.

GE Vernova's Power and Electrification orders grew by double digits last year, driven by the expansion of the power-hungry AI, cloud, and data center markets. That growth offset the slower growth of its Wind segment, which struggled with supply chain constraints and delays.

From 2025 to 2028, analysts expect GE Vernova's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 16% and 59%, respectively, as the AI data center boom continues, more countries restart their nuclear energy projects, and it right-sizes its Wind business. With an enterprise value of $271 billion, GE Vernova doesn't seem expensive at 29 times next year's adjusted EBITDA -- and it should remain one of the safest ways to profit from the surging demand for more electricity.

Vistra, the largest power generation and retail electricity provider in the United States, operates natural gas, nuclear, coal, solar, and battery energy storage facilities. Its retail subsidiaries (including TXU Energy, Dynegy, Homefield Energy, Ambit, and other regional leaders) sell electricity to approximately five million residential, commercial, and industrial customers.

Over the past several years, Vistra has expanded by acquiring more nuclear energy and natural gas plants. It now has a combined capacity of 44 GW, enough to power up to 22 million homes, and aims to achieve net-zero carbon emissions by 2050. It recently secured a 20-year deal to supply Meta Platforms' data centers with thousands of megawatts of electricity, and will likely lock in even more hyperscalers as the AI market expands.

From 2025 to 2028, analysts expect Vistra's revenue and adjusted EBITDA to grow at CAGRs of 15% and 16%, respectively. With an enterprise value of $72.6 billion, it trades at just nine times next year's adjusted EBITDA. So even though its stock has already rallied about 585% over the past three years, it still looks undervalued relative to its long-term growth potential.

Nextpower is the world's largest producer of solar trackers, which automatically tilt solar panels to follow the sun throughout the day, maximizing efficiency. It also provides solar energy plants with electrical balance-of-system (eBOS) tools, robotics systems, and AI-powered software for weather prediction, automated operations, and performance optimization.

Nextpower generates most of its revenue by selling its solar trackers in North America, but it's expanding its other smaller businesses to increase the stickiness of its ecosystem. Over the next decade, the expansion could transform it into a "one-stop shop" for solar power solutions. Its backlog grew 17% to $5.25 billion at the end of fiscal 2026 (which ended this March) as more companies ramped up their renewable energy investments.

From fiscal 2026 to fiscal 2029, analysts expect Nextpower's revenue and adjusted EBITDA to both grow at a 13% CAGR as it works through those pending orders. With an enterprise value of $18.2 billion, its stock still looks reasonably valued at 20 times this year's adjusted EBITDA -- even though it's already risen more than 230% over the past three years.

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Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends GE Aerospace, GE Vernova, Meta Platforms, and Nextpower. The Motley Fool has a disclosure policy.

3 Brilliant Energy Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool