10 Most Profitable NASDAQ Stocks To Invest In

3. Constellation Energy Corp. (NASDAQ:CEG)

TTM Net Income: $2.4 billion

5-Year Net Income CAGR: 35.27%

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. It primarily operates in the wholesale energy market, selling electricity and natural gas to businesses and other entities.

82% of the company’s shares are owned by institutional investors, suggesting well-researched investments. The top 9 shareholders own more than half of the company’s shares, indicating that the interests of the larger shareholders are balanced out to some extent by the smaller ones, mitigating the risk of a crowded trade where multiple parties compete to sell stock quickly.

The company grew revenue by 0.53% year-over-year in Q2 2024. Constellation Energy Corp. (NASDAQ:CEG) repurchased $500 million of its shares during the second quarter, bringing the total share buybacks for 2024 to $1 billion. It’s investing $800 million to upgrade its Byron and Braidwood nuclear plants in Illinois, 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.

On September 23, the company announced a $1.6 billion deal with Microsoft to restart the Three Mile Island Unit 1 nuclear plant by 2028, aiming to extend the plant’s license to 2054. This project reflects the increasing energy demands of AI data centers and Microsoft’s ambitious AI initiatives.

It’s a leading provider of clean, carbon-free energy solutions. The company’s diverse portfolio includes hydro, wind, solar, and nuclear power, capable of powering millions of homes. Recent financial results exceeded expectations, and Constellation Energy Corp. (NASDAQ:CEG) has raised its earnings guidance, making it an attractive investment choice.

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.”