12 Best Nuclear Power Stocks to Buy Now

4. Talen Energy Corporation (NASDAQ:TLN)

Number of Hedge Fund Holders: 77

Ranked at number 4 on our list of the Best Nuclear Energy Stocks According to Hedge Funds is Talen Energy Corporation (NASDAQ:TLN), a leading independent power producer and energy infrastructure company with 10.7 GW of generation assets, including 2.2 GW of nuclear power and a significant dispatchable fossil fleet.

Talen Energy Corporation (NASDAQ:TLN) reported an EPS of $0.47 for Q4 2024, beating expectations by $0.67. Although its revenue of $467 million was down 11.39% YoY, it was still above estimates by over $33 million. The company reported a net income attributable to stockholders of $998 million for the full year 2024, up about 63% from 2023. Since the start of 2024, Talen has repurchased approximately 22% of its outstanding shares for a total of $1.95 billion, with $1.1 billion of remaining share repurchase program capacity through year-end 2026.

Bank of America Securities initiated coverage on Talen Energy Corporation (NASDAQ:TLN) last month, assigning the stock a Buy rating and setting a price target of $253. After the company agreed to provide power to Amazon’s AWS unit via its Susquehanna nuclear plant, the bank estimates that the deal will lift Talen’s annual EBITDA by $110 million starting in 2027. Moreover, the power producer has agreements in place that are guaranteed to generate $110 million of revenue between May 2025 and 2029.

ClearBridge Investments stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its Q4 2024 investor letter:

“We added several new positions during the quarter and updated our utilities and energy exposure. In utilities, we bought Talen Energy Corporation (NASDAQ:TLN), an independent power producer which sells electricity, capacity, and ancillary services into wholesale power markets, which we funded by exiting our position in Constellation Energy. Although both companies are merchant power producers that stand to benefit from higher power prices as AI data centers are brought online, we believe that Talen’s stock price has milder embedded expectations than does the more optimistic Constellation. As a result, we believe that Talen represents a much more attractive risk/reward tradeoff that still capitalizes on the strong, long-term trend toward higher power prices.”