8 Most Profitable Utility Stocks To Invest In

2. Constellation Energy (NASDAQ:CEG)  

Number of Hedge Fund Holders: 71  

TTM Net Income: $2.39 Billion  

5-Year Net Income CAGR: 35.27%

Constellation Energy (NASDAQ:CEG) provides energy products, including natural gas and related services, across North America. The company owns the largest US fleet of nuclear power plants and generates 10% of the United States’ carbon-free electricity.

On September 20, Constellation Energy (NASDAQ:CEG) announced a 20-year power purchase agreement with Microsoft, where the tech giant will purchase a substantial amount of energy from the renewed plant to power its data centers. This milestone will made possible with the launch of the Crane Clean Energy Center (CCEC) and the planned restart of the Three Mile Island Unit 1 nuclear reactor, which was shut down in 2019 due to economic reasons. As a result of this agreement, approximately 835 megawatts of carbon-free energy will be added to the grid, significantly contributing to a cleaner and more sustainable energy mix. CCEC is expected to be operational by 2028.

Constellation Energy (NASDAQ:CEG) is poised for substantial growth, with projected earnings expected to rise by 45.84% this year. Over the past five years, the company has achieved a compound annual growth rate (CAGR) of 35.27% in net income. For the twelve months ending June 30, Constellation’s net income reached $2.39 billion, marking a 208.91% year-over-year increase, driven by investments in sustainable energy solutions and long-term contracts with major tech firms.