IDACORP, Inc. (NYSE: IDA) is quietly emerging as one of the most compelling growth plays in the utility sector—a space often viewed as stodgy and slow-moving. Trading around $122.77 as of late July, with a forward P/E near 20.8, IDACORP is carving out a unique niche fueled by robust regional growth dynamics that savvy investors should not overlook.
Why IDACORP Stands Out in Utilities
Unlike many utilities tethered to mature or declining markets, IDACORP operates primarily in southern Idaho and eastern Oregon—regions experiencing strong demographic and economic tailwinds. Boise and its surrounding areas are among the fastest-growing metropolitan regions in the U.S., driven by affordable living costs and a surge in employment opportunities. This steady population influx translates directly into rising residential electricity demand, a reliable revenue source for IDACORP.
But the story doesn’t stop at residential growth. Commercial and industrial demand is set to explode thanks to monumental projects like Micron’s $15 billion memory fabrication plant and Meta’s new data center, which alone will require approximately 325 megawatts of continuous power. These developments are not just incremental—they represent structural shifts that will anchor demand for years, if not decades.
The Investment Implications
What makes IDACORP particularly attractive is its regulated utility model, which offers a stable revenue base insulated from many of the risks facing unregulated power producers. This stability combined with visible demand growth creates a rare blend of predictability and upside potential. For investors seeking steady cash flow with growth prospects, IDACORP’s profile is compelling.
In contrast to other utilities like Evergy, which we previously highlighted for its defensive characteristics and resilience to macro volatility, IDACORP offers a more pronounced growth angle. While Evergy’s stock has appreciated about 7% since our bullish call in April 2025, IDACORP’s growth is underpinned by tangible infrastructure projects and demographic trends that suggest sustained earnings expansion.
What Investors Should Do Now
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Position for Regional Growth: Utilities linked to high-growth regions are a rare breed. Investors should consider increasing exposure to companies like IDACORP that benefit directly from population and industrial expansion rather than generic utility plays tied to stagnant markets.
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Monitor Infrastructure Developments: Keep a close eye on announcements related to large-scale industrial projects in IDACORP’s service territories. These projects are leading indicators of future demand spikes and can signal when to ramp up or adjust positions.
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Balance with Growth and Stability: While AI and tech stocks may offer explosive upside, IDACORP provides a balanced alternative—combining growth potential with the defensive qualities of regulated utilities. This mix is particularly valuable in volatile markets or rising interest rate environments.
What’s Next for IDACORP?
Looking ahead, the company’s ability to capitalize on the ongoing economic boom in Idaho and Oregon will be critical. Investors should watch for updates on regulatory approvals for capacity expansions and any new commercial contracts. Additionally, with the increasing focus on clean energy and sustainability, how IDACORP integrates renewable energy sources into its grid could become a differentiator.
A recent report from the U.S. Energy Information Administration (EIA) highlights that states like Idaho are among the top in renewable energy growth, which bodes well for utilities positioned to lead this transition. IDACORP’s strategic investments in clean energy could enhance its long-term growth trajectory and appeal to ESG-focused investors.
Hedge Funds and Market Sentiment
Interestingly, IDACORP is not yet a favorite among hedge funds, with holdings dropping from 26 to 24 portfolios in Q1. This relative under-the-radar status could present a buying opportunity before broader institutional interest picks up, especially as the company’s growth story gains more visibility.
Final Takeaway
For investors and advisors, IDACORP represents a differentiated utility investment that goes beyond the typical yield story. It’s a growth story grounded in real economic expansion and infrastructure demand. While it may not have the headline-grabbing volatility of AI stocks or other tech sectors, its blend of stability and growth is precisely what a balanced portfolio needs in today’s uncertain environment.
Actionable Insight: Advisors should consider IDACORP as a core holding within utility allocations, particularly for clients seeking growth without sacrificing income stability. Monitoring regional economic indicators and infrastructure developments will be key to timing additional investments or rebalancing.
By focusing on utilities like IDACORP that are beneficiaries of secular growth trends, investors can position themselves ahead of the curve in a sector often overlooked for its growth potential.
Sources:
- Yahoo Finance (for valuation metrics)
- U.S. Energy Information Administration (EIA) report on renewable energy growth
- Stock Analysis Compilation’s Substack for foundational bullish thesis
- Market data on recent hedge fund holdings from Extreme Investor Network database
Source: IDACORP, Inc. (IDA): A Bull Case Theory