10 Best Bargain Stocks to Buy in May

5. NextEra Energy, Inc. (NYSE:NEE)

Forward P/E as of April 11: ~18.02x

Average Upside Potential: ~34.4%

Number of Hedge Fund Holders: 84

NextEra Energy, Inc. (NYSE:NEE) is engaged in generating, transmitting, distributing, and selling electric power to retail and wholesale customers. Morgan Stanley analyst David Arcaro maintained a “Buy” rating on the company’s stock, setting a price objective of $95.00. The analyst’s rating is backed by factors demonstrating the company’s strategic positioning and capabilities amidst the evolving energy market. NextEra Energy, Inc. (NYSE:NEE)’s extensive expertise and infrastructure throughout renewables, gas, and nuclear energy, together with the strong development pipeline, place it at the forefront in the growing power demand.

NextEra Energy, Inc. (NYSE:NEE)’s emphasis on renewable energy, which is regarded as the most scalable and cost-effective solution, remains in line with the broader industry’s pivot toward sustainable energy sources, says the analyst. Furthermore, the company’s capability to use advanced technology and data analytics across operations bolsters its competitive edge. NextEra Energy, Inc. (NYSE:NEE)’s market position enables it to capitalize on the dynamic renewable energy market. Its experience and scale in developing and operating renewable energy projects provide it with a significant edge.

Madison Investments, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said:

“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.”