We recently published a list of Jim Cramer’s Thoughts on These 9 Stocks. In this article, we are going to take a look at where NextEra Energy, Inc. (NYSE:NEE) stands against other stocks that Jim Cramer discusses.

Jim Cramer, host of Mad Money, recently pointed out some unexpected trends in the stock market this year, spotlighting a group of companies that have largely flown under the radar. These stocks, often overshadowed by the heavily discussed “Magnificent Seven”, the dominant tech giants, are making significant gains without the fanfare. Cramer called them “quiet winners,” emphasizing that many of these stocks, particularly those outside the tech sector, are not getting the recognition they deserve from Wall Street.

READ ALSO: Jim Cramer Discussed These 12 Stocks Recently and Jim Cramer Highlighted Buying Opportunities in 13 Stocks

Cramer elaborated further on this point, noting that the leading stocks in 2025 have emerged from an unexpected mix of sectors, making this trend all the more interesting. Cramer remarked that it is clear that there is a shift happening in the market, with industries beyond tech making significant strides, yet remaining largely underappreciated by the broader investing community.

“So far this year, we’ve had many very big winners outside of tech, and I bet most of them can keep quietly working their way higher.”

He also pointed out that the insurance industry has experienced a particularly strong few years, noting its impressive pricing power, which has translated into higher premiums. This, in turn, has allowed insurance companies to invest those premiums in the bond market, generating significant returns.

Additionally, Cramer argued that the market often gets the most obvious things wrong, which ends up costing investors dearly. In his usual candid style, Cramer emphasized that while no investment is entirely foolproof, certain stocks show more resilience than others. “The key is to buy them when they’re down because they won’t stay down for long,” he advised.

He continued, acknowledging that some stocks have stumbled recently, but he believes that many of the non-tech winners from this year still have room to grow. His message to investors was clear: focus on these quieter, non-tech stocks, as they have the potential to deliver strong returns even as the tech sector struggles with occasional setbacks.

Our Methodology

For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on February 6. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.

Story Continues

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).NextEra Energy (NEE) Gets Cramer's Nod as a "Growth Utility"

A wind turbine, its blades spinning to generate clean renewable energy.

NextEra Energy, Inc. (NYSE:NEE)

Number of Hedge Fund Holders: 69

Cramer was bullish on NextEra Energy, Inc. (NYSE:NEE) during the episode as he commented:

“I like them. I think it’s good. I think it’s a growth utility. I wish it had a little bit better yield, but that’s because the stock has moved so much. I think you’ve got a good one.”

NextEra (NYSE:NEE) generates and sells electricity using a mix of clean energy sources, including wind, solar, and nuclear, while also developing and managing long-term contracted clean energy projects, battery storage, and electric transmission facilities. The stock currently has a yield of 2.98% and has gained more than 20% over the past 12 months.

Madison Investments stated the following regarding NextEra Energy, Inc. (NYSE:NEE) in its Q3 2024 investor letter:

“The top contributors in the quarter were NextEra Energy, Inc. (NYSE:NEE), Oracle Corporation, Progressive Corporation, Equifax Inc., and United Healthcare. NextEra has continued to perform well given its strong position in the renewable energy space, increasing demand for power, its transmission capabilities, as well as a tailwind from lower interest rates.”

Overall, NEE ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of NEE as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NEE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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

View Comments