Jim Cramer’s Latest Game Plan: 15 Stocks to Watch

3. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 71

Cramer mentioned his love for nuclear power and also called Constellation Energy Corporation (NASDAQ:CEG) a cult stock.

“We’ve all fallen in love with nuclear power and that means we like Constellation Energy. I’ve been recommending this stock for years, but I think it’s become a cult stock and it doesn’t matter what they have to say.”

Constellation Energy (NASDAQ:CEG) operates in the U.S. energy sector, focusing on generating and selling electricity. The company offers a range of products, including natural gas and various energy-related solutions, while also emphasizing sustainable practices. Its generating capacity includes a mix of nuclear, wind, solar, natural gas, and hydroelectric resources, catering to a broad customer base that includes distribution utilities, municipalities, cooperatives, and a wide range of commercial, industrial, governmental, and residential clients.

In the third quarter, the company reported a significant increase in its GAAP net income, achieving $3.82 per share, compared to $2.26 per share during the same period the previous year. The company’s focus on reliable and carbon-free generation was evident as it produced over 41 million megawatt-hours from its nuclear facilities, achieving an impressive capacity factor of 95%. Similarly, the performance of its renewable and natural gas assets was noteworthy, with a 96% capture rate for renewable energy and a power dispatch matching rate of 98.2%.

A highlight of the quarter was Constellation Energy’s (NASDAQ:CEG) announcement of a 20-year power purchase agreement with Microsoft, aimed at facilitating the launch of the Crane Clean Energy Center. Through this agreement, Microsoft plans to procure the output from the renewable plant to help power its data centers within the PJM interconnection, aligning with its commitment to clean energy.

Furthermore, management commented that the Crane facility is expected to qualify for the technology-neutral clean electricity production tax credit (PTC), which is part of the Inflation Reduction Act, for its initial ten years of operation.