Core Viewpoint - Constellation Energy Corporation (CEG) is experiencing a bullish trend, supported by its efficient nuclear operations and rising demand for clean energy, particularly from AI-driven data centers [1][4][19]. Group 1: Stock Performance - CEG's stock is trading above its 50-day and 200-day simple moving averages, indicating a positive trend [1]. - The stock closed at $255.63 on January 7, with a 121% increase over the past year, outperforming the industry average of 76%, the S&P 500's growth of 28.6%, and the Zacks Oil-Energy sector's return of 10.8% [4]. - CEG is currently trading at a forward 12-month P/E of 27.84X, which is higher than the industry average of 24.93X [17]. Group 2: Clean Energy Demand - The demand for clean electricity is increasing, and CEG's ability to produce emission-free electricity from its nuclear plants positions the company favorably [1][8]. - CEG is set to benefit from a projected $1 trillion investment in data centers by major tech companies over the next five years, as AI-driven data centers require more electricity [9]. Group 3: Nuclear Fleet and Capacity - CEG's primary power production comes from its nuclear fleet, which has maintained a fleetwide capacity factor of over 94% for the past decade, exceeding the industry average by about 4% [7][8]. - The company has engaged in long-term uranium supply contracts to ensure a stable nuclear fuel supply, supporting continued production [7]. Group 4: Financial Performance and Shareholder Value - The Zacks Consensus Estimate for CEG's 2025 earnings per share has increased to $9.16, reflecting a 2.1% rise over the last 60 days, indicating growing analyst confidence [12]. - CEG has repurchased shares worth $1 billion year-to-date and has an additional $1 billion remaining under its share repurchase program [14]. - The company aims to increase its dividend by 10% annually, subject to board approval [14]. Group 5: Return on Equity - CEG's trailing 12-month return on equity stands at 16.26%, outperforming the industry average of 10.53%, showcasing effective utilization of shareholders' funds [15].

Nuclear energy stocks are climbing in 2025, fueled by regulatory changes and rising demand from emerging industries. Shares of nuclear energy companies have recently surged following the Biden administration’s decision to ease tax-credit rules for hydrogen production.On January 3, the U.S. Treasury Department and the Internal Revenue Service finalized regulations tied to the Inflation Reduction Act (IRA), broadening the eligibility for tax credits to accelerate renewable energy adoption. A regulatory lifeli ...

Constellation Energy Corporation’s (CEG) long-term investments and focus on renewable energy help boost its performance. The company’s position as an industry leader in the safe operation of nuclear plants helps it increase its nuclear output.However, this Zacks Rank #3 (Hold) company faces risks related to non-performance of its suppliers and variation in weather conditions.Tailwinds for Constellation EnergyCEG’s strategic investment plans and focus on continuing to expand its renewable portfolio drive its ...

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .On December 22, I wrote an article titled "Power Play: Why Vistra Is My Favorite Utility Star." This article, which was about the Vistra Corporation ( VST ) , included my view on nuclear energy, which is very bullish.Analyst’s Disclosure: I/we have no stock, option or similar de ...

Constellation Energy TodayCEGConstellation Energy$242.60 +18.89 (+8.44%) 52-Week Range$109.44▼$288.75Dividend Yield0.58%P/E Ratio26.75Price Target$281.43Add to WatchlistConstellation 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. The contracts validate Co ...

The global renewable energy sector achieved new heights in 2024 overcoming critical challenges like financing gaps in developing and emerging nations and a lack of international collaborations. Looking ahead, we may buy stocks like Constellation Energy (CEG) , Excelerate Energy (EE) and Gevo Inc. (GEVO) , anticipating the sector to continue its winning streak next year as well. What’s Been the Scenario So Far?With global renewable energy having attracted new investments worth $313 billion in the first half ...

Core Viewpoint - The recent upgrade of Constellation Energy Corporation (CEG) to a Zacks Rank 2 (Buy) is driven by an upward trend in earnings estimates, which is a significant factor influencing stock prices [2][3]. Earnings Estimates and Stock Performance - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock movements, making it beneficial for investors to track these revisions for investment decisions [4][13]. - The Zacks Rank stock-rating system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. Company-Specific Insights - For the fiscal year ending December 2024, Constellation Energy Corporation is projected to earn $8.31 per share, reflecting a 65.9% increase from the previous year [8]. - The upgrade to Zacks Rank 2 places Constellation Energy in the top 20% of Zacks-covered stocks based on estimate revisions, suggesting potential for stock price appreciation in the near term [11][10]. Analyst Activity - Analysts have consistently raised their earnings estimates for Constellation Energy Corporation, with the Zacks Consensus Estimate increasing by 4.5% over the past three months [15].

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. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Constellation Energy Corporation (CEG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Constellat ...

Key TakeawaysShares of Constellation Energy rose Thursday after analysts from Bank of America upgraded and lifted their price target for the stock.The analysts said rising demand for electricity to power things like data centers should boost revenue for Constellation and other energy stocks.Constellation presents a "unique investment opportunity" as demand continues to increase, the analysts wrote. Constellation Energy (CEG) shares rose Thursday after Bank of America analysts upgraded the energy company's s ...

Constellation Energy Corporation (CEG) is currently trading at a premium compared with the Zacks Alternate Energy-Other industry. With a forward 12-month price/earnings ratio of 25.85X, the stock is priced a tad above the industry average of 24.68X and the broader Zacks Oil and Energy sector’s 11.26X.CEG’s Valuation ChartImage Source: Zacks Investment ResearchThe company continues to add more clean energy to the grid by acquiring new nuclear plants and extending the lives of existing plants through new lice ...