Core Insights - November experienced a significant correction in the advanced nuclear energy sector, particularly affecting small modular reactor (SMR) and microreactor companies, which saw substantial stock price declines [1][3] - Industry leaders Oklo Inc., NuScale Power Corp., and Nano Nuclear Energy Inc. have lost over a third of their valuations within weeks, with NuScale Power declining approximately 55%, Oklo by about 39%, and Nano Nuclear Energy by around 37% [2][3] Market Dynamics - The sell-off followed a previous surge fueled by hype around the demand for carbon-free power from AI data centers, but the market began reassessing the risks associated with long-term nuclear investments [3] - The correction highlights the speculative nature of investing in nuclear stocks, despite supportive global energy policies and AI demand [3] Company-Specific Challenges - All three companies are in the pre-commercialization phase, resulting in minimal to no operating revenue, making them vulnerable to market sentiment shifts [4] - The commercial deployment of their technologies is still years away, leading to high cash burn rates and ongoing operating losses, which challenge investor patience [4] - The broader correction in tech and AI-related stocks in November, driven by valuation concerns, also impacted advanced nuclear infrastructure investments [4]

Core Insights - Constellation Energy Corporation (CEG) reported Q3 2025 earnings of $3.04 per share, missing the Zacks Consensus Estimate of $3.13 by 2.89% while revenues reached $6.57 billion, exceeding expectations by 7.3% [1][9] Financial Performance - Revenues of $6.57 billion increased by 0.3% from $6.55 billion in the same quarter last year [7] - CEG's net interest expenses decreased by 8.8% to $134 million from $147 million year-over-year [10] - The trailing 12-month return on equity for CEG is 21.59%, outperforming the industry average of 7.99% [23] Stock Performance - CEG stock closed at $335.74 on Nov. 13, reflecting a 5.16% decline in intraday trading following the mixed earnings report [2] - Over the past six months, CEG shares have gained 49.2%, outperforming the industry’s 38.9% rise and the S&P 500's 16.7% growth [2] Operational Highlights - Renewable energy capture for CEG's wind, solar, and hydro fleet was 96.8%, up from 96% in Q3 2024 [7] - The company produced 46,477 gigawatt-hours (GWhs) from its Salem and South Texas Project Generating Stations, an increase from 45,510 GWhs in Q3 2024 [8] Strategic Initiatives - CEG plans capital expenditures of approximately $3 billion for 2025 and $3.5 billion for 2026, with about 35% allocated for nuclear fuel purchases [16] - The company aims to achieve 95% carbon-free output by 2030 and 100% by 2040, with nearly 90% of its yearly power generation already carbon-free [18] Investment Outlook - The Zacks Consensus Estimate for CEG's 2025 and 2026 earnings per share reflects year-over-year growth of 8.77% and 21.09%, respectively [20] - CEG's board has authorized a share repurchase program of up to $3 billion, with approximately $593 million remaining as of Sept. 30, 2025 [25] - The company aims to increase its dividend by 10% annually, currently offering a quarterly dividend of 38.78 cents per share [26] Valuation - CEG is currently trading at a forward P/E ratio of 31.79X, which is a premium compared to the industry average of 23.94X [27]