Jim Cramer’s Top 5 Stock Picks for 2023

In this article, we will be taking a look at Jim Cramer’s top 5 stock picks for 2023. To read our detailed analysis of Cramer’s investment philosophy, you can go directly to see Jim Cramer’s Top 10 Stock Picks for 2023.

5. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 54

Constellation Energy Corporation (NASDAQ:CEG) is a utility company based in Baltimore, Maryland. The company sells natural gas, renewable energy, and other energy-related products and services.

An Overweight rating was reiterated on Constellation Energy Corporation (NASDAQ:CEG) shares on January 31 by Neil Kalton at Wells Fargo.

Cramer said this January that Constellation Energy Corporation (NASDAQ:CEG) will benefit from funding through the Inflation Reduction Act. He also added that the company is the best operator of nuclear plants in the US at present. The company’s third-quarter revenue of $6.05 billion beat estimates by $2.13 billion.

Constellation Energy Corporation (NASDAQ:CEG) was found among the 13F holdings of 54 hedge funds in the third quarter, with a total stake value of $2.3 billion.

Alger Capital, an investment management company, mentioned Constellation Energy Corporation (NASDAQ:CEG) in its third-quarter 2022 investor letter. Here’s what the firm said:

“Constellation Energy Corporation (NASDAQ:CEG) is America’s leading clean energy company, based on carbon-free production. The company is the largest supplier of clean energy and sustainable solutions to homes, businesses, governments, community aggregations, and a range of wholesale customers (such as municipalities, cooperatives, and other end markets) across the continental U.S., backed by approximately 32,400 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas and hydroelectric assets. Constellation produces nearly 10% of the nation’s carbon-free energy.

Shares outperformed during the third quarter primarily due to the Inflation Reduction Act (IRA). Signed into law in august, the bill provides a nuclear production tax credit of approximately $43.75 per megawatt hour of energy generated. This credit favorably impacted earnings, resulting in an increase in Constellation’s share price.”