10 Best Performing NASDAQ Stocks in 2024

8. Constellation Energy Corp. (NASDAQ:CEG)

Year-to-Date Performance as of October 2: 127.23%

Number of Hedge Fund Holders: 71

Constellation Energy Corp. (NASDAQ:CEG) is an energy company that provides electric power, natural gas, and energy management services to ~2 million customers across the continental US. It owns and operates a diverse portfolio of power plants, including nuclear, gas, solar, and wind facilities, and also provides energy efficiency solutions and renewable energy products to help customers reduce their carbon footprint and manage their energy costs effectively.

The company is investing $800 million to upgrade Illinois plants, increasing energy output by 158 MW, and repowering the Criterion wind project, boosting clean energy production by 79,000 MWh. It also issued a $900 million green bond for nuclear upgrades, clean hydrogen, and energy storage.

In the second quarter of 2024, the year-over-year revenue growth was only 0.53%, translating into a $5.48 billion revenue. However, the company anticipates an earnings growth of 45.84% by the end of 2024. It also repurchased $500 million of its shares during the quarter, bringing the total share buybacks for the year to $1 billion.

On September 23, Constellation Energy Corp. (NASDAQ:CEG) announced a $1.6 billion deal with Microsoft to restart the Three Mile Island Unit 1 nuclear plant by 2028. The company aims to extend the plant’s license to 2054.

This project underscores the increasing energy demands of AI data centers and reflects Microsoft’s ambitious AI initiatives. This partnership positions Constellation Energy Corp. (NASDAQ:CEG) as a key player in the growing AI ecosystem.

ClearBridge Global Infrastructure Value Strategy stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its first quarter 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.”