12 Best Electrical Infrastructure Stocks to Buy According to Analysts

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

Average Analyst Upside: 19.70%

Number of Hedge Fund Holders: 69

NextEra Energy, Inc. (NYSE:NEE), one of North America’s leading utility companies, is involved in generating, transmitting, distributing, and selling electricity. The company also engages in energy commodity trading and operates electric generation facilities within wholesale energy markets.

On another front, NEE is advancing its capital recycling strategy with a target of $5-6 billion in asset sales. Recently, the company took a significant step toward this goal by agreeing to sell a partial interest in a wind and solar project portfolio to Blackstone for approximately $900 million. This deal highlights NEE’s ability to monetize assets while freeing up capital to invest in new growth opportunities.

In its third-quarter results, NextEra Energy (NYSE:NEE) delivered strong performance, surpassing earnings expectations. Net income increased to $1.852 billion, or $0.90 per share, compared to $1.219 billion or $0.60 per share in the same period last year. Adjusted earnings came in at $2.127 billion, or $1.03 per share, while revenue grew 5.5% year-over-year to $7.567 billion, up from $7.172 billion in Q3 of the prior year.

On October 18, NextEra Energy, Inc. (NYSE:NEE) announced a quarterly dividend of $0.515 per share, consistent with its previous payout. Notably, the company has increased its dividends for 28 consecutive years, underscoring its commitment to shareholder returns. As of December 17, the stock offers a 2.85% dividend yield.

According to Insider Monkey’s Q3 2024 database, 69 hedge funds held positions in NextEra Energy, Inc. (NYSE:NEE), down from 73 funds in the previous quarter. The collective value of these stakes exceeded $2.47 billion.

Madison Sustainable Equity Fund stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q3 2024 investor letter:

“The top contributors in the quarter were NextEra Energy, Inc. (NYSE:NEE), Oracle Corporation, Progressive Corporation, Equifax Inc., and United Healthcare. NextEra has continued to perform well given its strong position in the renewable energy space, increasing demand for power, its transmission capabilities, as well as a tailwind from lower interest rates.”