5 Best Utility Stocks to Buy Now According to Hedge Funds

3. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 79

Constellation Energy Corporation (NASDAQ:CEG) is the largest provider of clean, low-carbon energy in the United States. The company also operates the largest fleet of nuclear facilities in the country.

On June 24, Morgan Stanley upped its price target on Constellation Energy Corporation (NASDAQ:CEG) from $359 to $364, while maintaining its ‘Overweight’ rating on the stock. The target boost reflects a significant upside of almost 38% from the current levels.

The analyst firm refreshed its valuation estimates for North American regulated utilities, diversified utilities, and independent power producers (IPPs) in its latest sector update. The firm noted that utility stocks significantly underperformed the broader market in May, with the sector falling by 5.5% while the overall S&P gained roughly 5.1% during the month.

Constellation Energy Corporation (NASDAQ:CEG) also made headlines on June 23 when the company signed a long-term deal with Walmart to provide electricity from its Dresden Clean Energy Center in Illinois, marking the retail behemoth’s first purchase of nuclear energy. While nuclear has been high in demand by data center operators, the agreement with Walmart indicates that other sectors are also now interested in clean energy that is available around the clock.