NextEra Energy (NEE) – Among the Best Utility Stocks to Invest in According to Hedge Funds

NextEra Energy, Inc. (NYSE:NEE) is included among the 11 Best Utility Stocks to Invest in According to Hedge Funds.

NextEra Energy (NEE) - Among the Best Utility Stocks to Invest in According to Hedge Funds

With a market cap of over $168 billion as of the writing of this article, NextEra Energy, Inc. (NYSE:NEE) is the most valuable utility company in the world. The company boasts a diverse mix of energy sources, including natural gas, nuclear, renewable energy, and battery storage.

On December 17, UBS analyst William Appicelli trimmed the firm’s price target on NextEra Energy, Inc. (NYSE:NEE) from $94 to $91, while maintaining a ‘Buy’ rating on the shares. Earlier on December 16, Morgan Stanley also lowered its price target on NEE from $97 to $95 while keeping its Overweight rating.

NextEra Energy, Inc. (NYSE:NEE) CEO John Ketchum announced earlier this month that the company plans to build 15 GW of new power generation for data center hubs by 2035. As the utility witnesses a surge in power demand driven by data centers, it raised its 2025 adjusted earnings guidance to $3.62-$3.70 per share, from $3.45-$3.70 previously. The company also updated its 2026 adjusted EPS guidance to $3.92-$4.02 from $3.63-$4.00 previously. NextEra is targeting long-term adjusted EPS growth of at least 8% through 2035, based on the expected 2025 outlook.

NextEra Energy, Inc. (NYSE:NEE) is known for its strong dividend growth history, and earlier this month, the company reaffirmed its target to raise dividends per share at roughly 10% per year through 2026, starting from a 2024 base. After that, the utility expects per-share dividend growth of around 6% annually in 2027 and 2028, off a 2026 base.

NextEra Energy, Inc. (NYSE:NEE) was recently included on our list of the 10 Best Renewable Energy Dividend Stocks to Buy Now.

While we acknowledge the potential of NEE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NEE and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.