Constellation Energy Corporation (CEG) Suffers a Larger Drop Than the General Market: Key Insights

Core Viewpoint - Constellation Energy Corporation (CEG) is experiencing fluctuations in stock performance, with a notable monthly gain, while upcoming earnings are anticipated to show growth in EPS but a decline in revenue [1][2]. Group 1: Stock Performance - CEG closed at $368.10, reflecting a decrease of -3.95% from the previous day, underperforming the S&P 500, which fell by 2.71% [1]. - Over the past month, CEG shares increased by 20.51%, outperforming the Oils-Energy sector's gain of 2.1% and the S&P 500's gain of 3.5% [1]. Group 2: Earnings Forecast - The upcoming earnings report on November 7, 2025, is expected to show an EPS of $3.06, representing an 11.68% growth compared to the same quarter last year [2]. - Revenue is forecasted to be $6.37 billion, indicating a 2.8% decline from the corresponding quarter of the previous year [2]. Group 3: Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $9.36 per share, with revenue expected to reach $24.53 billion, reflecting changes of +7.96% and +4.09% respectively from the prior year [3]. Group 4: Analyst Estimates and Rankings - Recent changes to analyst estimates for CEG are important as they reflect short-term business trends, with positive revisions indicating optimism about the business outlook [4]. - The Zacks Rank system currently rates CEG at 3 (Hold), with a recent 0.35% decline in the Zacks Consensus EPS estimate [6]. Group 5: Valuation Metrics - CEG is trading at a Forward P/E ratio of 40.95, which is a premium compared to the industry average Forward P/E of 20.55 [7]. - The company has a PEG ratio of 2.52, slightly above the industry average of 2.5, indicating a valuation that considers expected earnings growth [8]. Group 6: Industry Context - The Alternative Energy - Other industry, which includes CEG, has a Zacks Industry Rank of 157, placing it in the bottom 37% of over 250 industries [8].