10 Best Clean Energy Stocks According to Reddit

3. Constellation Energy (NASDAQ:CEG)  

Number of Hedge Fund Holders: 71  

Market Capitalization as of September 4: $56.38 Billion

Constellation Energy (NASDAQ:CEG) provides natural gas, energy products, and related services to residential, commercial, and industrial customers throughout North America. As a key player in nuclear energy, Constellation Energy (NASDAQ: CEG) is dedicated to delivering clean, affordable energy. The company is responsible for generating 10% of the carbon-free clean energy consumed in the United States.

In Q1, Constellation Energy (NASDAQ:CEG) issued a $900 million, 30-year corporate green bond for its nuclear plant upgrades, clean hydrogen production, and energy storage systems. The company secured long-term sustainable energy contracts with major tech companies such as Microsoft and Google to provide a reliable and stable revenue stream. Constellation Energy (NASDAQ:CEG) is also investing $800 million to enhance equipment at its Byron and Braidwood nuclear plants in Illinois, which will increase their energy output by 158 megawatts. Additionally, Constellation Energy (NASDAQ:CEG) is allocating $350 million to upgrade the Criterion wind project in Maryland, which will add 79,000 megawatt-hours (MWh) of clean energy production. In their second quarter investor letter, ClearBridge stated the following regarding Constellation Energy (NASDAQ:CEG):

“On a regional basis, the U.S. and Canada were the top contributors for the 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 baseload nuclear generation can get premium contracts.”

Constellation Energy (NASDAQ:CEG) is well-positioned to capitalize on the recent trend of clean energy and presents a compelling opportunity for long-term investors. The company is expected to grow its earnings by 45.84% this year. Industry analysts have a consensus on the stock’s Buy rating, estimating an average share price target at $225.03, which represents a 16% upside potential from current levels. As of the second quarter, Constellation Energy’s (NASDAQ:CEG) stock was held by 71 hedge funds, with stakes worth $3.78 billion. Coatue Management is the largest shareholder in the company and owns stocks worth $982.90 million as of June 30.