Core Insights - Constellation Energy Corporation (CEG) is the largest provider of nuclear energy in the U.S., benefiting from its reliable and stable carbon-free energy supply [1][9] - The company is positioned to gain from President Trump's executive orders aimed at increasing U.S. nuclear energy capacity from 100 GW to 400 GW by 2050 [2][9] - CEG's growth strategy includes relicensing existing facilities, establishing long-term power purchase agreements, and exploring new reactor installations [3][9] Company Operations - CEG operates a fleet of over 20 reactors across the Midwest, Mid-Atlantic, and Northeast, contributing significantly to the carbon-free electricity supply [4][9] - The company has secured uranium supply contracts extending through the 2030s, mitigating risks associated with nuclear fuel supply [5] - CEG's fleetwide capacity factor exceeds 94%, indicating high levels of effectiveness and reliability compared to industry averages [5] Market Performance - CEG's stock has increased by 26.4% over the past three months, outperforming the industry average growth of 16.8% [8][9] - The company is trading at a forward 12-month price-to-earnings ratio of 28.03X, higher than the industry average of 21.82X [11] Earnings Estimates - The Zacks Consensus Estimate indicates a 9% increase in earnings per share for 2025 and a 22.38% increase for 2026 [12] - Current estimates for the upcoming quarters show expected earnings per share of 2.28 for Q2 2025 and 2.79 for Q3 2025 [13]

Core Viewpoint - Constellation Energy Corporation (CEG) has seen its shares increase by approximately 11.7% over the past month, outperforming the S&P 500, raising questions about the sustainability of this positive trend leading up to the next earnings release [1] Earnings Estimates - Fresh estimates for Constellation Energy Corporation have shown an upward trend over the past two months [2] VGM Scores - Constellation Energy Corporation currently holds an average Growth Score of C, a Momentum Score of B, and a Value Score of C, resulting in an aggregate VGM Score of C, indicating a middle-tier position in investment strategy [3] Outlook - The company has a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns from the stock in the upcoming months [4] Industry Performance - Constellation Energy Corporation is part of the Zacks Alternative Energy - Other industry, where TC Energy (TRP) has gained 0.6% over the past month. TC Energy reported revenues of $2.52 billion for the quarter ended March 2025, reflecting a year-over-year decline of 19.8% [5] - TC Energy is projected to post earnings of $0.58 per share for the current quarter, indicating a year-over-year change of -15.9%, with a Zacks Consensus Estimate change of +0.3% over the last 30 days, also holding a Zacks Rank of 3 (Hold) and a VGM Score of C [6]

Core Viewpoint - The increasing demand for energy from data centers, particularly driven by generative AI, is expected to benefit nuclear power stocks, especially Constellation Energy, which has secured significant contracts with major tech companies like Microsoft and Meta [1][2][10]. Group 1: Energy Demand and Nuclear Power - Data center energy demand is projected to grow by 160% by 2030, with a significant portion attributed to AI-specific servers [1][5]. - In 2024, data centers consumed 200 terawatt-hours of energy, with AI-specific servers accounting for 27% to 38% of that total [5]. - By 2028, the share of electricity consumed by data centers in the U.S. is expected to triple from 4.4% to 12%, with AI's energy consumption rising at an average annual rate of 32.6% to reach 244 terawatt-hours [6]. Group 2: Constellation Energy's Position - Constellation Energy has seen its stock rise by 29% this year, driven by contracts to supply nuclear power to Microsoft and Meta [2][10]. - The company signed a 20-year agreement with Microsoft worth approximately $16 billion and a similar agreement with Meta for about 1.1 gigawatts of nuclear power starting in 2027 [10][11]. - Despite the positive contracts, Constellation's stock has experienced volatility, with analysts suggesting it may be overvalued [3][13]. Group 3: Market Dynamics and Future Outlook - The nuclear energy sector currently provides 20% of U.S. electricity, but this is expected to increase as demand for nuclear power grows [7]. - Major tech companies, including Meta, Amazon, and Google, have committed to tripling the world's nuclear capacity by 2050, although new capacity may take years to develop [9]. - Talen Energy, another player in the market, has potential upside if it can resolve regulatory issues related to its data center deal with AWS [17].

Constellation Energy Today CEG Constellation Energy $313.03 -0.40 (-0.13%) 52-Week Range $155.60 ▼ $352.00 Dividend Yield 0.50% P/E Ratio 26.33 Meta and Constellation have announced the signing of a 20-year power purchase agreement (PPA), which covers over 1.1 gigawatts (GW) of nuclear energy. The agreement would allow Constellation's Clinton Clean Energy Center to continue operating. The company slated the plant to close in mid-2027, when Illinois' Future Energy Jobs Act was set to end its financial suppor ...

Core Viewpoint - Meta Platforms is investing in artificial intelligence technologies that require substantial energy, leading to partnerships with clean energy producers to secure power for its operations [1][2]. Group 1: Power Purchase Agreements - Meta has signed a 20-year power purchase agreement (PPA) with Constellation Energy for the entire output of the Clinton Clean Energy Center, which produces 1,121 megawatts (MW) [4][5]. - This agreement will provide Meta with clean and reliable energy, supporting its goal of powering 100% of its operations with clean power [5][6]. - The deal is set to begin in June 2027 and will also support the relicensing of the nuclear facility, allowing for an expansion of its output by 30 MW [4][9]. Group 2: Nuclear Power's Role - Nuclear power offers a stable energy source, operating continuously throughout the year, which is essential for the energy demands of data centers [6]. - Meta's agreement with Constellation Energy is part of a broader strategy, as the company is in discussions for additional power sources, aiming to secure 1 to 4 gigawatts (GW) from advanced energy technologies [7][8]. Group 3: Economic Impact and Growth - The Clinton Clean Energy Center was at risk of closure due to financial losses, but the Future Energy Jobs Act has provided support to keep it operational until mid-2027 [8][9]. - Meta's PPA will extend the economic viability of the plant for another two decades, enhancing Constellation Energy's growth outlook [9][12]. - The demand for nuclear energy from technology companies is driving a surge in Constellation Energy's earnings, with expectations of over 13% compound annual growth through 2030 [12][13]. Group 4: Industry Trends - The increasing energy needs of AI technologies are prompting partnerships between tech companies and energy producers, making investments in companies like Constellation Energy attractive for those looking to capitalize on the AI megatrend [14].

Core Viewpoint - Meta Platforms has signed a 20-year power purchase agreement with Constellation Energy, expecting to pay approximately $80 per megawatt-hour for energy from the Clinton nuclear plant, which is cheaper than Microsoft's similar agreement at $110 per megawatt-hour for energy from the Three Mile Island plant [1][2]. Group 1 - The price difference in expected electricity costs between Meta and Microsoft is attributed to the need to restart a reactor at the Three Mile Island plant, which had been closed for economic reasons since 2019, with a restart cost estimated at $1.6 billion [2]. - Meta's agreement reflects a broader trend among tech giants willing to pay a premium for nuclear energy, which is seen as a reliable, carbon-free power source to meet the increasing electricity demands driven by AI [2]. - Constellation Energy plans to invest in enhancing the power generation capacity of the Clinton plant and is considering building a new reactor at the site, which has already received federal approval for a second unit [2].

Group 1 - Meta Platforms has signed a 20-year power purchase agreement with Constellation Energy, likely at a lower price than Microsoft's similar agreement [1] - Meta is expected to pay approximately $80 per megawatt-hour for energy from the Clinton nuclear plant, compared to Microsoft's $110 per megawatt-hour from the Three Mile Island plant [1][2] - The difference in expected electricity prices is attributed to the need to restart a reactor at the Three Mile Island plant, which has incurred significant costs [2] Group 2 - Tech giants are willing to pay a premium for nuclear energy, viewing it as a carbon-free power source that aligns with their climate goals amid rising electricity demands from AI [2] - Nuclear power is recognized as more expensive than fossil fuels, but companies acknowledge the necessity of investing in it for future energy needs [2] - Constellation plans to invest in enhancing the generation capacity of the Clinton plant and is considering building a new reactor at the site [2]

Meta signed a 20-year deal with a nuclear plant in Illinois, becoming the latest tech giant to partner with the industry to power an expansion into artificial intelligence.Starting in June 2027, Meta will fund approximately 1.1 gigawatts of energy from Constellation Energy’s Clinton Clean Energy Center in Clinton, Ill., which is the entire output from the site’s sole reactor. Just one gigawatt is enough to power nearly 1 million homes. 3 Meta on Tuesday announced it has signed a 20-year deal with a Conste ...

Core Viewpoint - Meta is investing billions of dollars to purchase clean energy attributes from Constellation Energy's Clinton Clean Energy Center, ensuring the nuclear power plant's operation through 2047, which reflects a growing trend among tech companies to support the nuclear industry for sustainable energy solutions [1][4][5]. Group 1: Deal Details - Meta will buy all clean energy attributes from the 1.1 gigawatt Clinton Clean Energy Center starting in June 2027 [1]. - The financial terms of the deal were not disclosed, but it is described as a multi-billion-dollar agreement that will assist Constellation in relicensing the plant and securing a customer for the license duration [3]. - The deal is seen as a way to prevent the potential closure of the Clinton reactor, which faced competition from cheaper energy sources [5]. Group 2: Industry Context - The nuclear power industry has gained renewed interest from big tech companies, including Meta, due to the increasing demand for energy driven by AI and cloud computing [4]. - Prior to this deal, the Clinton reactor was at risk of shutdown due to competition from natural gas, but legislative subsidies allowed it to remain operational [5]. - Meta has shown a strong interest in nuclear energy, soliciting proposals for new nuclear plants capable of generating between 1 to 4 gigawatts, receiving over 50 submissions from various states [7]. Group 3: Strategic Implications - The partnership with Meta allows Constellation to replace the expiring zero-emission credit program, ensuring the long-term operation of the Clinton plant without relying on ratepayer support [7]. - This deal follows a similar agreement between Constellation and Microsoft, indicating a trend of tech companies becoming patrons of nuclear energy [8].

Market Performance - The S&P 500 recorded its best May performance since 1990, rising over 6% in the month, marking its largest monthly gain since November 2023 [1] - SPDR S&P 500 ETF Trust (SPY) gained 6.3% over the past month, with five highlighted stocks gaining more than 25% [2] Key Drivers of Market Rally - The stock rally was primarily driven by a resurgence in tech stocks due to strong earnings and investor confidence in AI-driven growth [3] - Easing trade tensions contributed to market optimism, with the U.S. temporarily reducing tariffs on Chinese goods from 145% to 30%, and China lowering retaliatory duties from 125% to 10% [4] - The U.S. Court of International Trade blocked much of Trump's existing tariff policy, providing a temporary boost to equities [5] - Economic data showed mixed signals, with the Federal Reserve's preferred inflation measure cooling and the U.S. labor market adding 177,000 jobs, while consumer spending showed signs of slowdown [6] SPY Fundamentals - SPY holds 503 stocks, with no single stock accounting for more than 7% of its assets, indicating a balanced portfolio [8] - The fund has an AUM of $603.5 billion, charges 9 bps in fees per year, and trades an average of 68 million shares daily [9] Best-Performing Stocks - NRG Energy Inc. saw a 36% increase in the past month, with a solid earnings estimate revision of 19 cents and an estimated growth of 10.54% [10] - Seagate Technology jumped about 28% in a month, with a positive earnings estimate revision of 8 cents and an estimated growth of 516.3% [11] - Constellation Energy gained 26.8% in a month, despite a negative earnings estimate revision of 7 cents, with an expected growth rate of 9% [12] - Insulet Corporation rose 26.5%, with a positive earnings estimate revision of 3 cents and an estimated growth rate of 33% [13] - Microchip Technology gained over 25% in a month, with a solid earnings estimate revision of 19 cents and expected earnings to break even this fiscal year [14]