Back to top

Image: Bigstock

Constellation Energy Corporation (CEG) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

Constellation Energy Corporation (CEG - Free Report) closed the most recent trading day at $81.85, moving -1.82% from the previous trading session. This change lagged the S&P 500's 1.56% loss on the day. Meanwhile, the Dow lost 1.81%, and the Nasdaq, a tech-heavy index, lost 4.66%.

Coming into today, shares of the company had lost 4.79% in the past month. In that same time, the Oils-Energy sector gained 6.91%, while the S&P 500 gained 3.82%.

Investors will be hoping for strength from Constellation Energy Corporation as it approaches its next earnings release.

Investors should also note any recent changes to analyst estimates for Constellation Energy Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% lower. Constellation Energy Corporation is currently a Zacks Rank #4 (Sell).

Investors should also note Constellation Energy Corporation's current valuation metrics, including its Forward P/E ratio of 17.21. Its industry sports an average Forward P/E of 24.96, so we one might conclude that Constellation Energy Corporation is trading at a discount comparatively.

Meanwhile, CEG's PEG ratio is currently 0.48. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 1.56 based on yesterday's closing prices.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Constellation Energy Corporation (CEG) - free report >>

Published in