8 Most Promising Clean Energy Stocks According to Hedge Funds

2. NextEra Energy (NYSE:NEE)  

Number of Hedge Fund Holders: 73  

NextEra Energy (NYSE:NEE) is the world’s largest producer of wind and solar energy and a leader in battery storage technology. NextEra Energy’s (NYSE:NEE) operations are divided into two primary businesses. The first is Florida Power & Light (FPL), an electric utility company. The second is NextEra Resources (NEER), one of the world’s largest producers of clean energy and a leader in battery storage. NEER focuses on developing, constructing, and operating long-term clean energy assets, primarily in the United States and Canada.

With over two decades of experience in clean energy projects, NextEra Energy (NYSE:NEE) has a significant competitive advantage. In 2022, the company held 56% of the wind energy market and 38% of the clean market share from 2019 to 2022. NEER operates a clean energy portfolio of approximately 34 GW, which includes 24 GW from wind, 7 GW from solar, and 2 GW from nuclear energy. NEER also has 1 GW of battery storage capacity across 16 U.S. states.

Nearly 93% of the company’s revenues come from long-term Power Purchase Agreements with data centers and tech companies, providing stable and predictable cash flows. NextEra Energy’s (NYSE:NEE) financial performance remains strong, with adjusted earnings increasing by 10.8% in Q2, driven by investments and a growing clean portfolio. Looking ahead, the company expects its earnings per share (EPS) to grow by 6-8% annually through 2027 and plans to increase dividend payments by 10% annually. Analysts forecast that the company’s earnings will rise by 7.29% in the current year.