In this article, we discuss the 5 best stocks to buy according to Chris James’ Engine No. 1. If you want to read our detailed analysis of James’ history, and hedge fund performance, go directly to the 10 Best Stocks to Buy According to Chris James’ Engine No. 1.
5. NextEra Energy, Inc. (NYSE: NEE)
James’ Stake Value: $14,260,000
Percentage of Chris James’ 13F Portfolio: 5.23%
Number of Hedge Fund Holders: 63
NextEra Energy, Inc. (NYSE: NEE) ranks 5th on the list of 10 best stocks to buy according to Chris James’ Engine No. 1. The Florida-based utility company is the largest solar and wind energy generator in the US, with approximately 54,727 megawatts of net generating capacity as of December 2020. The company was founded in 1925 and was formerly known as FPL Group, Inc. In 2020, the company invested approximately $14.6 billion in energy infrastructure in the US. By 2022, NextEra Energy, Inc. plans to invest between $50 and $55 billion in new infrastructure. NextEra Energy, Inc. just received approval for the Chesapeake Solar Project, a 118-MW solar project in Virginia that will become operational by the end of 2022. The solar investment costs approximately $135 million. NextEra Energy, Inc. (NYSE: NEE) pays its shareholders an annual dividend of $1.54 per share, with a 2.10% dividend yield. NEE stock has returned more than 19% to investors in the past twelve months.
The company has a market cap of $143 billion. The company’s revenue in the first quarter of 2021 came in at $3.7 billion, down from $4.6 billion in the same period in 2020. On a GAAP basis, first-quarter net income attributable to NextEra Energy was $1.6 billion, or $0.84 per share, compared to $421 million, or $0.21 per share, in the first quarter of 2020. As of June 18, NextEra Energy, Inc. (NYSE: NEE) shares traded at $73.28 and have a P/E ratio of 34.73. The 52-week price range of NEE is $58.44 – $87.69. On May 18, Morgan Stanley maintained its Equal-Weight rating on NextEra Energy, Inc. and upgraded its price target to $75 per share.
Engine No. 1 owns 188,604 shares in the company worth $14.4 million, representing 5.23% of the fund’s investment. Out of the hedge funds being tracked by Insider Monkey, Fisher Asset Management is a leading shareholder in NextEra Energy, Inc. (NYSE: NEE) with 13.6 million shares worth more than $1.03 billion.