Jim Cramer is Recommending These 5 Stocks

This article presents an overview of  Jim Cramer is Recommending These 5 Stocks. For a detailed overview of such stocks read our article, Jim Cramer is Recommending These Stocks.

5. Constellation Energy Corp (NASDAQ:CEG)

Number of Hedge Fund Investors: 41

A questioner recently asked Jim Cramer whether it would make sense to start a new position in Constellation Energy Corp (NASDAQ:CEG). Cramer said that he’s “for it.”

Cramer said Constellation Energy Corp (NASDAQ:CEG) is the type of power company all “hyper-scalers want.”

“It’s the cleanest power, it’s nuclear power.”

Sound Shore Management made the following comment about Constellation Energy Corporation (NASDAQ:CEG) in its Q3 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.”