10 Best American Energy Stocks To Buy According to Hedge Funds

2. NextEra Energy Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 69

NextEra Energy, Inc. (NYSE:NEE)’s regulated utility, Florida Power & Light (FP&L), is Florida’s largest rate-regulated utility. The company owns 34 gigawatts of generation and supplies electricity to around 6 million consumer accounts in Florida. About 70% of NextEra’s consolidated operational earnings come from FP&L. The renewable energy division, NextEra Energy Resources, produces and markets electricity across the US and Canada using more than 34 GW of generating capacity from solar, wind, nuclear, and natural gas.

NextEra Energy, Inc. (NYSE:NEE)’s high-quality regulated utility in Florida, combined with its rapidly growing renewable energy business, provides investors with the best of both worlds: a reliable dividend and industry-leading renewable energy growth potential.

NextEra Energy, Inc. (NYSE:NEE)’s third-quarter 2024 results were impressive. Revenue increased by 6% year on year, principally owing to greater adjusted profits per share, significant investments in renewable energy projects, and solid operational performance at both FPL and NextEra Energy Resources. FPL increases the amount of regulatory capital employed by about 9.5% annually. Moreover, NextEra Energy Resources signed incremental framework agreements with two Fortune 50 firms and added roughly 3 gigawatts of new renewables and storage projects to its backlog.

Following the Q3 results, Barclays maintained its Equal Weight rating on NextEra Energy, Inc. (NYSE:NEE) shares and increased its price target from $80 to $82 on October 25, 2024. The company claims that, while maintaining the power demand theory, it surpassed projections for backlog additions.

Rajiv Jain’s GQG Partners was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns nearly 13 million shares worth $1.08 billion as of Q3.

Madison Sustainable Equity Fund stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q3 2024 investor letter:

“The top contributors in the quarter were NextEra Energy, Inc. (NYSE:NEE), Oracle Corporation, Progressive Corporation, Equifax Inc., and United Healthcare. NextEra has continued to perform well given its strong position in the renewable energy space, increasing demand for power, its transmission capabilities, as well as a tailwind from lower interest rates.”