Future Earnings Forecasts Raised by NextEra Energy (NEE)

ClearBridge Investments, a leading global asset manager, released its “Global Growth Strategy” second-quarter 2022 investor letter. You can download it here. In the second quarter, the strategy underperformed its MSCI ACWI benchmark index. The financials, materials and consumer staples sectors contributed positively to the fund’s performance whereas  IT, Industrials, and consumer discretionary sectors were the fund’s leading detractors. You can check the fund’s top five holdings to know about its best picks in 2022.

ClearBridge Investments added NextEra Energy, Inc. (NYSE:NEE) to its portfolio during the quarter. Headquartered in Juno Beach, Florida, NextEra Energy, Inc. (NYSE:NEE) engages in the business of electric power generation, transmission, and distribution. The stock of NextEra Energy, Inc. (NEE) closed at $90.20 per share on August 17, 2022. NextEra Energy, Inc. (NYSE:NEE) returned 14.37% in one month and its shares gained 6.68% of their value over the last 52 weeks. NextEra Energy, Inc. (NYSE:NEE) has a market capitalization of $177.223 billion.

Here is what ClearBridge Investments specifically said about NextEra Energy, Inc. (NYSE:NEE) in its Q2 2022 letter.

“We increased our exposure to the energy transition during the quarter with new positions in Iberdrola (OTCPK:IBDSF), a Spanish-based integrated utility that is also one of the leading renewable energy developers in the world, and NextEra Energy, Inc. (NYSE:NEE), an integrated utility business with a regulated utility operating in Florida and the largest wind business in the U.S. The war has opened the eyes of the world that energy independence is critical. Renewables are for many countries the only way to get to the target. It is expected that existing renewable project pipelines will be executed faster, and more projects added to existing pipelines.

The energy transition would be extremely helpful for climate change and Iberdrola ranks well on our ESG matrix. NextEra, meanwhile, recently raised future earnings forecasts, citing a very favorable macro environment for rapid renewable generation expansion driven by decarbonization of the U.S. economy and the relative attractiveness of renewable generation in the context of high natural gas and power prices.”

Photo by Matthew Henry on Unsplash

Although ClearBridge Investments is invested in NextEra Energy, Inc. (NYSE:NEE), the stock is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per our database, NextEra Energy, Inc. (NYSE:NEE) was held by 59 hedge fund portfolios at the end of the first quarter, and 64 in the previous quarter.

We discussed NextEra Energy, Inc. (NYSE:NEE) in another article and shared the list of the best blue chip dividend stocks to buy in August. For more investor letters from hedge funds and other prominent investors, you can check our hedge fund investor letters Q2 2022 page.

Disclosure: None. This article is originally published at Insider Monkey.