Jim Cramer’s Top 10 Stock Picks You Can’t Ignore

6. NextEra Energy Inc. (NYSE:NEE)

Number of Hedge Fund Investors: 73

Jim Cramer described NextEra Energy Inc. (NYSE:NEE) as a “red-hot stock” when he was asked by a viewer, and mentioned that its sector is also performing well. He believes that NextEra Energy Inc. (NYSE:NEE) still has potential to rise further.

“Red hot stock! The cohort’s red hot too. I don’t think it’s done; I think it can go higher.”

NextEra Energy, Inc. (NYSE:NEE) is a strong investment option due to its leading role in the renewable energy sector and solid financial performance. NextEra Energy, Inc. (NYSE:NEE) is well-positioned to take advantage of the global shift towards clean energy and the growing demand for electricity driven by industries like AI and electric vehicles.

In Q2 2024,NextEra Energy, Inc. (NYSE:NEE) reported a 9% increase in adjusted earnings, reaching $1.968 billion, even though it slightly missed revenue expectations. NextEra Energy, Inc. (NYSE:NEE) saw a 27% rise in cash from operations, showing its ability to handle challenges such as higher interest rates. Ongoing investments in solar and wind power, combined with supportive regulatory policies, boost its long-term growth prospects.

NextEra Energy, Inc. (NYSE:NEE) is set to benefit from increased electricity demand, particularly from companies seeking renewable energy for data centers. Despite some short-term fluctuations in stock price, NextEra Energy, Inc. (NYSE:NEE)’s strong dividend yield, robust cash flow, and leading position in renewable energy make it a promising choice for long-term investors.

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.”