Core Viewpoint - Utility stocks are expected to deliver strong returns in 2026 due to surging electricity demand, particularly from AI data centers, with Constellation Energy, Dominion Energy, and NextEra Energy positioned to benefit significantly from this trend [1][15]. Constellation Energy - Constellation Energy's share price has increased nearly 50% this year, driven by a resurgence in nuclear energy demand [3]. - The company signed a 20-year power purchase agreement with Microsoft to restart the Three Mile Island Unit 1 facility, which will supply power for Microsoft's data centers starting in 2028 [4]. - A $26.6 billion acquisition of Calpine is expected to close in early 2026, combining Constellation's nuclear fleet with Calpine's natural gas and geothermal assets, enhancing earnings growth potential [6]. Dominion Energy - Dominion Energy has underperformed compared to peers, with a 6% increase in share price over the past year, but is well-positioned to benefit from rising power demand in Virginia, a major data center market [7][9]. - The company plans to invest $50 billion through 2029, primarily in Virginia, including the Coastal Virginia Offshore Wind project, which is expected to support 5% to 7% annual earnings-per-share growth [10]. NextEra Energy - NextEra Energy's share price has risen nearly 11% over the past year, benefiting from its position as Florida's largest electric utility and its clean energy infrastructure [11]. - The company is focused on building the largest utility-owned solar energy platform and has a growing backlog of renewable energy projects, positioning it for earnings growth at the high end of its 6% to 8% annual target range through 2027 [13][14]. - NextEra has signed a 25-year power deal with Google to support the restart of the Duane Arnold Energy Center, expected to be operational by early 2029 [14].

Core Insights - Constellation Energy and Vistra Energy reported Q3 earnings, highlighting their fundamentally different approaches to power generation [1] Company Summaries - Constellation Energy focuses on a clean energy strategy, emphasizing renewable sources and sustainability in its operations [1] - Vistra Energy adopts a more traditional approach, relying on a mix of energy sources including fossil fuels alongside renewables [1]

The energy giant had to give up a little more than originally expected to satisfy regulatory concerns about a looming deal.On Friday, one day after speculation swirled about Constellation Energy's (CEG 2.39%) settlement talks with the U.S. Department of Justice (DOJ), an agreement was reached between the two sides. However, many investors didn't consider it the best compromise, as they collectively sold the energy company's stock by more than 2%. A settlement agreedThose discussions concerned Constellation' ...

Utility Constellation Energy said on Friday it has reached a resolution with the U.S. Department of Justice on the conditions required to complete the previously announced $16.4 billion acquisition of... ...

BALTIMORE--(BUSINESS WIRE)--Constellation announced it reached a resolution with the U.S. Department of Justice on the conditions required to complete the Calpine acquisition. ...

Core Insights - Constellation Energy Corporation (CEG) shares have increased by 5% over the past month, outperforming the Zacks Alternative Energy – Other industry growth of 2.3% and the broader market benchmarks [1][4][7] - The company is effectively adding clean energy to the grid through its nuclear operations and is benefiting from government support for clean energy production [1][10] Price Performance - CEG is currently trading above its 50-day simple moving averages (SMA), indicating a bullish trend [4][5] - In contrast, Duke Energy Corporation (DUK) has seen a decline of 4.9% in the same period, underperforming its industry [4] Key Growth Drivers - CEG is capitalizing on rising clean energy demand, supported by a diversified portfolio anchored by a large nuclear fleet, achieving a 96.8% capacity factor in Q3 2025 [10] - The company plans to invest approximately $3 billion in 2025 and $3.5 billion in 2026, with nearly 35% allocated to securing nuclear fuel [11] - CEG aims for 95% of its annual power production to be carbon-free by 2030 and 100% by 2040, which will lower operating costs and create new revenue opportunities [12] Strategic Acquisitions - The acquisition of Calpine will enhance CEG's generation mix, improve reliability, and expand market presence by adding flexible natural-gas and geothermal assets [13] Earnings Estimates - The Zacks Consensus Estimate for CEG's earnings per share indicates year-over-year growth of 8.42% for 2025 and 21.47% for 2026 [14] Financial Strength - CEG's debt-to-capital ratio stands at 33.46, significantly lower than the industry average of 57.27, indicating lower debt utilization [17] - The Times Interest Earned ratio is 8.5, demonstrating sufficient financial strength to meet interest obligations [19] - CEG's trailing 12-month return on equity (ROE) is 21.59%, outperforming the industry average of 6.23% [20] Shareholder Value - CEG's board has authorized a $3 billion share repurchase program, with approximately $593 million remaining as of September 30, 2025 [22] - The company aims to increase its dividend by 10% annually, with a current quarterly dividend of 38.78 cents per share [23] Valuation - CEG is trading at a forward P/E ratio of 32.7X, which is a premium compared to the industry average of 20.78X [24] Conclusion - CEG is well-positioned to benefit from the increasing demand for clean energy, supported by strategic investments and a robust renewable portfolio [26]

According to a media report, the company's planned $16 billion-plus acquisition is advancing.It appears that Constellation Energy Group (NASDAQ: CEG) is closing in on a major acquisition that will significantly expand its business. A media report stated that the company is in talks with the federal government to assuage antitrust concerns over the deal. Cautiously optimistic investors bought the company's stock by 2% on Thursday after the news broke.Discussing the deal with the DOJ?Near market close on Wedn ...

If you're looking for growth and can handle some risk, these energy stocks have immense potential.The energy sector supplies the juice that makes the economy run. From transportation to data centers to whatever device you're reading this on, energy is an input for everything.That sector is going to grow substantially over the next decade. Analysts at Deloitte, for example, project that U.S. peak electricity demand will grow by about 26% by 2035, which would strain the grid's current capacity. Moreover, powe ...

The Trump Administration's AI initiative has massive implications for America's energy grid.President Trump recently announced an executive order to initiate the Genesis Mission, a federal initiative under the Department of Energy, aimed at accelerating the development of artificial intelligence (AI) for various purposes, including scientific research and national security.Essentially, AI is a race that America doesn't want to lose. Of course, AI consumes a significant amount of energy, to the point that da ...

Constellation Energy is one of the largest producers of electricity from nuclear power, and investors are excited about its future.Constellation Energy (CEG 1.46%) recently rose to roughly $410 per share. That is the stock's all-time and 52-week high. The shares have since pulled back, dropping around 10% or so. Is this the time to act, or should investors hold off on buying this uniquely positioned electricity provider?There's a big opportunity for Constellation EnergyThe major story for Constellation Ener ...