The top stocks to own for a major structural shift in the U.S. economy

Investing.com -- Bernstein initiated coverage on a dozen power, clean energy and liquefied natural gas (LNG) stocks this week, as the U.S. finds itself in the middle of "a once-in-a-generation restructuring of how energy is produced, moved, and consumed."

The shift is being driven simultaneously by energy security concerns, decarbonization goals and growing demand from data centers and artificial intelligence, Bernstein said. The broker forecasts U.S. power demand will grow at roughly a 3% annual rate through 2030, compared with just 0.35% from 2000 to 2024.

Bernstein frames the opportunity across three sub-sectors: natural gas, which it says "funds the transition" in the U.S.; utilities and equipment makers, which enable it by building out grid infrastructure; and clean energy, which it calls "the ultimate destination."

Among its top picks, Bernstein rates GE Vernova Outperform with a $1,206 price target, calling the company "the only scaled, vertically integrated platform that is serving the global electricity system at a time when demand is inflecting like never before," citing strength in both its power and electrification segments.

NextEra Energy is also rated Outperform. Bernstein said the stock combines a stable regulated utility arm, Florida Power & Light, which is growing its rate base 8% annually, with a renewable energy arm carrying 30 gigawatts of backlog.

The analysts also view the pending Dominion acquisition as a positive that would deepen NextEra’s exposure to data center demand.

Constellation Energy, another top pick, was highlighted for its 22-gigawatt nuclear fleet and the Calpine acquisition, which the analysts said adds dispatchable natural gas capacity to a largely nuclear portfolio.

Similarly Vistra, another clean firm power generator, is also on the list. Bernstein said VST represents a "value compounding story" built on largely depreciated generation assets repricing into higher power prices, with recent contracts from Amazon AWS and Meta cited as validation of its standing with hyperscale customers.

Bernstein is also bullish on Fervo Energy, the geothermal developer, while taking the opposite view on peer Ormat Technologies, rating it Underperform on concerns it cannot compete with Fervo’s enhanced geothermal technology.

In LNG, Cheniere Energy was rated Outperform with a $283 target, citing 95% of its portfolio under long-duration contracts, while Venture Global received a Market-Perform rating.

Elsewhere, Bernstein rated First Solar at Underperform on concerns its margins are heavily dependent on tax credits, and assigned Market-Perform ratings to Bloom Energy, Enphase Energy and T1 Energy, citing valuation, policy uncertainty and unproven scale, respectively.

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