Zacks.com users have recently been watching Constellation Energy Corporation (CEG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Constellation Energy, a $58 billion market cap company paying a 0.84% dividend, is known for a recent data center deal with Microsoft involving the restart of TMI nuclear unit 1. In January 2025, Constellation announced the acquisition of a major natural gas electricity generator Calpine for $26.6 billion, subject to regulatory approvals and expected to close by January 2026. Constellation has the largest US fleet of nuclear power plants; nuclear and natural gas are preferred among electricity-generating fuels for providing base load (nuclear) and base load / quick turnaround/backup (natural gas).
Constellation Energy Corporation (CEG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Diving into two top energy stocks to buy in April for long-term AI growth: GE Vernova and Constellation Energy.
Recently, Zacks.com users have been paying close attention to Constellation Energy Corporation (CEG). This makes it worthwhile to examine what the stock has in store.
CEG stock's near-term share prices were adversely impacted by certain factors. However, it remains a good stock, given its strong production assets and rising earnings estimates.
Tariff turmoil has continued to provide intense volatility for the stock market, with certain sector seeing outsized losses as investors price in the risk of tariffs being put in place on a number of sectors and countries which export products to the U.S.
Constellation Energy Group's stock dropped 18% since October on broader concerns around nuclear energy's expected growth, despite strong Q4 and full-year 2024 results, with EPS exceeding expectations by 2.7%. There's much going for CEG, though. The company's 2025 guidance suggests a 6.7% EPS increase, but past trends indicate potential for a higher rise, possibly up to 23.1%. Market multiples are also attractive now, with forward P/E at 23.6x, down from 32.9x in October 2024, reflecting improved valuation.
Zacks.com users have recently been watching Constellation Energy Corporation (CEG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
The strategy provides several choices to exit the trade. I will discuss only two.
Constellation Energy (CEG) is a leading clean energy provider, heavily focused on nuclear power, and has outperformed peers since its IPO in 2022. Despite recent stock correction, CEG's strong fundamentals, long-term contracts, and growing demand for nuclear energy make it a compelling buy. The company's revenue has grown significantly, and operating income has surged due to lower expenses and greater operational efficiencies.