Key Points

With nuclear energy in high demand, Constellation Energy will benefit as the largest supplier.
Enterprise Product Partners offers investors a high yield and potential growth.
NextEra Energy operates as both a regulated utility and a fast-growing renewables business.

Energy stocks have experienced quite a ride this year. Geopolitical shifts and rising electricity needs from AI data centers are drawing attention to energy firms. Investors now face many options. Here are my strongest conviction selections for the second half of 2026.

Constellation Energy stands out

Nuclear power is experiencing notable growth in the United States and elsewhere. Constellation Energy owns the biggest collection of nuclear facilities in the nation. Its ability to supply reliable power for expanding needs remains unmatched. Large-scale data center developers are turning to Constellation to fulfill requirements. Deals with firms such as Microsoft and Walmart are generating fresh income for the company.

Image source: Getty Images.

Interestingly, Constellation Energy shares have not performed strongly this year. Down over 25 percent in 2026, the stock has faced pressure from several elements, including the Calpine purchase, large investor sales, and resistance plus restrictions on data centers. Much of the share selling stems from the stock's prior climb of more than 500 percent over five years.

While utility stories often focus on income rather than expansion, that pattern does not apply here. The firm provides a modest dividend, yet rising energy needs should fuel meaningful growth ahead. Management projects earnings-per-share increases of 20 percent through 2029. Constellation gives investors a measured way to participate in AI-driven power demand.

Finally, the company has approved a 5 billion dollar share repurchase plan and expects free cash flow above 8 billion dollars through 2027. Combined with new long-term power agreements, these factors position Constellation Energy for continued leadership.

Enterprise Product Partners delivers value

Investors seeking a steady, low-drama operation may find Enterprise Product Partners appealing. It ranks among the largest midstream players and uses a fee-based approach for transporting, storing, and handling natural gas, natural gas liquids, crude oil, and petrochemicals. Its industry placement largely shields it from daily commodity price moves.

EPD also provides a yield near 5.7 percent. The forward price-to-earnings ratio sits around 14, and the PEG ratio of 1.58 indicates the shares may be fairly valued or slightly undervalued.

In the first quarter of 2026, the firm reported 2.7 billion dollars in EBITDA, up 10 percent from the prior year. Management called it an exceptional period, and near-term discretionary free cash flow will support buybacks and debt reduction. A solid balance sheet and lower capital outlays in 2026 should allow additional repurchases and distribution increases.

EPD is well placed to benefit from AI-related demand for natural gas and LNG exports, offering both income and visible growth.

NextEra Energy leads the way forward

NextEra Energy may be best positioned overall to serve AI power requirements. It owns Florida Power and Light, a regulated utility that supplies reliable cash flows. At the same time, its renewables unit is expanding with a growing pipeline of data center agreements. The utility business anchors stability while the renewables side scales.

First-quarter earnings per share rose 10 percent year over year to 1.09 dollars. Leadership targets at least 8 percent annual adjusted earnings-per-share growth through 2032. The dividend yields about 2.83 percent at current prices. The stock trades at a modest premium, yet the growth outlook supports long-term holding.

Three compelling selections

These three firms each excel in distinct parts of the energy sector. Whether seeking growth or income exposure, they provide clear routes to shareholder returns and represent my highest-conviction choices for the second half of 2026.