Best Utility Stock of 2024 with 42%-61% Price Gain

While the technology stocks in particular semiconductor stocks have been the talk of the market since the beginning of the year, but other segments have been performing remarkably well too. Surprisingly, two utility stocks from the electricity supply sub-segments have performed very well.  Constellation Energy Corp and Nrg Energy Inc have emerged as the best utility stock of the year so far! Both of the stocks are listed on Nasdaq.

Constellation Energy Corp (CEG) is on the best performing stocks in the US market this year as it surged by 61% YTD as on 30April. Barring NVIDIA, Constellation has outperformed all the major tech stocks. Share price of CEG stood at $115 in the beginning of the year and grew to $185 by 30^th April. CEG share price shot up massively post its earnings announcement. However, Constellation share price growth plateaued in April as it failed to register any growth during the month.

CEG Market Play:  Constellation has emerged as one of the leading producers of carbon free energy in the USA with focus on renewables. Constellation is also benefiting from its investments in renewables and nuclear energy which are incentivized by the government.

CEG is trading at PE of 37.1 and it has RSI of 54.2, which is in the normal  range as on 2 May  2024.

Nrg Energy Inc (NRG) is the second best performing utility stock of the 2024 so far with 42% YTD price gains. NRG stock rose from $51.2 in the beginning of the year to $72.6 by end of April. In the last month this stock also managed to grow by 4%. NRG stock also benefited from its earnings announcement as its share price rose tremendously post results announcement in March. The stock continued to climb in the market despite being overbought for most of March and April. In mid-April it witnessed some price correction but managed to remain positive for the month.

NRG Play: NRG Energy has four major verticals which include Retail services, Energy generation/Distribution along with EPC work, Smart Home Services and Energy Supply portfolio. Energy Generation, which includes lucrative Energy Trading Contracts, remains the biggest revenue segment of the company. NRG has negative PE ratio and RSI was at 66, closer to the overbought range as on 2 May.

Table : Best Utility Stock