10 Best Alternative Energy Stocks To Buy According to Hedge Funds

3. Constellation Energy Corporation (NASDAQ:CEG)  

Number of Hedge Fund Holders: 71  

Constellation Energy Corporation (NASDAQ:CEG) supplies natural gas and energy products and services to residential, commercial, and industrial clients across North America. Constellation Energy Corporation (NASDAQ:CEG) is a key player in nuclear power and operates one of the largest fleets of nuclear plants in the US. Around 90% of the company’s annual energy output is derived from carbon-free sources. Constellation Energy Corporation (NASDAQ:CEG) has set a goal to produce 95% carbon-free electricity by 2030.

On September 20, Constellation Energy Corporation (NASDAQ:CEG) announced the signing of a 20-year power purchase agreement with Microsoft that will pave the way for the launch of the Crane Clean Energy Center (CCEC) and the restart of Three Mile Island Unit 1, a nuclear power plant that was shut down in 2019 due to economic reasons. The agreement is Constellation Energy Corporation’s (NASDAQ:CEG) largest-ever power purchase agreement and will restore the plant to service, adding approximately 835 megawatts of carbon-free energy to the grid.

The plant will provide a reliable source of carbon-free energy to power Microsoft’s data centers in the PJM region and will be a significant contributor to the state’s energy mix, providing a reliable source of carbon-free energy and supporting the state’s economic development. The project is expected to be online in 2028 and will operate for at least 20 years. In its Q2 investor letter, ClearBridge stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its Q2 2024 investor letter:

“On a regional basis, the U.S. and Canada was the top contributor for quarter, with U.S. electric utility Constellation Energy Corporation (NASDAQ:CEG) and U.S. rail operator CSX the lead performers. Constellation Energy is primarily a nuclear generation company and is the largest producer of carbon-free electricity in the U.S., serving states including New York, Illinois, Maryland, Pennsylvania and New Jersey. The company’s combined generation capacity is more than 32 GW and 90% of annual output is carbon free. Constellation has been a beneficiary of AI and subsequent power demand as its 24/7 base load nuclear generation can get premium contracts.”