191.50% in 3 Years: Peconic Hedge Fund’s Top 10 Stock Picks

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

Number of Hedge Fund Holders: 72

NextEra Energy (NYSE:NEE) experienced a turbulent year, with shares dropping to a 52-week low of $47.15 in October 2023 before rebounding to over $75 by July 12, 2024. NextEra Energy (NYSE:NEE) surged after the pandemic, reaching all-time highs by the end of 2021. At one point, NextEra Energy (NYSE:NEE)’s market cap exceeded that of Exxon Mobil Corporation (NYSE:XOM). NextEra Energy (NYSE:NEE) operates 74 gigawatts of energy, with projections to surpass 100 gigawatts in the next three years. Senior leadership at NextEra Energy (NYSE:NEE) maintains that forward EPS projections remain unchanged, with expected annualized EPS growth of 6-8% through 2026.

Analyst Steven Fiorillo believes NextEra Energy, Inc. (NYSE:NEE) will benefit significantly from the growing AI boom. He expects strong capital appreciation and dividend growth as energy demand rises. Regulatory filings reveal that at the end of the first quarter of 2024, Peconic Partners owned 250,000 shares of NextEra Energy, Inc. (NYSE:NEE), valued at $15,977,500. This represented 0.7% of their portfolio. NextEra Energy, Inc. (NYSE:NEE) ranks 6th in Peconic Hedge Fund’s top 10 stock picks.

ClearBridge Large Cap Growth Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q2 2024 investor letter:

“AI-related momentum was a key driver of performance in the second quarter, lifting the enablers in technology as well as holdings like renewable power producer NextEra Energy, Inc. (NYSE:NEE) that supply the increasing energy needs of data centers. Parts of the market lacking an AI connection, like our medical device holdings, underperformed despite no change to fundamentals. We have managed through several similar momentum periods over our tenure and have delivered long-term results for shareholders by staying true to an approach that emphasizes diversification across three buckets of growth companies (select, stable and cyclical) and seeks to take advantage of attractive entry points into quality growth businesses.”