Core Insights - Constellation Energy Inc's stock has increased by 45% in 2025 and is currently trading at $328.03 after a 20-year agreement to supply nuclear power to Meta Platforms' data centers [1] - The stock is approaching its record high of $352, previously reached on January 23, and is currently facing resistance around the $330 level [2] - The stock has a year-to-date gain of 47.2% and is trading above all relevant moving averages [2] Options Activity - Options trading volume for Constellation Energy is significantly high, with current volume running at five times the intraday average, including 20,000 calls and 11,000 puts traded [2] - The most popular options contract is the weekly 5/6 365-strike call, indicating bullish sentiment among traders [2] - Prior to the recent announcement, options traders were already bullish, with a call/put volume ratio of 2.27, placing it in the 99th percentile of annual readings [3] Volatility and Expectations - Constellation Energy's Schaeffer's Volatility Scorecard (SVS) is at 94 out of 100, suggesting that the stock typically exceeds options traders' volatility expectations [3]

Core Insights - Meta Platforms has entered a 20-year power purchase agreement with Constellation Energy Corporation for nuclear power from the Clinton Clean Energy Center, starting in 2027, to support its clean energy goals [1][3] - The deal will enable the Clinton Clean Energy Center to continue operations and contribute to the local grid, with Meta purchasing the plant's clean energy attributes to match 100% of its electricity use with clean and renewable energy [4] - The agreement will increase the nuclear plant's output by 30 megawatts through nuclear uprates, ensuring the preservation of over 1,000 jobs in the community [4][5] Industry Context - The deal reflects a growing trend among tech companies, including Meta, Microsoft, and Google, to seek nuclear energy as a reliable electricity source to support their expanding AI initiatives [7]

ToplineFacebook parent Meta announced an unprecedented deal with Constellation Energy, the largest American nuclear power plant operator, cementing Meta’s turn to turn to nuclear energy to power its energy intensive, generative artificial intelligence initiatives, and sending Constellation shares surging.AI has made nuclear energy hot again. Pictured is a Constellation nuclear plant in Pennsylvania. Getty ImagesKey FactsMeta inked an agreement to buy all power produced in Constellation’s plant in Clinton, I ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Market Overview - US stock index futures are all down, with Dow futures down 0.21%, S&P 500 futures down 0.14%, and Nasdaq futures down 0.04% [1] - European indices show mixed performance: DAX up 0.02%, FTSE 100 up 0.13%, CAC 40 down 0.24%, and Euro Stoxx 50 down 0.21% [2][3] - WTI crude oil increased by 0.66% to $62.93 per barrel, while Brent crude oil rose by 0.59% to $65.01 per barrel [3][4] Trade Policies and Economic Impact - The US government is urging countries to submit their best tariff proposals by Wednesday, aiming to accelerate trade negotiations ahead of a self-imposed deadline [5] - The OECD reports that Trump's trade policies have significantly impacted the US economy, leading to a downward revision of global growth forecasts from 3.3% to 2.9% for 2024, with the US growth forecast cut from 2.8% to 1.6% [6] - Trump's proposal to double tariffs on aluminum and steel to 50% has caused a surge in futures prices, with aluminum contracts rising 54% to the highest level since 2013 [6] Company News - NIO reported Q1 revenue of 12.035 billion yuan, a year-on-year increase of 21.5%, but below market expectations of 12.35 billion yuan; net loss widened by 30.2% to 6.75 billion yuan [7] - Constellation Energy has signed a 20-year power purchase agreement with Meta, which may support new reactor plans due to increased electricity demand from AI [7] - Merck's $3 billion acquisition offer for MoonLake was rejected, leading to a 20% pre-market surge in MoonLake's stock [8] - Uber appointed its first COO in six years to advance its autonomous driving strategy [8] - TSMC acknowledged some impact from US tariffs but noted strong AI demand continues to exceed supply [9]

Core Insights - Meta has signed a 20-year agreement to purchase nuclear power from Constellation Energy to meet the energy demands of its data centers [1] - The deal will provide Meta with approximately 1.1 gigawatts of energy from the Clinton Clean Energy Center in Illinois, supporting the plant's operation and relicensing [2] - This partnership is part of a broader trend of tech companies collaborating with the nuclear industry to secure clean energy sources [4][5] Company-Specific Developments - The agreement will help maintain the Clinton plant's operation, which was at risk of closure due to the expiration of its zero-emission credit [2] - The deal will also expand the plant's output by 30 megawatts, although specific terms were not disclosed [3] - Meta's commitment to nuclear energy marks its first official engagement in this sector, following a request for proposals to find nuclear energy developers [6] Industry Trends - The collaboration between tech giants and the nuclear sector is increasing, with companies like Microsoft, Google, and Amazon also making significant investments in nuclear energy [4][5] - The U.S. government is pushing for faster regulatory approvals and aims to quadruple nuclear energy by 2050, which may benefit the industry [7][8] - Constellation is considering applying for a new permit to potentially build a small modular reactor at the Clinton site, indicating ongoing developments in nuclear energy infrastructure [9]

MARSEILLES, ILLINOIS - MAY 23: A sign sits at the entrance to Constellation Energy's LaSalle Clean ... More Energy Center nuclear power plant on May 23, 2025 near Marseilles, Illinois. (Photo by Scott Olson/Getty Images)Getty Images Constellation Energy Group (NASDAQ: CEG) has seen a significant boost in its stock performance over the past month. This surge is primarily fueled by investor excitement following recent executive orders from U.S. President Donald Trump. These orders aim to streamline the nuclea ...

Core Insights - The demand for clean electricity is sharply rising due to factors such as urbanization, industrial growth, and the increasing need for air conditioning and electric vehicles [1][2] - Nuclear energy is positioned as a reliable solution for consistent power supply, offering high-capacity factors and zero emissions, unlike solar and wind energy [2][3] Company Analysis - Constellation Energy Corporation (CEG) is the largest nuclear power plant operator in the U.S., contributing approximately 10% of the nation's clean energy production, with a nuclear fleet capacity factor of 94.1% in Q1, up from 93.3% year-over-year [4] - Dominion Energy (D) is actively exploring next-generation nuclear technologies, including a partnership with Amazon to develop Small Modular Reactors (SMRs), which offer advantages like passive safety and scalability [5] Earnings Estimates - The Zacks Consensus Estimate for Constellation Energy's earnings per share for 2025 and 2026 has increased by 0.75% and 4.54%, respectively, over the past 60 days [7] - Dominion's earnings per share estimates have remained unchanged for 2025 but decreased by 0.56% for 2026 during the same period [9] Strategic Investment Plans - Constellation Energy plans capital expenditures of nearly $3 billion and $3.5 billion for 2025 and 2026, with 35% allocated for nuclear fuel acquisition [10] - Dominion intends to invest $10.8 billion in 2025 and $50 billion from 2025 to 2029 to enhance its renewable operations [10] Financial Metrics - Constellation Energy's return on equity (ROE) stands at 21.93%, significantly higher than Dominion's 9.51% [11] - The current dividend yield for Constellation Energy is 0.52%, while Dominion's is 4.74% [12] Investment Outlook - Both CEG and D are significant players in the energy sector, with substantial investments in nuclear power, presenting growth opportunities [14] - Constellation Energy is currently favored as a better investment option with a Zacks Rank 2 (Buy), while Dominion holds a Zacks Rank 3 (Hold) [14]

Core Themes - Utilities stocks are performing well in 2025, with the Utilities Select Sector SPDR Fund (XLU) up approximately 9.3% and nearing its all-time high, offering a total return of about 12% including a dividend yield of 2.76% [1][2] - Utilities are considered defensive stocks due to the constant demand for power, regardless of economic conditions, and a regulatory framework that supports both consumers and companies [2][16] - The demand for utilities is expected to remain strong even if the economy improves, making utilities stocks a viable option for a diversified portfolio [3][16] Constellation Energy - Constellation Energy's stock forecast indicates a 12-month price target of $285.79, with a current price of $292.40, reflecting a moderate buy rating based on 15 analyst ratings [4] - The company reported revenue of $6.79 billion, exceeding analyst expectations by 24.7%, although earnings per share of $2.14 fell short of the $2.22 forecast [5] - The stock has increased by 18% since the earnings report, driven by the announcement of long-term agreements to deliver nuclear power for data centers [6][7] NRG Energy - NRG Energy's stock forecast shows a 12-month price target of $140.75, with a current price of $159.63, indicating a moderate buy rating based on 8 analyst ratings [9] - The company is benefiting from data center growth and has a diverse power portfolio, including coal, oil, solar, and battery storage [9][10] - NRG's stock has risen over 77% as of May 20, 2025, and offers a dividend yield of 1.1%, although it is currently considered overbought [11] Exelon - Exelon's stock forecast suggests a 12-month price target of $47.30, with a current price of $44.26, and a hold rating based on 10 analyst ratings [12] - The stock has declined about 6% in May due to a $173 million settlement related to misleading investors about bribery accusations, overshadowing a strong earnings report [13][14] - Despite lower year-to-date gains compared to peers, Exelon offers the highest dividend yield at 3.6% and may be well-positioned for growth in the upcoming quarters [14][16] Overall Market Outlook - The utilities sector is expected to outperform in a volatile market, with companies like Constellation Energy, NRG Energy, and Exelon providing compelling investment opportunities [16] - The sector is benefiting from structural demand and may serve as both a defensive play and a source of meaningful returns in the near future [16]

Industry Overview - Nuclear energy is increasingly recognized as a vital solution for meeting the world's growing electricity demands and supporting the transition to cleaner power sources, providing a constant and reliable supply of clean energy [1][2] - The demand for clean electricity is driven by industrial expansion, urbanization, rising global temperatures, the development of AI-powered data centers, and the adoption of electric vehicles [4] Investment Potential - Nuclear energy-related stocks, such as Duke Energy Corporation, Dominion Energy, and Constellation Energy Corporation, are becoming attractive investment options due to their ability to deliver steady output compared to other clean energy sources [2][6] - The International Energy Agency (IEA) projects that annual investment in nuclear energy will exceed $150 billion by 2030, up from $65 billion, with installed nuclear capacity potentially exceeding 1,000 gigawatts by 2050 [3] Company Insights Duke Energy - Duke Energy operates 11 nuclear units capable of producing nearly 10,700 megawatts of clean electricity, with nuclear power accounting for 27.5% of its total electricity output in 2024 [8] - The company plans to expand its nuclear capacity by nearly 250 megawatts by 2031 and has secured agreements to monetize over $500 million in nuclear production tax credits [9] - Duke Energy received approval to operate its Oconee Nuclear Station for another 20 years and is pursuing license renewals for all its reactors [10][11] Dominion Energy - Dominion Energy owns four nuclear power stations, generating nearly 40% of its total production, and is evaluating next-generation nuclear technologies, including small modular reactors (SMRs) [12][13] - The company aims to achieve net-zero carbon emissions by 2050, with nuclear power serving as a consistent, carbon-free solution [14] Constellation Energy - Constellation Energy is the largest nuclear power plant operator in the U.S., accounting for around 10% of the nation's total clean energy production [15] - The company has secured multiple uranium supply contracts extending through the 2030s to ensure long-term nuclear fuel security and is modernizing its nuclear plants to improve performance [16] - Constellation Energy is investing to expand its nuclear capacity and is evaluating the addition of up to one gigawatt of new carbon-free energy capacity over the next 10 years [17]