Constellation Energy Corporation’s (CEG) shares have failed to keep pace with the Zacks Alternative Energy - Other industry’s rally in the past year. While the CEG stock has gained 13.7%, it has lagged the industry’s impressive 42.9% jump.GE Vernova Inc. (GEV) , operating in the same industry, has gained 118.8% in the past year. GE Vernova is focused on developing and deploying nuclear technologies, including small modular reactors like the BWRX-300, which is becoming popular and is poised for rapid growth. ...

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Clean energy solutions continue to be a global priority, while various sources and companies strive for power. Nuclear energy stands out as one of the most promising options for achieving large-scale, low-carbon power generation. Technological advancements have brought nuclear energy backI am an investment author with passion for finance and global markets. I enjoy gearing toward economic analysis, specifically on a macro level. Through current and forward looking market trends, fundamental and technical an ...

Group 1: Market Overview - The CBOE Market Volatility Index (VIX) reached its highest level in 2025 on March 4, coinciding with the implementation of tariffs by the Trump administration, indicating increased market fear [1] - Following Warren Buffett's investment philosophy, the current market conditions may present an attractive opportunity for value investors to consider buying stocks [1] Group 2: F5 Inc. (FFIV) - F5 Inc. is recognized for its cybersecurity solutions as well as distributed cloud services, networking, and application management [3] - The company reported strong quarterly earnings, exceeding expectations, with 72% of its recurring revenue derived from subscriptions, SaaS, managed services, and maintenance [3] - F5 raised its guidance for both the current quarter and the full year, with growth driven by its BIG-IP Next Cloud-native Network Functions (CNFs) that cater to on-device AI demands [4] - Despite a drop in stock price in February, FFIV stock has increased by 49% in 2025, and analysts are raising their price targets [5] Group 3: Constellation Energy (CEG) - Constellation Energy's stock surged following a partnership with Microsoft to restart the Three Mile Island nuclear power plant, reflecting investor enthusiasm for nuclear energy [7] - The company is positioned for long-term growth, with increasing electric demand anticipated for the rest of the decade, necessitating updates to the national electric grid [8] - Constellation's diversified energy portfolio includes natural gas, hydroelectric, nuclear, wind, and solar operations, providing a stable foundation for its stock [9] - Analysts maintain a Moderate Buy rating on CEG stock, with a consensus price target of $293.43, indicating a potential 27% upside from its March 5, 2025 closing price [9] Group 4: CrowdStrike (CRWD) - CrowdStrike is recovering from a significant incident in summer 2024, with its stock up 52% since hitting a 52-week low in August 2024 [11] - The company's recent earnings reports indicate strong demand for its products and services, despite a recent pullback in stock price [12] - Analysts have raised their price targets for CRWD stock following positive earnings results, although it is currently not among the top recommended stocks by leading analysts [13]

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Core Viewpoint - Constellation Energy Corporation (CEG) has experienced a significant decline of 26.9% in its stock price over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround due to improved earnings expectations from analysts [1]. Group 1: Stock Performance and Technical Indicators - CEG's Relative Strength Index (RSI) is currently at 23.74, indicating that the heavy selling pressure may be exhausting, which could lead to a price rebound [5]. - The RSI is a momentum oscillator that helps identify oversold conditions, typically when the reading falls below 30, signaling potential entry opportunities for investors [2][3]. Group 2: Earnings Estimates and Analyst Consensus - There is a strong consensus among sell-side analysts regarding an increase in CEG's earnings estimates, with a 0.8% rise in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [6]. - CEG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7].

Core Viewpoint - The emergence of DeepSeek in January 2025 has significantly impacted the AI and nuclear energy sectors, leading to substantial market capitalization losses for companies like Nvidia and Constellation Energy [1][2]. Company Analysis: Constellation Energy - Constellation Energy's stock experienced a 21% decline in market capitalization following the introduction of DeepSeek, and it is currently trading 29% below its previous share price [2]. - The company remains committed to nuclear energy, announcing a $100 million investment to upgrade its Calvert Cliffs nuclear power plant in Maryland, aiming to renew operating licenses and increase future power output [4][5]. - The planned upgrades include replacing critical components and installing $68 million worth of new electrical breakers to enhance power output by 10%, with each unit expected to produce approximately 950 megawatts of continuous nuclear power [5]. Market Position and Growth Potential - Constellation's existing licenses allow operation into the 2030s, with potential extensions enabling operation into the 2050s [6]. - Despite a trailing price-to-earnings ratio of 20.7, which appears attractive compared to the S&P 500 average of 29.8, analysts project a long-term annual growth rate of only 7.4% for Constellation, which is below the average expected growth of 9.5% for S&P stocks [7]. - The company is viewed as a bellwether for the AI-nuclear energy trend, but it faces competition from other utilities that may also benefit from this trend [8]. Competitive Landscape - Other nuclear operators such as Duke Energy, Dominion Energy, and Southern Co. have lower P/E ratios (20.4, 20.8, and 22.3 respectively) and offer better dividend yields compared to Constellation's 0.6% [9]. - Dominion Energy is highlighted as a preferable investment option, with a P/E ratio of about 21, a projected long-term earnings growth rate of 17.5%, and a superior dividend yield of 4.7% [10][11].

Core Viewpoint - Constellation Energy Corporation (CEG) shares are experiencing a downward trend, with a significant sell-off of over 8% on Friday, indicating a potential continuation of this decline [1]. Price Support and Market Dynamics - Support is defined as a price level where there is substantial buying interest, which can halt or reverse a downward trend when reached [2]. - When a stock is in a downtrend, it indicates that there are more shares available for sale than there are buyers, leading to price reductions [2]. - A stock may rally after reaching a support level due to increased buying interest from anxious buyers who fear missing out on potential price increases [3][4]. Break of Support - The support level at $280 for Constellation Energy has been breached, suggesting that the buyers who previously established this support have exited the market [5][9]. - If the support is broken, sellers may need to lower prices further to execute their orders, which could lead to a continued downward trend for Constellation Energy [6]. Historical Context of Support and Resistance - The $280 support level was previously a resistance level, illustrating the market behavior where former resistance can become support as remorseful sellers attempt to buy back shares at the price they sold [7][8].

Core Viewpoint - Constellation Energy Corporation (CEG) reported strong fourth-quarter earnings, driven by favorable nuclear portfolio results and strategic investments in renewable energy, surpassing market expectations consistently over the past year [1][2][20]. Financial Performance - CEG reported fourth-quarter 2024 earnings of $2.44 per share, exceeding the Zacks Consensus Estimate of $2.19 by 11.4% [1] - The company achieved a nuclear operating capacity factor of 94.8% in Q4 2024, ensuring a consistent supply of clean energy [9] - Total operating expenses decreased to $4.48 billion, down 23.6% from $5.86 billion in the previous year, with operating income at $972 million compared to an operating loss of $67 million in the year-ago quarter [10] Stock Performance - CEG stock closed at $284.44 on February 21, with a 113.5% increase over the past year, outperforming the industry average of 65.9% and the S&P 500's growth of 19.7% [4] - The company has consistently surpassed earnings expectations, with an average earnings surprise of 10.16% over the last four quarters [2][3] Strategic Investments - CEG plans to invest nearly $3 billion and $3.5 billion in capital expenditures for 2025 and 2026, respectively, with 35% allocated for nuclear fuel acquisition [13] - The company entered into a definitive agreement to acquire Calpine Corporation, enhancing its position as a leading competitive retail supplier of clean energy [11] Market Position - CEG's trailing 12-month return on equity stands at 21.96%, significantly higher than the industry average of 8.44%, indicating effective utilization of shareholders' funds [16] - The stock is currently trading at a premium compared to its industry on a forward 12-month P/E basis [18][22] Future Outlook - The company is poised to benefit from the growing demand for clean energy, particularly from AI-driven data centers, with a significant investment from major tech companies expected in the sector [15][20] - CEG has executed a 20-year Power Purchase Agreement (PPA) with Microsoft to support the restart of the Three Mile Island Unit 1, further solidifying its market position [15]

Market Overview - In 2023 and 2024, a small group of seven stocks, referred to as the Magnificent Seven, delivered gains of over 160% [1] - As of February 20, 2025, the NASDAQ index is up about 8%, while the Magnificent Seven stocks are only up 1%, indicating a potential shift in market dynamics [2] Factors Affecting Performance - Investors are concerned about stretched valuations, the impact of capital expenditures on AI on earnings, and the effects of higher interest rates on borrowing [3] Investment Opportunities - There is a potential rotation trade emerging, suggesting that investors may consider moving funds out of the Magnificent Seven into other growth stocks [4] F5 Inc. (FFIV) - F5 Inc. provides distributed cloud services and reported first-quarter 2025 revenue of $747 million, a 7% increase year-over-year [6] - The company raised its guidance for revenue growth to 5% for the second quarter and between 6% and 7% for the full year [6] - FFIV stock is up 20.2% in 2025 and 65.1% over the last 12 months, with analysts raising price targets significantly post-earnings [8] Tapestry Inc. (TPR) - Tapestry, known for brands like Coach and Kate Spade, reported a 5% year-over-year revenue increase and a record $2.00 earnings per share, a 23% increase [9] - The stock is up 32% in 2025 and 84% for the year, with analysts raising price targets above $100 [10] - The potential acquisition of Capri Holdings for $8.5 billion was blocked by the FTC, but this may benefit Tapestry's shareholders in the long run [11] Constellation Energy Corp. (CEG) - Constellation Energy has seen a 144% increase in stock price over the last 12 months, driven by a partnership with Microsoft to reopen the Three Mile Island nuclear plant [13] - The stock is currently trading above $300, which may indicate overextension, but there is underlying conviction as dips in stock price are being bought up [14][15] - Analysts are raising price targets for CEG, although it is not currently among the top recommendations from leading analysts [16]