15 Best Stocks to Buy During Recession

7. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 85

Constellation Energy Corporation (NASDAQ:CEG) produces and sells energy products and services. The company’s stock has been upgraded by Citigroup Research, which highlighted the future opportunities related to nuclear power. Ryan Levine upped the company’s stock to “Buy” from “Neutral.” As per the analyst, Constellation Energy Corporation (NASDAQ:CEG)’s stock provides an attractive risk/reward dynamic amid the market volatility due to Trump’s global trade tariffs. Even during an economic recession, the analyst believes that the company can benefit from its position as the largest producer of carbon-free energy in America.

Citigroup also believes that Constellation Energy Corporation (NASDAQ:CEG) will significantly grow as the demand for clean energy increases alongside AI data centers, which tend to consume significant amounts of power. With the intensifying global efforts to combat climate change, the demand for clean energy sources can significantly increase. Constellation Energy Corporation (NASDAQ:CEG)’s extensive portfolio of nuclear and renewable assets enables it to address the growing demand effectively.

Fred Alger Management, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of clean energy in the U.S., with 32,400 Megawatts of capacity, approximately 67% of which is nuclear generated. Its nuclear, hydro, wind, and solar facilities provide 10% of all clean energy on the U.S. grid and 22% of its clean baseload power. We believe the company stands to benefit from the increasing electrification of the U.S. economy. The rise of electric vehicles, data centers, and reshoring of American manufacturing is driving U.S. electricity load growth for the first time in nearly two decades. During the quarter, shares detracted from performance due to a combination of regulatory challenges and broader industry pressures. The Federal Energy Regulatory Commission (FERC) rejected an interconnection agreement between Talen Energy’s Susquehanna nuclear plant and an Amazon data center, raising concerns about similar deals and regulatory hurdles for the nuclear industry. While this event was outside Constellation’s control, we believe it does not alter the thesis that tight power markets should drive higher pricing for the company. In our view, the FERC rejection also underscores anticipated tightness in mid-Atlantic power markets, reinforcing the long-term value of Constellation’s under-monetized assets.”