5 Best Hot Stocks To Buy Right Now

3. Constellation Energy Corporation (NASDAQ:CEG)

YTD Return as of October 17: 103%

Number of Hedge Fund Holders: 43

Constellation Energy Corporation (NASDAQ:CEG) operates as a power generation and electricity utility company in the United States. Constellation Energy Corporation (NASDAQ:CEG) has gained 103% year to date and has a 3-month average trading volume of 2.37 million, as of October 14. Constellation Energy Corporation (NASDAQ:CEG) is one of the best momentum stocks to invest in.

Wall Street sees material upside to Constellation Energy Corporation (NASDAQ:CEG). This August, Morgan Stanley analyst Stephen Byrd raised his price target on Constellation Energy Corporation (NASDAQ:CEG) to $95 from $64 and reiterated an Overweight rating on the shares. On October 3, Credit Suisse analyst Nicholas Campanella took coverage of Constellation Energy Corporation (NASDAQ:CEG) with an Outperform rating and a $98 price target.

At the close of Q2 2022, Constellation Energy Corporation (NASDAQ:CEG) was a part of 43 investment portfolios. The collective stakes of these hedge funds amounted to $1.20 billion, up from $1.12 billion in the preceding quarter with 47 positions. As of June 30, Southpoint Capital Advisors is the top shareholder in Constellation Energy Corporation (NASDAQ:CEG) and has stakes worth $171.78 million in the company.

Here is what Heartland Advisors had to say about Constellation Energy Corporation (NASDAQ:CEG) in its third-quarter 2022 investor letter:

“Our best-performing holding in the quarter was Constellation Energy Corporation (NASDAQ:CEG) in the utilities sector. CEG is a great example of “deep value” holding with a self-help catalyst and is the leading provider of clean energy in the U.S., derived primarily from nuclear power. Earlier this year, the company was spun-off from a prior long-term utility holding. Post spin-off, we increased our position in CEG on the belief that the company was materially undervalued and catalysts were in place to change investors’ perception.

One of those catalysts was the August passage of the Inflation Reduction Act of 2022. Nuclear power has never benefitted from its zero-carbon emitting properties, like wind and solar. This legislation provides nuclear power plants with zero-carbon treatment, establishing a “floor” under power prices that could protect CEG from much of the potential downside swings in commodity power prices.”