10 Best Green Stocks To Buy According to Short Sellers

7. NextEra Energy (NYSE:NEE)  

Short Interest as % of Shares Outstanding: 1.71%  

Number of Hedge Fund Investors in Q2 2024: 73  

NextEra Energy (NYSE:NEE) is the leading global producer of wind and solar energy and battery storage technology. Through its subsidiaries, NextEra Energy (NYSE:NEE) serves millions of customers and plays a crucial role in advancing the shift to a low-carbon economy with its extensive green energy investments.

NextEra Energy (NYSE:NEE) operates primarily through two divisions: Florida Power & Light (FPL), an electric utility, and NextEra Energy Resources (NEER), a major green energy producer and battery storage leader. NEER specializes in developing, constructing, and managing long-term green energy assets, mainly across the U.S. and Canada.

With over 20 years of experience in green energy, NextEra Energy (NYSE:NEE) holds a significant competitive edge. In 2022 the company generated 56% of the total wind energy and 38% of the overall green energy generated in the United States between 2019 and 2022. NEER’s green energy portfolio includes approximately 34 gigawatts (GW) of capacity, comprising 24 GW from wind, 7 GW from solar, and 2 GW from nuclear power. Additionally, NEER operates 1 GW of battery storage across 16 states in the United States

About 93% of NEER’s revenue comes from long-term Power Purchase Agreements with data centers and technology firms, ensuring a stable and predictable revenue stream. The company’s financial performance is robust, with adjusted earnings increasing by 10.8% in Q2 2024, driven by strategic investments and a growing green energy portfolio. Looking forward, NEER projects its earnings per share (EPS) to grow by 6-8% annually through 2027 and plans to boost its dividend payments by 10% per year.

NextEra Energy’s (NYSE:NEE) business is poised to expand significantly due to its dominant position. A short interest of 1.71% in NextEra Energy’s (NYSE:NEE) stock indicates a high level of confidence among investors in the company’s future. As of the second quarter, the company’s stock is held by 81 hedge funds with stakes worth $2.10 billion. GQG Partners is the largest shareholder in the company and has stocks worth $884.56 million as of June 30.