We recently published a list of 10 Jim Cramer Stocks to Watch in 2025. In this article, we are going to take a look at where Talen Energy Corporation (NASDAQ:TLN) stands against other Jim Cramer stocks to watch in 2025.
Jim Cramer in a latest program on CNBC commented on the bearish start of 2025 and said being a bear in the market is “easy” because when the stocks rise no one would remember your outlook but if they fall, you will get the credit for your forethought. Cramer mentioned the reasons why he is bullish on the market in 2025.
First, Cramer believes the departure of FTC Chair Lina Khan would bode well for the market. He called Khan “way over her head” and said she used to oppose “all deals.”
Cramer also said President-elect Donald Trump’s tariff policies are expected to be “negotiable” that would offset their negative impact on companies. He also commented on the expected dynamics in the housing market:
“Housing breaks price we’re already seeing what happens when there’s overbuilding as is case in Florida. Prices come down when mortgage rates go up. What happens? Prices go down. Once prices come down, you know what? Buyers start staying away hoping for still lower prices, and it usually works, causing sellers to panic furiously, cutting prices themselves. They’ll be stuck and can’t move. It’s called the cycle. Although it has been operating normally for the last few years, I think 2025 will be the year the cycle reasserts itself, and the FED will win big on this one.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article we picked 10 stocks Jim Cramer was talking about heading into the new year. With each stock we have mentioned the number of hedge fund investors. 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).
Talen Energy Corporation (NASDAQ:TLN)
Number of Hedge Fund Investors: 68
Jim Cramer was asked in November about independent power producer Talen Energy Corporation (NASDAQ:TLN). He recommended investors buy the stock.
“I think Talen Energy Corp (NASDAQ:TLN), you know they got that setback the other day from FERC. It doesn’t matter, they’re in good shape. I like it very much, and I would encourage you to own at least one of these with a Constellation with the Talen Energy Corp (NASDAQ:TLN). I think these are good.”
In November the stock jumped after the company requested the Federal Energy Regulatory Commission to rehear its case for supplying more power to an Amazon data center connected to its Susquehanna nuclear plant in Pennsylvania.
Apis Global Discovery Fund stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its Q3 2024 investor letter:
“The top performer in the quarter was Talen Energy Corporation (NASDAQ:TLN), which we feature below, along with Hallador Energy. Both companies are cheap and well-positioned to benefit from selling power to AI data centers. Talen is an independent power producer (IPP) that serves the Pennsylvania-Jersey-Maryland (PJM) market. It owns 10.7 GW of generation capacity, with the Susquehanna nuclear plant accounting for 2.2 GW, while the remaining assets are various natural gas “peaking” plants that operate at 25-65% utilization. The company went public in 2015 as a combination of Pennsylvania Power & Light’s unregulated energy business and the power generation portfolio of a PE shop, Riverstone Holdings. Riverstone took the business private in 2016. Overleveraged following the take-private and poor hedges eventually forced Talen to file for bankruptcy in 2022, and it reemerged as a public company in 2023 on the OTC market with a new board, management, and cleaned-up balance sheet. In July, shares were uplisted to the Nasdaq and will likely be added to several indexes over the coming months.
The Susquehanna plant is Talen’s prize asset. It is the 6th largest nuclear plant in the country, and while it accounts for only 20% of Talen’s overall capacity, it is responsible for nearly 50% of Talen’s annual power generation. The IRA legislation passed in 2022 made nuclear plants particularly attractive assets by introducing a production tax credit (PTC) mechanism that effectively sets an approximate $40/MWh floor on power prices generated from nuclear. Compare this to Susquehanna’s operating costs of about $23/MWh, and you get a floor of around $300mm in operating cash flow to Talen from Susquehanna alone…” (Click here to read the full text)
Overall, TLN ranks 6th on our list of Jim Cramer stocks to watch in 2025. While we acknowledge the potential of TLN, our conviction lies in the belief that under the radar 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 TLN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.