All right, let's do calls of the day. Caterpillar target to 414 from 396. Truis reiterates that as a buy.Weiss, you own the stock. Yeah, again for me it's a hedge against a heavy heavy tech portfolio and growth portfolio. Uh we got some good news today on the nuclear plant that's uh going to be built in New York if they get approvals.So obviously that'll help Caterpillar. So I I think that with the reshoring on of America, which has been going on now for a number of years, it'll help them quite a bit. They' ...

Industry Overview - The artificial intelligence (AI)-powered data center industry is experiencing significant growth, leading to increased demand for nuclear energy as a power source [1] - The U.S. Department of Energy predicts that data center energy usage will "double or triple by 2028," following a doubling over the past decade [2] - Recent executive orders aim to increase U.S. nuclear energy capacity from 100 gigawatts (GW) to 400 GW by 2050, focusing on reactors near military installations and AI data centers [3] Company Insights: Constellation Energy Corp. (CEG) - Constellation Energy is a leading U.S. energy company with a strong focus on clean and nuclear energy, planning a $5.1 billion capital expenditure through 2025 to enhance nuclear fuel acquisition [6] - The company has secured a 20-year agreement with Microsoft to revive the Three Mile Island nuclear plant, involving a $1.6 billion investment to provide carbon-free electricity for data centers [8] - CEG has also signed a 20-year energy deal with Meta Platforms to supply 1.1 gigawatts of nuclear power for its AI data centers starting in 2027 [9] - Expected revenue and earnings growth rates for CEG are 0.9% and 9%, respectively, with a recent 0.7% improvement in the earnings consensus estimate [10] Company Insights: Talen Energy Corp. (TLN) - Talen Energy is an independent power producer operating various energy sources, including nuclear, and is developing battery storage projects [12] - TLN has expanded its nuclear energy partnership with Amazon, committing to supply 1,920 megawatts of carbon-free nuclear power through 2042 [13][14] - The expected revenue and earnings growth rates for TLN are 25.1% and over 100%, respectively, with a 2.9% improvement in the earnings consensus estimate for the next year [14]

Core Insights - Constellation Energy Corporation (CEG) is significantly benefiting from the Production Tax Credit (PTC) for nuclear energy, which provides a per-kilowatt-hour incentive for electricity generated from eligible resources [1][2][9] - The PTC, part of the Inflation Reduction Act, enhances CEG's revenues, especially during low power market prices, thereby protecting profitability and supporting the operation of nuclear plants [2][9] - CEG anticipates over 13% adjusted operating earnings growth through 2030, driven by PTC benefits, operational improvements, and planned refueling outages [3][9] Financial Performance - CEG's shares have increased by 39.4% over the past three months, outperforming the industry growth of 19.1% [8] - The Zacks Consensus Estimate indicates a 9% increase in earnings per share for 2025 and a 22.09% increase for 2026 [11] - CEG is trading at a premium with a forward 12-month price-to-earnings ratio of 29.43X compared to the industry average of 20.8X [14] Revenue Protection Mechanism - The PTC provides crucial downside protection for CEG's nuclear plants when revenues fall below $44.75/MWh, with inflation adjustments enhancing this safeguard [4][9] - CEG expects an incremental base revenue of $500 million in 2028, contingent on inflation adjustments between 2.3% and 2.6% [4] Growth Initiatives - CEG's consistent PTC earnings allow for investments in growth initiatives such as repowering wind assets, extending plant licenses, and acquiring new assets [3][5]

Core Viewpoint - Constellation Energy Corporation (CEG) shows potential as a stock pick due to surpassing key technical levels and positive earnings estimate revisions [1][3]. Technical Analysis - CEG has surpassed resistance at the 20-day moving average, indicating a short-term bullish trend [1]. - The 20-day simple moving average (SMA) is favored by traders for its ability to smooth out price fluctuations and signal trend reversals [2]. Earnings Estimates - There have been three upward revisions for CEG's earnings estimates for the current fiscal year, with no downward revisions, leading to an increased consensus estimate [3]. - This combination of positive earnings revisions and technical indicators suggests potential for further gains [3]. Recent Performance - CEG has experienced a rally of 5.8% over the past four weeks, and currently holds a Zacks Rank of 3 (Hold), indicating it may be poised for another upward movement [4].

Core Insights - Constellation Energy Corporation (CEG) is positioned to capitalize on the increasing demand from data centers, with the U.S. data center market projected to reach $308.83 billion by 2030 [1] Company Strategy - CEG's nuclear infrastructure allows it to meet the rising energy needs of power-intensive businesses like data centers by connecting them directly to nuclear energy generation facilities, minimizing the need for long-distance power transmission [2] - The company emphasizes the reliability and carbon-free nature of nuclear power as essential for powering AI data centers, shifting focus from direct power plant supply to potential projects linked to the U.S. electrical grid [3] Key Agreements - Meta has signed a 20-year power purchase agreement with CEG to supply nuclear power for its AI data centers in Illinois, starting in 2027, ensuring a consistent supply of clean energy [4] - Microsoft has also entered a 20-year agreement with CEG to revive the Three Mile Island nuclear plant, with a $1.6 billion investment aimed at providing carbon-free electricity for its expanding data centers [4] Industry Context - Other nuclear-focused companies, such as Xcel Energy and Vistra Corp., are also benefiting from the growing demand for data centers, with Xcel's plants providing about 30% of electricity for its Upper Midwest customers and Vistra investing $2.5 billion in data center energy projects by 2027 [7][8] Stock Performance - CEG's stock has increased by 43.2% over the past three months, outperforming the industry average growth of 22.4% [9][10] - The company is trading at a premium with a forward 12-month price-to-earnings ratio of 28.96X compared to the industry average of 21.66X [12] Earnings Outlook - The Zacks Consensus Estimate indicates an earnings per share increase of 8.77% for 2025 and 22.39% for 2026 for Constellation Energy [14]

Group 1: Company Performance - Constellation Energy Corporation (CEG) closed at $300.51, marking a +2.85% move from the prior day, outperforming the S&P 500's 0.38% gain [1] - The company is predicted to post an EPS of $2.28, indicating a 35.71% growth compared to the equivalent quarter last year, while revenue is expected to be $5.05 billion, showing a 7.69% drop [2] - For the entire year, earnings are forecasted at $9.43 per share and revenue at $23.51 billion, indicating changes of +8.77% and -0.27% respectively compared to the previous year [3] Group 2: Analyst Estimates and Valuation - Recent changes to analyst estimates reflect a favorable outlook on the business health and profitability of Constellation Energy Corporation [4] - The Zacks Rank system currently rates Constellation Energy Corporation as 3 (Hold), with a recent downward shift of 1.27% in the EPS estimate [6] - The company holds a Forward P/E ratio of 30.99, which is a premium compared to the industry average of 19.8, and a PEG ratio of 2.29, compared to the industry average PEG ratio of 2.24 [7] Group 3: Industry Context - The Alternative Energy - Other industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 161, placing it within the bottom 35% of over 250 industries [8]

Core Viewpoint - Constellation Energy Corporation (CEG) has experienced a 30.1% increase in share price year-to-date, outperforming the Zacks Alternate Energy – Other industry's growth of 17.2%, driven by strong nuclear operations and the growing demand for clean energy [1][9]. Group 1: Company Performance - CEG's primary power production is derived from its nuclear fleet, which is well-positioned regarding nuclear fuel supply, supported by long-term uranium contracts extending into the 2030s [4]. - The company accounts for approximately 10% of the nation's total clean energy production and has a nuclear fleet capacity factor of 94.1% in Q1 2025, up from 93.3% in the previous year [5][9]. - CEG's capital expenditures are projected to be nearly $3 billion and $3.5 billion for 2025 and 2026, respectively, with about 35% allocated for nuclear fuel acquisition [6]. Group 2: Strategic Developments - CEG has entered into a 20-year nuclear power purchase agreement with Meta, set to begin in 2027, which supports the relicensing of its Clinton nuclear facility [10]. - The Public Utility Commission of Texas approved CEG's acquisition of Calpine Corporation, enhancing its clean energy capabilities by merging Calpine's low-emission assets with CEG's nuclear fleet [11]. Group 3: Financial Metrics - The Zacks Consensus Estimate for CEG's earnings per share (EPS) indicates a growth of 0.43% for 2025 and 3.5% for 2026 [12]. - CEG has reported an average earnings surprise of 7.41% over the last four quarters, indicating consistent performance [14]. - The company's trailing 12-month return on equity stands at 21.93%, significantly higher than the industry average of 8.35% [19]. Group 4: Shareholder Returns - CEG has authorized a share repurchase program of up to $3 billion, with approximately $841 million remaining as of March 31, 2025 [17]. - The company aims to increase its quarterly dividend by 10% annually, subject to board approval [18].

Group 1: China and US Trade Agreement - China and the US have reached a preliminary agreement framework after two days of negotiations, which will be reported to their respective leaders [4] - The agreement aims to implement the Geneva consensus and address issues related to rare earths and magnets [4] Group 2: Argentina's Economic Measures - Argentina's central bank announced a $2 billion repurchase loan plan to strengthen foreign exchange reserves, with the agreement expected to be finalized on June 11 [8] - The country's risk index has dropped to its lowest level in four years, decreasing over 40% since the beginning of the year [10] - The central bank is transitioning to a market-determined interest rate system as part of significant monetary policy reforms [9][11] Group 3: AI Investments and Developments - Japan plans to enhance its intellectual property competitiveness through AI and advanced technologies, aiming to establish a robust IP system by 2025 [14][15] - The UK government announced a £1 billion investment to increase AI infrastructure and training for 7.5 million AI professionals over the next five years [21][23] - Amazon plans to invest at least $20 billion in Pennsylvania to expand its data center infrastructure for AI and cloud computing, creating 1,250 new high-skilled jobs [32] Group 4: Semiconductor Industry Insights - The global semiconductor market is projected to reach $700.9 billion by 2025, with an 11.2% year-on-year growth driven by demand in AI and cloud infrastructure [36] - Qualcomm announced a $2.4 billion acquisition of Alphawave to accelerate its entry into the data center market [37] - Global semiconductor IP market is expected to reach $8.49 billion in 2024, with a compound annual growth rate of 16.78% [38] Group 5: Automotive Industry Developments - General Motors plans to invest $4 billion in its US factories over the next two years to increase production of popular gasoline models in response to tariffs [44] - GAC Group aims to enter the Argentine market by the second half of 2025, expanding its presence in South America [46] - VinFast reported a 296% year-on-year increase in electric vehicle deliveries in Q1, despite a net loss of approximately $712 million [48][49] Group 6: Robotics and AI Technology - A Chinese research team developed the world's first fully tactile robotic hand, showcasing significant advancements in robotics technology [32][34] - The F-TAC Hand features high-resolution tactile sensors and is designed to enhance the adaptability of robots in uncertain environments [35] Group 7: International Cooperation and Agreements - Chinese Vice President Han Zheng met with French President Macron to discuss strengthening bilateral cooperation and multilateralism [6][7] - Meta signed a 20-year power supply agreement with Constellation Energy to meet the growing electricity demand from AI initiatives [65]

Industry Overview - The AI-powered data center industry is experiencing significant growth, leading to increased demand for nuclear energy, which has become a hot sector on Wall Street over the past year [1] - The U.S. Department of Energy projects that data center energy usage will "double or triple by 2028," following a doubling over the past decade [2] - Executive orders signed by President Trump aim to increase U.S. nuclear energy capacity from 100 GW to 400 GW by 2050, focusing on reactors near military installations and AI data center hubs [3] Company Highlights Constellation Energy Corp. (CEG) - CEG is a leading energy company with a focus on clean and nuclear energy, planning a $5.1 billion capital expenditure through 2025 to acquire nuclear fuel and increase inventory [7] - The company has acquired a 2,645 MW nuclear plant, enhancing its operational capacity in Texas [8] - CEG has entered into a 20-year agreement with Microsoft to revive the Three Mile Island nuclear plant, aiming to provide carbon-free electricity for data centers [9][10] - Expected revenue and earnings growth rates for CEG are -0.3% and 8.8%, respectively, for the current year [12] Vistra Corp. (VST) - VST operates as an integrated electricity and power generation company with a diversified clean energy portfolio, including nuclear assets [13] - The company is positioned to benefit from government contracts and public-private partnerships related to AI infrastructure and grid reliability [15] - Expected revenue and earnings growth rates for VST are 34% and -15.4%, respectively, for the current year [16] Mirion Technologies Inc. (MIR) - MIR provides radiation detection and monitoring products, essential for operational nuclear facilities and next-gen reactors [17][18] - The company is focused on expanding its reach in the nuclear energy sector by collaborating with small modular reactor developers [19] - Expected revenue and earnings growth rates for MIR are 5.3% and 14.6%, respectively, for the current year [20] BWX Technologies Inc. (BWXT) - BWXT manufactures nuclear components and operates in both government and commercial sectors [21] - The company is expanding its commercial power segment and is involved in developing micro-nuclear reactors [22] - Expected revenue and earnings growth rates for BWXT are 12.9% and 6.6%, respectively, for the current year [23] Cameco Corp. (CCJ) - CCJ is one of the largest uranium producers globally, supplying uranium for clean electricity generation in nuclear plants [24] - The company operates through three segments: Uranium, Fuel Services, and Westinghouse, providing various services and components for nuclear reactors [25] - Expected revenue and earnings growth rates for CCJ are 7.5% and 91.8%, respectively, for the current year [26]

Group 1 - AI infrastructure stocks have rebounded significantly after a sharp decline earlier in the year, driven by renewed investments from major tech companies, boosting investor confidence in the sector [1] - Two stock portfolios tracked by Goldman Sachs have performed well, with one focusing on AI data centers and electrical equipment stocks rising by 52% and the other tracking companies providing power to data centers increasing by 39% since April [1] - Notable companies include Vertiv Holdings, which has surged by 94% since April 4, and Constellation Energy, which has increased by 75% during the same period [1] Group 2 - Major tech companies like Amazon, Alphabet, Microsoft, and Meta continue to invest heavily in AI, alleviating concerns about the sustainability of funding for AI infrastructure companies [1][4] - Capital expenditures to support AI demand have increased by 16% since the beginning of the year, according to Bloomberg analyst Robert Schiffman [1] - The recent earnings season has bolstered investor confidence, with large tech firms indicating ongoing investments in AI development, including Meta's commitment to its multi-billion dollar AI investment plan [4] Group 3 - The stock performance of AI infrastructure companies was initially strong due to high expectations for AI's commercial potential, leading to significant investments in data centers [4] - Investor sentiment improved after former President Trump announced a pause on most tariff measures in early April, contributing to a stock market rally [4] - Amazon plans to invest $10 billion in expanding its data center facilities in North Carolina to support AI and cloud computing technologies [4] Group 4 - Concerns about a potential trade war and its impact on global economic growth could negatively affect investor confidence in AI investments [5] - If the economy enters a recession, profits may be pressured, leading companies to cut back on AI spending, although this is not the base case expectation [7] - The emergence of competition from companies like DeepSeek, which has developed a system at a fraction of the cost of larger U.S. developers, poses a challenge to the AI sector [7] Group 5 - The demand for AI infrastructure is growing, supported by initiatives like the "Stargate" project launched by the White House, which plans to invest $500 billion in AI infrastructure over the next four years [7]