10 Most Promising Energy Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 73

NextEra Energy, Inc. (NYSE:NEE) is a leading North American energy company involved in generating, transmitting, and distributing electricity to residential and commercial customers. The company’s two primary subsidiaries, Florida Power & Light (FPL) and NextEra Energy Resources, drive its operations.

NextEra Energy, Inc. (NYSE:NEE) reported strong second-quarter 2024 results, with earnings per share increasing by over 9% year-over-year. The company’s renewable energy business, NextEra Energy Resources, achieved its second-best quarter for new project origination, adding over 3,000 megawatts to its backlog.

Meanwhile, FPL, the company’s regulated utility subsidiary, continued to invest in infrastructure and deliver outstanding value to customers. NextEra Energy, Inc. (NYSE:NEE) maintained its long-term financial expectations and reaffirmed its commitment to a 10% annual dividend increase.

NextEra Energy, Inc.’s (NYSE:NEE) strategic focus on renewables as well as its financial performance has driven analysts to give the company an average rating of “Moderate Buy”

Here’s what ClearBridge Investments said about NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter:

“Electric utilities were the top contributors for the quarter, with U.S. utilities NextEra Energy, Inc. (NYSE:NEE) and Public Services Enterprise Group (PEG) the lead performers. NextEra Energy is an integrated utility business with a regulated utility operating in Florida and is the largest wind business in the U.S. NextEra’s regulated business, including Florida Power & Light, serves nine million people in Florida. Shares benefited from a positive readthrough to power and renewables demand as a result of data center growth from AI.”