Constellation Energy Corporation (CEG)
One Of The AI Revolution's Brightest Stars: Constellation Energy
Constellation Energy is positioned to benefit from surging energy demand driven by the AI revolution and data center expansion, with a 13% annual EPS growth target through 2030. The company is innovating with investments in nuclear uprates, small modular reactors, and renewable energy, despite facing regulatory hurdles like FERC's stance on colocation. Financially strong with a BBB+ credit rating and low leverage, Constellation Energy remains a standout, though its high valuation at a 29.3x P/E ratio limits immediate upside.
TD Cowen 'cautious' on seeing 45V final rule as 'final'
The final rule for 45V Clean Hydrogen Production Tax Credit was released, with the Treasury Department providing a $3.00/kg tax credit for the production of hydrogen factored by the lifecycle carbon intensity of the delivered molecule, TD Cowen tells investors in a research note. The firm says the updates pursue "flexibility" while maintaining the constrictive "Three Pillar" framework and believes the legacy nuclear and hydro companies are Green/Pink second half winners. TD Cowen is "cautious" on seeing the rule as "final," and expects "root-and-branch" level changes to 45V guidance in 2025, as Republicans have multiple tools to get this done. Companies in the sector include Constellation Energy (CEG), PSEG (PEG), Vistra (VST), Plug Power (PLUG), Air Liquide (AIQUY), Linde (LIN), and CNX Resources (CNX). Constellation Energy +9.3 (+3.83%) Plug Power +0.17 (+7.30%) Linde +0.96 (+0.23%) Air Liquide -0.42 (-1.30%) PSEG +1.09 (+1.28%) Vistra +10.85 (+7.25%) CNX Resources -1.68 (-4.50%)
Evercore says final 45V rule positive for Constellation, PSEG, and Vistra
Evercore ISI notes that the Department of Treasury released its final rules for the section 45V Clean Hydrogen Production Tax Credit, which included some "favorable accommodations" for the hydrogen industry broadly and nuclear generation assets. The final rules differ from the proposed rules in several respects and "arguably the two most meaningful changes relate to incrementality and time-matching," the analyst tells investors. The final rules announced provide incremental clarity and flexibility that should help facilitate investments within clean hydrogen that have been largely put on pause, contends the analyst, who believes the updated final ruling is a positive for Constellation Energy (CEG), PSEG (PEG) and Vistra (VST). Constellation Energy +9.62 (+3.97%) PSEG +1.36 (+1.60%) Vistra +11.13 (+7.43%)
The Big 3: CEG, NVDA, GOOGL
Today's Big 3 turns to the A.I. trade with Joe Tigay weighing the bullish trends in Constellation Energy (CEG), Nvidia (NVDA) and Alphabet (GOOGL).
Constellation Energy: Stock Climbs on Billion-Dollar Contract
Constellation Energy NASDAQ: CEG stock is up over 8% on January 2, 2025, following news of landmark contracts with the U.S. government. This price increase underscores the company's growing prominence in the clean energy sector and signals a potential turning point for nuclear energy's role in a sustainable future.
Nuclear Energy Stocks Enter 2025 On A High. AI Data Centers Need Them, A Lot.
Nuclear stocks ran hot on the S&P 500 in 2024 as AI data center operators locked down a future's worth of energy. And 2025 is off to a strong start.
Constellation Energy Stock Jumps on $1 Billion in Deals With Federal Government
Shares of Constellation Energy (CEG) surged Thursday after the company announced a pair of contracts with the federal government worth over $1 billion.
Constellation secures $1 bln in contracts to supply US government with nuclear power
Constellation Energy Corp. has been awarded a record $1 billion in contracts to supply nuclear power to the U.S. government, the company said on Thursday.
Constellation Energy: Will AI Power Surge Light Up Stock?
Constellation Energy Corp CEG has been a bright star in the energy sector, delivering nearly 100% year-to-date gains in 2024.
2024 Year in Review: Nuclear Power
With increased demand for powering A.I. technology, big tech companies turned to nuclear energy as a potential green source to fuel its next gen technology.
3 Renewable Energy Stocks Poised for Explosive Growth in 2025
By early 2025, renewables are set to provide more than one-third of total electricity generation globally. You may consider buying CEG, EE and GEVO.
Top 3 power stocks that will benefit from AI demand in 2025
Rapid growth in artificial intelligence is broadly expected to result in an up to 160% increase in data centres driven demand for electricity by the end of this decade.
