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Should You Add NextEra Energy (NEE) to Your Portfolio?

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ClearBridge Investments, an investment management company, released its “ClearBridge Value Equity Strategy” fourth quarter 2023 investor letter. A copy of the same can be downloaded here. The strategy outperformed the Russell 1000 Value Index in the fourth quarter. On an absolute basis, the strategy has gained ten out of eleven sectors in which it was invested during the quarter. The financials and industrials sectors were the leading contributors while the energy sector detracted. Overall stock selection contributed to returns but sector allocation effects detracted on a relative basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Value Equity Strategy featured stocks like NextEra Energy, Inc. (NYSE:NEE) in the fourth quarter 2023 investor letter. Headquartered in Juno Beach, Florida, NextEra Energy, Inc. (NYSE:NEE) generates, transmits, distributes, and sells electric power. On March 21, 2024, NextEra Energy, Inc. (NYSE:NEE) stock closed at $61.36 per share. One-month return of NextEra Energy, Inc. (NYSE:NEE) was 9.15%, and its shares lost 18.12% of their value over the last 52 weeks. NextEra Energy, Inc. (NYSE:NEE) has a market capitalization of $127.179 billion.

ClearBridge Value Equity Strategy stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its fourth quarter 2023 investor letter:

“We added a new position in NextEra Energy, Inc. (NYSE:NEE), in the utilities sector, which acquires, owns and manages contracted clean energy projects in the U.S. The company was at the center of the defensive stock storm when it slowed its renewable growth outlook modestly in late September, and the stock collapsed almost 30% in less than two weeks. We saw this as an opportunity to invest in arguably the best combination of a regulated utility and an experienced renewable operator with good long-term growth options. Even at a much-reduced estimated growth rate from higher financing costs, which will likely prove to be conservative, our estimate of intrinsic business value is materially higher.”

A construction crew working on a solar energy system, revealing the company’s drive for success.

NextEra Energy, Inc. (NYSE:NEE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, NextEra Energy, Inc. (NYSE:NEE) was held by 65 hedge fund portfolios, compared to 58 in the previous quarter, according to our database.

We discussed NextEra Energy, Inc. (NYSE:NEE) in another article and shared the list of undervalued dividend aristocrats to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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

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