5 Best Renewable Energy Stocks To Buy According to Hedge Funds

4. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 45

There were 45 hedge funds long Constellation Energy Corporation (NASDAQ:CEG) in the third quarter, with a total stake value of $1.5 billion.

Constellation Energy Corporation (NASDAQ:CEG) is a producer of carbon-free energy with about 32,355 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets. It is based in Baltimore, Maryland.

Neil Kalton at Wells Fargo maintains an Overweight rating and a $150 price target on Constellation Energy Corporation (NASDAQ:CEG) as of February 6.

Here’s what Sound Shore Management said about Constellation Energy Corporation (NASDAQ:CEG) in its third-quarter 2023 investor letter:

“On the plus side of the ledger, we had strong contributions from independent power producers Vistra and Constellation Energy Corporation (NASDAQ:CEG). Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Meanwhile, Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”