In this article, we discuss the 11 best electrical infrastructure stocks to buy now. If you want to go through our detailed analysis of these stocks, go directly to the 11 Best Electrical Infrastructure Stocks to Buy Now.
5. Entergy Corporation (NYSE:ETR)
Number of Hedge Fund Holders: 36
Entergy Corporation (NYSE:ETR) is a major player in the production and retail distribution of electricity within the United States. The company operates through two primary segments: Utility and Entergy Wholesale Commodities. Its electric generating capacity exceeds 24,000 megawatts, positioning it as a leader in the industry. In addition, Entergy Corporation (NYSE:ETR) boasts one of the cleanest and most efficient large-scale generation fleets nationwide.
On January 26, Entergy Corporation (NYSE:ETR) reaffirmed its commitment to shareholders by declaring a quarterly dividend of $1.13 per share, consistent with previous payouts. The dividend was distributed on March 1 to shareholders of record as of February 9.
Insider Monkey’s fourth-quarter database reveals that 36 hedge funds maintained long positions in Entergy Corporation (NYSE:ETR), compared to 33 funds in the preceding quarter. Notably, Steve Cohen’s Point72 Asset Management emerged as a significant stakeholder of the company, holding 1.6 million shares valued at $166.2 million.
4. Exelon Corporation (NASDAQ:EXC)
Number of Hedge Fund Holders: 37
Exelon Corporation (NASDAQ:EXC) is a key player in the energy distribution and transmission sectors across the United States and Canada. The company is primarily involved in the regulated retail sale of electricity and natural gas, as well as the transmission and distribution of electricity.
Exelon Corporation (NASDAQ:EXC) received an upgrade from Mizuho on January 10, transitioning from Neutral to Buy, with a revised price target of $39, up from $36. Mizuho’s upgrade reflects their confidence in Exelon’s conservative earnings and capital assumptions, particularly in response to recent developments in Illinois.
Insider Monkey’s fourth-quarter database reveals that 37 hedge funds maintained long positions in Exelon Corporation (NASDAQ:EXC), compared to 36 funds in the previous quarter. Notably, Eric W. Mandelblatt’s Soroban Capital Partners emerged as the leading stakeholder of the company, holding nearly 8 million shares valued at $286 million.
3. Constellation Energy Corporation (NASDAQ:CEG)
Number of Hedge Fund Holders: 41
Constellation Energy Corporation (NASDAQ:CEG) is a major player in the electricity industry, operating across the United States. The company’s operations are segmented into five key regions – Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. With a diverse portfolio of assets, including nuclear, wind, solar, natural gas, and hydroelectric facilities, Constellation Energy Corporation (NASDAQ:CEG) boasts a total generating capacity exceeding 32,000 megawatts.
Insider Monkey’s fourth-quarter database reveals that 41 hedge funds maintained bullish positions in Constellation Energy Corporation (NASDAQ:CEG), compared to 45 funds in the previous quarter. Notably, William B. Gray’s Orbis Investment Management emerged as the largest shareholder of the company, holding 6.15 million shares valued at $718.88 million.
2. PG&E Corporation (NYSE:PCG)
Number of Hedge Fund Holders: 58
PG&E Corporation (NYSE:PCG), operating via its subsidiary Pacific Gas and Electric Company, focuses on distributing electricity and natural gas to customers in California. Employing various energy sources including nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic, the company ensures reliable electricity generation.
In Insider Monkey’s fourth quarter database, PG&E Corporation (NYSE:PCG) attracted investments from 58 hedge funds, up from 49 funds in the previous quarter. Notably, Dan Loeb’s Third Point emerged as the largest stakeholder with holdings of 57.8 million shares valued at over $1 billion.
1. NextEra Energy, Inc. (NYSE:NEE)
Number of Hedge Fund Holders: 65
NextEra Energy, Inc. (NYSE:NEE) operates in the generation, transmission, distribution, and sale of electric power to customers across North America. Utilizing a mix of wind, solar, nuclear, natural gas, and other clean energy sources, the company focuses on sustainable electricity generation.
On February 16, NextEra Energy, Inc. (NYSE:NEE) announced a quarterly dividend of $0.515 per share, marking a 10.2% increase from its previous dividend of $0.468. This dividend will be distributed on March 15 to shareholders on record as of February 27.
In Insider Monkey’s fourth quarter database, NextEra Energy, Inc. (NYSE:NEE) attracted interest from 65 hedge funds, up from 58 funds in the previous quarter. Notably, John Overdeck and David Siegel’s Two Sigma Advisors emerged as the leading stakeholder with 3.90 million shares valued at $237.2 million.
ClearBridge All Cap Value Strategy made the following comment about NextEra Energy, Inc. (NYSE:NEE) in its Q3 2023 investor letter:
“Many businesses are threatened by a higher cost of capital, but one where reality has set in, and which also touches many other growth areas of the market, is the utility company NextEra Energy, Inc. (NYSE:NEE). Over the past few years, the company developed into a growth darling thanks to its strong track record in renewable energy development and tailwinds from the global energy transition and incentives in the Inflation Reduction Act. The problem for NextEra, and the transition broadly, is that this transformation is immensely capital intensive and many renewables projects offer lower returns on that capital. This requires high capital expenditures – often resulting in negative free cash flow – to meet the growth and financing needs of companies like NextEra. To help, the company leaned on financial engineering by using a publicly traded limited partnership called NextEra Energy Partners, providing further capacity for its parent to continue its development plans. NEP used layers of its own financial engineering to fund its own negative free cash flow and a large, growing dividend yield that we believe it could not sustain organically. Ultimately, the higher cost of debt from rising rates led NEP to lower its own growth ambitions, driving concerns about whether NextEra can execute on its extensive backlog. As a result, the stock has declined by approximately 30% year to date.”
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