There are few clean energy companies as compelling as NexEra Energy (NEE +1.30%) right now. It is the world's largest producer of wind and solar energy, but NextEra is rare in that it is also a traditional utility company. That combination of renewable growth potential buoyed by the stability of traditional energy makes NextEra one of the best-positioned stocks as oil prices continue to surge.
NYSE: NEE
Key Data Points
Unlike pure-play renewables, NextEra owns Florida Power & Light, one of the largest regulated electric utility companies in the U.S. This steady revenue stream provides a solid foundation during volatile times. It also gives NextEra's renewables arm the ability to aggressively build out its strategy.
As oil prices remain elevated and electricity needs surge, NextEra is well positioned to capture this demand. Consumers are looking for cost-effective alternatives. Inflated oil prices could unintentionally force consumers to switch to renewable sources sooner than anticipated. This would be great for NextEra, as the rising energy costs accelerate the case for renewable energy.
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The company is heavily investing in grid modernization and energy storage. NextEra's balance sheet is also next-level solid. Earnings per share (EPS) grew 10% year over year as of the latest quarterly report. NextEra anticipates EPS growth of at least 8% through 2032.
With promising growth potential and a consistent dividend, NextEra Energy is a clear and clean winner. The stock is currently up more than 18% year to date and trading near all-time highs, but its long-term value remains intact.
