11 Best Alternative Energy Stocks to Buy Now

4. Talen Energy Corporation (NASDAQ:TLN)

Number of Hedge Funds Holders: 77

Talen Energy Corporation (NASDAQ:TLN), a stand-alone power producer and infrastructure company, sells and generates electricity across the United States. Talen Energy has a broad portfolio consisting of solar, fossil, nuclear, and coal power plants and is expanding its battery storage initiatives to solidify its clean energy transition

Talen Energy Corporation (NASDAQ:TLN) reported $770 million in adjusted EBITDA and $283 million in adjusted free cash flow, demonstrating strong operational performance for the fiscal year ended December 31, 2024. The Susquehanna nuclear facility accounted for half of the total 36 terawatt hours of power generated. The company took advantage of rising dispatch opportunities for its gas-fired fleet during increasing energy demand in the Pennsylvania-New Jersey-Maryland Interconnection (PJM) market.

Moreover, Talen Energy Corporation (NASDAQ:TLN) is vigorously collaborating with AWS to power a 960 MW data center campus at its Susquehanna nuclear plant. Of the total capacity, 300 MW is being developed under a Power Purchase Agreement (PPA) and the company is working through regulatory processes to further scale the project. The operations of its Brandywine and Wagner plants are extended till 2029, generating $145 million annually starting June 2025, as Talen acquired a Reliability Must Run (RMR) agreement in Maryland.

Furthermore, by repurchasing 13 million shares in 2024 (approximately 22% of its outstanding stock) and returning $2 billion in capital, the company remains dedicated to shareholder returns. Talen Energy Corporation (NASDAQ:TLN) ensures balance sheet flexibility and has $1.2 billion in liquidity to facilitate future growth, with a net leverage ratio of 2.4x.

Thus, Talen Energy Corporation (NASDAQ:TLN) maintains its position as one of the best clean energy stocks and remains a prominent player in the evolving energy landscape with reaffirmed 2025 EBITDA guidance of up to $1.175 billion.