8 Most Profitable Utility Stocks To Invest In

1. NextEra Energy (NYSE:NEE)  

Number of Hedge Fund Holders: 73  

TTM Net Income: $6.32 Billion  

5-Year Net Income CAGR: 13.60%

NextEra Energy (NYSE:NEE) is the world’s largest producer of wind and solar energy, with a focus on clean and renewable energy solutions. The company operates through its two main subsidiaries, Florida Power & Light (FPL) and NextEra Energy Resources.

The company’s renewable origination has improved, with a higher backlog compared to Q1 2024. The company’s backlog totals 22.6GW, up from 21.5GW last quarter. This suggests that NextEra Energy (NYSE:NEE) will be able to achieve its 40GW of renewable energy target for the 2024-2027 timeframe. NextEra Energy (NYSE:NEE) is well-positioned to benefit from rising electricity demand form to data centers (AI) and reshoring activities.

On September 18, the U.S. Nuclear Regulatory Commission (NRC) granted Florida Power & Light Company’s (FPL) Turkey Point Nuclear Power Plant Units 3 and 4 a subsequent license renewal, allowing the facility to operate for an additional 20 years. Located in South Florida, the Turkey Point facility is a major economic asset, generating enough energy to power nearly 1 million homes and businesses. The subsequent license renewal process was rigorous, with FPL completing a reapplication process that included providing additional documents for a site-specific environmental impact statement. The company’s efforts were recognized by the NRC, which granted the license renewal approval.

FPL’s commitment to clean energy solutions is evident in its fuel mix, with nuclear power comprising 20% of its energy sources. The company is also undergoing subsequent license renewal applications for its St. Lucie Nuclear Power Plant and the Point Beach Nuclear Power Plant, owned by its NextEra Energy Resources. In conclusion, NextEra Energy (NYSE:NEE) is a well-positioned utility company with a strong growth trajectory, driven by data centers and reshoring activities. Industry analysts expect the company to increase its earnings by 7.29% this year.

While we acknowledge the potential of NextEra Energy (NYSE:NEE) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NEE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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