10 Best Stocks In Each Sector In 2024

8. NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders in Q2 2024: 73

NextEra Energy, Inc. (NYSE:NEE) is one of the biggest clean energy companies in the US. It has 33GW of power generation capacity in its portfolio which comes through sources such as solar, wind, and nuclear. Clean energy stocks tend to falter when rates are high. This is why NextEra Energy, Inc. (NYSE:NEE)’s shares are up by a muted 25% over the past twelve months. However, the ‘winds’ might be shifting for the stock as the shares have gained 2.8% since the Federal Reserve announced a 50 basis point cut in September. Additionally, Microsoft’s deal with Constellation Energy to start a nuclear plant to power data centers could also lead to growing interest in big tech for clean energy solutions. Given NextEra Energy, Inc. (NYSE:NEE)’s exposure to the sector, the firm could see tailwinds from these developments. Wall Street’s interest in nuclear is growing as shown by big banks warming up to COP28 nuclear commitments lately, to further boost the firm’s prospects. Finally, NextEra Energy, Inc. (NYSE:NEE)’s Florida subsidiary which forms the core of its operations has performed well and kept consumers’ bills below 40%.

ClearBridge Investments mentioned NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter. Here is what the fund said:

“AI-related momentum was a key driver of performance in the second quarter, lifting the enablers in technology as well as holdings like renewable power producer NextEra that supply the increasing energy needs of data centers. Parts of the market lacking an AI connection, like our medical device holdings, underperformed despite no change to fundamentals. We have managed through several similar momentum periods over our tenure and have delivered long-term results for shareholders by staying true to an approach that emphasizes diversification across three buckets of growth companies (select, stable and cyclical) and seeks to take advantage of attractive entry points into quality growth businesses.”