Core Viewpoint - The article suggests that certain nuclear energy companies may present attractive investment opportunities as the initial excitement surrounding AI technologies has diminished [1] Group 1: Industry Insights - The nuclear energy sector is being revisited for potential investments following a cooling off period in AI-driven hype [1]

Group 1 - Constellation Energy Corporation (NASDAQ:CEG) is viewed positively by hedge funds, with TD Cowen initiating coverage with a Buy rating and a price target of $440, highlighting the benefits from the Calpine Corporation acquisition and potential power contract growth through 2026 [1][3] - The demand for power in the United States is expected to exceed supply for several years, with TD Cowen predicting that this will lead to higher spark spreads and capacity pricing, driven primarily by data center capital spending [2] - The acquisition of Calpine is a significant factor in TD Cowen's optimistic outlook, noting that the settlement with the U.S. Department of Justice was more favorable than anticipated, with minimal divestitures relative to the transaction's scale [3]

Core Insights - Constellation Energy Corporation (NASDAQ:CEG) experienced a share price decline of 6.06% from January 16 to January 23, 2026, ranking among the energy stocks that lost the most during that week [1] Group 1: Company Overview - Constellation Energy is the largest private-sector power producer and clean energy producer in the United States, as well as the leading operator of nuclear power plants [2] - The company has been recognized as a key player in supporting the AI boom, having signed multiple long-term Power Purchase Agreements (PPAs) with hyperscalers, and achieved a gain of nearly 58%, ranking among the 10 Best Performing Utility Stocks in 2025 [5] Group 2: Analyst Insights - Wells Fargo analyst Shahriar Pourreza reduced the price target for Constellation Energy from $478 to $460 while maintaining an 'Overweight' rating, indicating a potential upside of 59% from the current share price [3] - The firm continues to view Constellation as rich with catalysts, highlighting asset opportunities and multiple deals in the pipeline [3] Group 3: Regulatory Developments - On January 17, the President's National Energy Dominance Council (NEDC) signed an agreement with regional governors to address rising electricity prices due to increased demand from data centers, aiming to cap charges in the PJM capacity market and promote affordable electricity for residential customers [4]

Constellation Energy Corporation (NASDAQ:CEG) is included in our list of the best AI energy stocks to buy now. TD Cowen Bullish on Constellation Energy (CEG) Amid Heightened Regulatory Risks and Recently Completed $16.4 billion Calpine Acquisition On January 9, 2026, TD Cowen initiated coverage on Constellation Energy Corporation (NASDAQ:CEG) with a ‘Buy’ rating and a $440 price target, while highlighting heightened regulatory risks. At the same time, the firm cited the recently completed $16.4 billion C ...

Core Insights - The increasing demand for clean electricity driven by AI data centers, urbanization, industrial growth, and electric vehicle adoption highlights the importance of nuclear energy as a reliable, emission-free power source [1][2] Group 1: Nuclear Energy's Role - Nuclear energy provides a high volume of clean energy with zero emissions, making it a reliable solution for consistent power supply [2] - Unlike solar and wind energy, nuclear power offers continuous electricity generation, supporting both growth and decarbonization goals [2] Group 2: Company Analysis - Constellation Energy - Constellation Energy (CEG) is positioned to benefit from rising demand for clean energy, particularly from data centers and electrification, due to its strong nuclear fleet [3] - CEG's strategic acquisitions and capital investments enhance its reliability and efficiency, generating predictable cash flows [3] - The Zacks Consensus Estimate projects CEG's 2026 earnings per share (EPS) to grow by 21.24%, with a return on equity (ROE) of 21.59% and a debt-to-capital ratio of 33.46% [6][8][11][14] Group 3: Company Analysis - Dominion Energy - Dominion Energy (D) emphasizes clean, reliable power and infrastructure modernization, with its nuclear fleet providing carbon-free baseload electricity [4] - The company is exploring small modular reactors (SMRs) for scalable future capacity and is investing in transmission and distribution upgrades [4] - The Zacks Consensus Estimate indicates D's 2026 EPS growth of 5.81%, with a ROE of 9.6% and a higher debt-to-capital ratio of 60.48% [9][8][14] Group 4: Comparative Metrics - CEG's EPS growth of 21.24% significantly outpaces D's expected growth of 5.81% [8] - CEG's ROE of 21.59% is more than double that of D's 9.6% [8][11] - CEG trades at a higher Price/Earnings (P/E) ratio of 22.27 compared to D's 19.36, indicating a premium valuation [13] Group 5: Price Performance - Over the past twelve months, CEG shares have increased by 5.1%, while D shares have risen by 7% [16] Group 6: Conclusion - Both companies are well-positioned to meet rising electricity demand, but CEG's superior earnings estimates, ROE, and lower debt usage provide it with a competitive edge over D [19][20]

Group 1 - Constellation Energy Corporation (CEG) has underperformed in the stock market over the past year, showing lower operating margins and negative free cash flow compared to many competitors, despite moderate revenue growth [2][3] - CEG's operating margin stands at 12.1%, the lowest among its peers, while NextEra Energy (NEE) boasts a significantly higher margin of 28.2%, indicating NEE's stable regulated utility and renewable energy framework compared to CEG's exposure to a competitive power market [3] - The valuation of CEG appears elevated, with a price-to-earnings (PE) ratio of 33.0, which is higher than most of its peers, reflecting market caution regarding the volatility of merchant power despite increasing demand for its nuclear assets driven by AI [3][8] Group 2 - CEG's revenue growth is at 3.6%, which is lower than several competitors like Duke Energy (DUK), Southern Company (SO), Vistra (VST), and Exelon (EXC), which benefit from rate base growth and mergers and acquisitions; however, CEG outperforms NEE, which experienced a revenue decline of 6.9% due to project cycles [8]

These ten large-cap stocks were the worst performers last week. Are they a part of your portfolio?AeroVironment, Inc. (NASDAQ:AVAV) decreased 19.45% this week after the US government issued a stop work order to AeroVironment on SCAR program.DraftKings Inc. (NASDAQ:DKNG) fell 14.4% this week. Sr. betting analyst Bill Speros posted on X that a judge allowed Massachusetts to block Kalshi from offering sports-related contracts in the state. He quoted the ruling saying the state can seek an injunction unless Kal ...

Industry Overview - Nuclear energy is experiencing a resurgence due to its ability to provide carbon-free electricity that can operate continuously, addressing the rising electricity demands, particularly from AI data centers [1] - Several nuclear start-ups are attracting investor interest with innovative designs, such as small reactors from NuScale Power and Oklo, and portable reactors from Nano Nuclear Energy [2] Company Analysis - Constellation Energy is highlighted as a leading player in the nuclear energy sector, operating the largest fleet of nuclear power plants in the U.S. and presenting a compelling investment opportunity [3][5] - Unlike early-stage nuclear start-ups, Constellation is profitable and has shown strong earnings growth, benefiting from increasing power demands [7] - The company has secured significant contracts with major tech firms, including a 20-year agreement with Meta Platforms for the output of the Clinton nuclear plant [6] - Constellation operates as an unregulated power supplier, allowing it to sell electricity at market rates, which differentiates it from regulated utilities [9]

Core Insights - Energy companies are positioned as attractive investments for those looking to diversify their portfolios in the AI sector, particularly due to their solid dividend yields [1][2] Group 1: Energy Consumption and AI - AI is projected to significantly increase energy consumption, with data centers currently using 4.4% of all energy generated in the U.S. and expected to consume as much electricity as 22% of all U.S. households by 2028 [2] - The demand for energy is anticipated to rise, creating opportunities for energy companies that also offer dividends [2] Group 2: Constellation Energy - Constellation Energy is the largest nuclear power producer and clean energy provider in the U.S., contributing about 10% of the country's clean energy [4] - The company has a revenue CAGR of 3.14% over the past three years, with a gross profit margin of 20.13% and a net income margin of 11% [5] - Constellation has partnered with Microsoft to revitalize the Three Mile Island nuclear plant, which will enhance its nuclear capacity and secure a long-term buyer for its electricity, projecting an EPS growth rate of 10%-13% through 2030 [6] Group 3: NextEra Energy - NextEra Energy operates a 76-gigawatt capacity, with 65% derived from renewable and nuclear sources, and has a revenue CAGR of 9.85% over the past three years [8][10] - The company has partnered with Alphabet to bring the Duane Arnold Energy Center back online, which is expected to contribute to an 8% EPS CAGR through 2035 [9] - NextEra has a gross margin of 62% and a net income margin of 24.73%, with a dividend yield of 2.71% that has been growing for 30 years [10] Group 4: Duke Energy - Duke Energy operates in a strategic location between Virginia and Georgia, which are key states for new data centers, with Virginia's energy demand projected to grow by 153% by 2040 [13][15] - The company has a revenue CAGR of 5.29%, a gross margin of 52.4%, and a net margin of 15.97%, with a dividend yield of 3.57% that has been growing for 15 years [16] - Duke is well-positioned to meet the increasing energy demands from Virginia, which has become the largest energy importing state in the U.S. [15]

Constellation Energy has plummeted 14% in January so far.Constellation Energy's (CEG 2.40%) stock is off to a rough start in January. As of market close on Jan. 16, the power company had dropped to $307. This is more than $100 below its 52-week high, which the stock reached in October 2025. Should investors purchase Constellation Energy while it's below $310? Let's dive in deeper. NASDAQ : CEGConstellation EnergyToday's Change( -2.40 %) $ -7.08Current Price$ 287.29Key Data PointsMarket Cap$90BDay's Range$ 2 ...