Energy Sector Performance - Energy stocks are the worst performing sector, showing a 2.0% loss in afternoon trading [1] - Diamondback Energy, Inc. (FANG) and ONEOK Inc (OKE) are lagging with losses of 6.0% and 5.4% respectively [1] - The Energy Select Sector SPDR ETF (XLE) is down 1.7% on the day but up 4.77% year-to-date [1] - Year-to-date, Diamondback Energy, Inc. is up 14.21% and ONEOK Inc is up 31.80% [1] - FANG and OKE together make up approximately 6.4% of the underlying holdings of XLE [1] Utilities Sector Performance - The Utilities sector is the next worst performing sector, showing minimal gains [2] - Vistra Corp (VST) and Constellation Energy Corp (CEG) have losses of 2.5% and 1.3% respectively [2] - The Utilities Select Sector SPDR ETF (XLU) is down 0.3% in midday trading but up 28.76% year-to-date [2] - Year-to-date, Vistra Corp is up 203.10% and Constellation Energy Corp is up 122.88% [2] - VST and CEG together account for approximately 10.1% of the underlying holdings of XLU [2] Overall Market Snapshot - Seven sectors are up on the day while the Energy sector is down [3] - A relative stock price performance chart compares the performance of various sectors [3] Sector Performance Summary - Materials sector is up 2.2%, Industrial up 1.4%, Services up 1.3%, Consumer Products up 1.2%, Technology & Communications up 1.0%, Healthcare up 0.5%, Financial up 0.2%, Utilities at -0.0%, and Energy at -2.0% [4]

Core Insights - Constellation Energy Corporation (NASDAQ:CEG) is currently viewed as an exciting AI stock, with a price target raised to $347.00 from $293.00 by Jefferies analyst Paul Zimbardo, while maintaining a Hold rating [1] - The stock has experienced a significant increase of approximately 90% since early April lows, despite losing momentum since early August earnings due to a lack of deal announcements [1][2] - The analyst highlights that CEG's stock price reflects a high valuation, incorporating future data center awards, which leads to a cautious stance with a Hold rating [2][3] Financial Metrics - CEG's stock price is estimated to include around $142 per share attributed to data center value, which constitutes about 47% of the stock price [3] - The analysis assumes a 75% eligibility for CEG's nuclear portfolio, equating to 13GW at $88/MWh, with the remaining 5GW at $80/MWh, alongside Clinton/Crane Power Purchase Agreements (PPAs) [3] Market Position - Despite the increase in the price target, CEG is considered relatively expensive compared to its peers, embedding a significant market share of future data center awards [3] - The company specializes in clean, carbon-free energy solutions, positioning itself within a growing sector [3]

Key Points Oracle missed earnings last night, but delivered great guidance for AI revenue growth. Constellation provides power for AI services. 10 stocks we like better than Constellation Energy › Constellation Energy Group (NASDAQ: CEG) stock jumped 4.8% through 10:50 a.m. ET this morning, and it's not hard to figure out why. Last night, Oracle reported an earnings miss -- but strong guidance -- that's sending that stock up more than 40% this morning. Investors are making the leap from Oracle, whi ...

Core Viewpoint - Constellation Energy (CEG) is positioned for long-term growth in the energy sector, particularly through its focus on nuclear energy and the development of Small Modular Reactors (SMRs) [1][3][6] Company Overview - CEG operates without regulatory constraints, allowing for flexible investments in the power grid's future, which presents both growth opportunities and increased risks [1] - The company generates and sells electricity under contract, with pricing based on market conditions [1] Stock Performance - As of September 8, 2025, Jefferies maintained a "Hold" rating for CEG, with a stock price of approximately $300.25, despite a recent 2.51% decline [2] - CEG's stock has surged by 62.5% over the past year, outperforming the industry's growth of 57.1%, although it has seen a 5.5% decline in the past month [4][6] - Current stock price is $300.09, reflecting a 0.49% decrease, with a market capitalization of approximately $93.75 billion [5] Strategic Initiatives - CEG is actively developing SMRs to address rising energy demands from sectors such as AI and data centers, providing a scalable and carbon-neutral power solution [3][6] - The modular design of SMRs allows for quicker assembly, reducing construction delays compared to traditional reactors [3]

Group 1: Company Overview - Constellation Energy is the largest operator of nuclear power plants in the U.S., with a nuclear capacity of approximately 22.1 gigawatts, significantly ahead of its nearest competitor at 6.3 gigawatts [5] - The company is not a regulated utility, allowing it greater flexibility to invest in the power grid and pursue growth opportunities [2][4] - Constellation primarily generates and sells electricity under contracts to various customers, including utilities and corporations, without the constraints of government regulation [4] Group 2: Future Growth and Strategy - The company plans to focus on growth in its nuclear business over the next five years, including potential investments in extending the life of existing reactors and reopening shut-down reactors [8] - Constellation has signed significant contracts, including a 20-year deal with Meta Platforms and a 10-year contract with the U.S. government, indicating strong demand for nuclear power [9] - The company is also diversifying its portfolio through the acquisition of Calpine, a large producer of electricity from natural gas and hydroelectric sources, while maintaining its leadership in nuclear power [7][8] Group 3: Market Dynamics and Financial Outlook - State-backed programs currently consume a portion of Constellation's nuclear capacity, but these programs are expected to end in the next five years, allowing the company to sell more nuclear energy at market prices [10] - Management anticipates that this shift will lead to increased earnings as the company can charge higher market-based rates for its nuclear power [10] - The stock has appreciated over 600% in the past five years, reflecting investor interest in the company's growth potential, although caution is advised as the stock may experience volatility [12]

Core Insights - Constellation Energy Corporation (CEG) focuses on Power Purchase Agreements (PPAs) to achieve its goal of providing carbon-free energy, particularly through long-term contracts for nuclear facilities and renewable energy projects via its Constellation Offsite Renewables (CORe) program [1][5] PPA Benefits - PPAs provide a steady, long-term income source by ensuring payments for power generated over a predetermined period, allowing businesses to support renewable energy initiatives [2] - CEG's CORe product enables efficient offsite renewable energy contracts, aligning with corporate sustainability goals [2] Strategic Partnerships - CEG has expanded its PPA portfolio with major corporations, including 20-year nuclear agreements with Meta and Microsoft [3] - In January 2025, CEG secured a contract exceeding $1 billion to supply nuclear electricity and energy-saving technologies for federal buildings, with plans to add over 1,100 MW of sustainable energy by 2028 [4] Industry Trends - Utilities are increasingly utilizing PPAs for financial stability and to promote renewable energy expansion, with companies like Vistra and Dominion Energy also relying on long-term PPAs [6] Earnings Estimates - The Zacks Consensus Estimate indicates an earnings per share increase of 8.54% for 2025 and 25.99% for 2026 [7] Stock Performance - CEG shares have risen 33.1% over the past six months, outperforming the industry growth of 27.7% [8][12] - CEG is trading at a premium with a forward 12-month price-to-earnings ratio of 27.89X compared to the industry average of 20.51X [10]

Core Insights - Constellation Energy Corporation (CEG) is focusing on Small Modular Reactors (SMRs) to meet increasing energy demands from sectors like data centers and artificial intelligence operators, viewing SMRs as a scalable and carbon-neutral power solution [1][9] - The modular design of SMRs allows for factory prefabrication and quicker on-site assembly, significantly reducing construction delays and upfront costs, making projects less risky and more appealing for financing [2] - CEG plans to utilize existing nuclear sites for SMR deployment, enhancing efficiency and leveraging current infrastructure [3] Strategic Partnerships - CEG signed a Memorandum of Understanding with Rolls-Royce Holdings plc in 2020 to explore the operation of compact nuclear power stations in the UK and internationally, utilizing CEG's operational experience to support SMR development [4] Regulatory and Development Plans - CEG is assessing options to extend its existing early site permit or obtain a new construction permit from the Nuclear Regulatory Commission (NRC) for developing an advanced nuclear reactor or SMR at the Clinton Clean Energy Center site [5] Market Position and Competitors - Companies benefiting from SMRs include NuScale Power Corporation, which has the only NRC-approved small modular reactor technology ready for deployment, and GE Vernova, which is advancing its BWRX-300 design to secure early projects in the market [6][7] Financial Performance - The Zacks Consensus Estimate indicates an EPS growth of 8.54% for 2025 and 25.99% for 2026, reflecting positive financial outlooks for CEG [8] - CEG shares have increased by 62.5% over the past year, outperforming the industry growth of 57.1% [9][13] Valuation Metrics - CEG is currently trading at a forward 12-month price-to-earnings ratio of 28.67X, which is higher than the industry average of 20.83X, indicating a premium valuation [11]

Core Insights - Constellation Energy Corporation (CEG) is leveraging its diverse power generation portfolio to gain a competitive advantage in the clean energy sector, addressing the increasing demand for reliable and carbon-free energy while effectively managing energy transitions [1][2]. Group 1: Power Generation Portfolio - The company has a wide range of energy solutions, including nuclear, solar, and wind power, which allows it to adapt to changing market conditions and customer demands [2][3]. - CEG's total owned sources of electric supply reached 208,434 gigawatt-hours (GWh) in 2024, with nuclear contributing 181,711 GWh, natural gas and oil providing 20,971 GWh, and renewables accounting for 5,752 GWh [4][8]. - The diverse portfolio enables CEG to manage price volatility through hedging strategies and potentially benefit from favorable regulatory environments, contributing to revenue growth and profitability [2][4]. Group 2: Market Position and Performance - CEG is positioned as a leader in providing reliable, zero-carbon electricity, producing about 10% of the country's carbon-free electricity [3][4]. - The Zacks Consensus Estimate indicates an increase in earnings per share (EPS) of 8.54% for 2025 and 25.99% for 2026 [7][8]. - CEG's shares have appreciated by 17.3% over the past six months, although this is lower than the industry's growth of 23.3% [12]. Group 3: Valuation Metrics - CEG is currently trading at a premium with a forward 12-month price-to-earnings ratio of 28.64X, compared to the industry average of 20.47X [10]. - The most recent consensus estimates for EPS in the current year and next year are 9.41 and 11.86, respectively, indicating a year-over-year growth estimate of 8.54% for the current year and 25.99% for the next year [9].

Core Viewpoint - Nuclear energy stocks have shown strong performance in 2025, with Constellation Energy up 44% and NuScale Power up 95% as of August 18, driven by favorable sentiments from AI hyperscalers and the Trump administration [1] Group 1: Constellation Energy - Constellation Energy reported Q2 results that exceeded Wall Street expectations, with revenue $1.2 billion higher than anticipated and adjusted earnings per share beating estimates by 9 cents [2] - Despite strong earnings, the market reaction was muted, with shares down approximately 5% since the report, likely due to unchanged guidance [3] - Analysts have raised price targets for Constellation, with the average target now around $375, suggesting a potential upside of nearly 17% [5] Group 2: NuScale Power - NuScale Power's Q2 earnings were disappointing, with revenue just over $8 million, falling short by $2.4 million, and a larger-than-expected loss [6] - Following the earnings report, shares dropped 12% and have declined over 20% overall, although the lack of revenue guidance complicates performance predictions [7] - Despite the earnings miss, analysts from UBS and Canaccord Genuity raised their price targets, indicating a neutral outlook for the company [8] Group 3: Other Nuclear Companies - Nano Nuclear Energy has not reported revenue yet, but its Q2 loss per share was better than expected, leading to a 2% rise in shares on August 15 [10] - However, shares fell nearly 11% after a downgrade from Ladenburg Thalmann, which lowered its price target significantly [10] - Oklo emerged as a clear winner in Q2, with shares rising 9% after being selected for three reactor pilot programs by the U.S. Department of Energy, leading to multiple analyst upgrades [12]

Core Viewpoint - The nuclear energy sector is gaining attention amid the AI revolution, with significant backing from the U.S. government, tech giants, and Wall Street, presenting investment opportunities in both established companies like Constellation Energy (CEG) and speculative newcomers like Oklo Inc. (OKLO) [1][2] Group 1: Company Profiles - Constellation Energy is the largest U.S. nuclear power plant operator, characterized as a mature and dominant force in the industry [2] - Oklo is a next-generation fission company focused on developing micro nuclear reactors and is currently a pre-revenue firm [3][4] Group 2: Business Models - Oklo plans to sell power directly to customers through long-term contracts, aiming to create recurring revenue streams [3] - Constellation has secured long-term power purchase agreements with major companies like Microsoft and Meta, ensuring revenue stability [6] Group 3: Financial Health - Oklo has raised over $400 million to fund its plans, projecting $5 billion in annual revenues by 2028 from a 14 GW order pipeline [4] - Constellation's free cash flow is approximately $2 billion negative due to capital expenditures and acquisitions, but it has a strong dividend growth outlook [8] Group 4: Market Performance - Oklo's stock has surged over 822% in the past year, reflecting speculative interest, while CEG has seen a more modest gain of 61% [9] Group 5: Valuation Metrics - Oklo trades at a high price-to-book (P/B) ratio of 13.11, indicating heavy investor optimism despite being pre-revenue [10] - Constellation trades at a more reasonable P/B ratio of 7.2, reflecting its established business model and earnings track record [10] Group 6: Earnings Outlook - Oklo is projected to have a loss of 50 cents per share in 2025, with further declines expected in 2026 [11] - Constellation is expected to see a 9% year-over-year gain in EPS for 2025, with estimates of $9.41 and $11.86 for 2025 and 2026, respectively [14] Conclusion - Constellation Energy is viewed as a more prudent investment due to its stable business, strong earnings profile, and strategic partnerships, while Oklo presents a high-risk, high-reward opportunity [15]