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Reasons to Add Constellation Energy (CEG) to Your Portfolio Now
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Constellation Energy Corp. (CEG - Free Report) , a supplier of power and energy products in the United States and operator of the nation’s largest nuclear fleet, is benefiting from organic and inorganic growth. It focuses on providing safe, reliable and responsible energy and making consistent investments in infrastructure.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for CEG’s 2023 earnings per share (EPS) is pegged at $4.11. This indicates a year-over-year bottom-line increase of 938.8%.
The company’s long-term (three to five years) earnings growth is pegged at 30.5%.
Debt Position
Constellation Energy’s total debt to capital was 34.2% as of Mar 31, 2023, which is better than the industry’s average of 50.1%.
The current ratio of CEG was 1.36 as of Mar 31, 2023, compared with the industry’s 0.92. This implies that the company is able to meet its short-term debt with its current assets.
Dividend History
Constellation Energy is rewarding shareholders through dividend increases. In February 2023, the board of directors approved a 100% increase in the quarterly dividend, taking the figure to 28 cents.
CEG currently pays investors $1.13 per share, or 1.24%, on an annual basis.
Systematic Investments & Emission Reduction
Constellation Energy is the largest producer of carbon-free energy in the United States. The company plans to make investments in three segments. For commercial hydrogen production, it has an expected capital expenditure of $900 million during 2023-25. In the nuclear segment, an investment of $800 million during 2023-2029 will be needed for replacements and upgrades. For wind repower and refurbishment, $350 million investment is expected from 2023-2025.
Price Performance
In the past year, shares of CEG have rallied 52.6% against the broader industry’s 9.4% decline.
The Zacks Consensus Estimate for GEVO’s 2023 EPS implies a year-over-year improvement of 27.3%. The Zacks Consensus Estimate for 2023 sales is pegged at $15.46 million, implying a top-line improvement of 1,216% from the 2022 figure.
EVRG’s long-term earnings growth rate is 5.2%. It delivered a trailing four-quarter average earnings surprise of 16%.
The Zacks Consensus Estimate for NRGV’s 2023 EPS implies a year-over-year improvement of 3.1%. The Zacks Consensus Estimate for 2023 sales is pegged at $376.35 million, implying a top-line improvement of 158% from the 2022 figure.
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Reasons to Add Constellation Energy (CEG) to Your Portfolio Now
Constellation Energy Corp. (CEG - Free Report) , a supplier of power and energy products in the United States and operator of the nation’s largest nuclear fleet, is benefiting from organic and inorganic growth. It focuses on providing safe, reliable and responsible energy and making consistent investments in infrastructure.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for CEG’s 2023 earnings per share (EPS) is pegged at $4.11. This indicates a year-over-year bottom-line increase of 938.8%.
The company’s long-term (three to five years) earnings growth is pegged at 30.5%.
Debt Position
Constellation Energy’s total debt to capital was 34.2% as of Mar 31, 2023, which is better than the industry’s average of 50.1%.
The current ratio of CEG was 1.36 as of Mar 31, 2023, compared with the industry’s 0.92. This implies that the company is able to meet its short-term debt with its current assets.
Dividend History
Constellation Energy is rewarding shareholders through dividend increases. In February 2023, the board of directors approved a 100% increase in the quarterly dividend, taking the figure to 28 cents.
CEG currently pays investors $1.13 per share, or 1.24%, on an annual basis.
Systematic Investments & Emission Reduction
Constellation Energy is the largest producer of carbon-free energy in the United States. The company plans to make investments in three segments. For commercial hydrogen production, it has an expected capital expenditure of $900 million during 2023-25. In the nuclear segment, an investment of $800 million during 2023-2029 will be needed for replacements and upgrades. For wind repower and refurbishment, $350 million investment is expected from 2023-2025.
Price Performance
In the past year, shares of CEG have rallied 52.6% against the broader industry’s 9.4% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Gevo Inc. (GEVO - Free Report) , Evergy Inc. (EVRG - Free Report) and Energy Vault Holdings Inc. (NRGV - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for GEVO’s 2023 EPS implies a year-over-year improvement of 27.3%. The Zacks Consensus Estimate for 2023 sales is pegged at $15.46 million, implying a top-line improvement of 1,216% from the 2022 figure.
EVRG’s long-term earnings growth rate is 5.2%. It delivered a trailing four-quarter average earnings surprise of 16%.
The Zacks Consensus Estimate for NRGV’s 2023 EPS implies a year-over-year improvement of 3.1%. The Zacks Consensus Estimate for 2023 sales is pegged at $376.35 million, implying a top-line improvement of 158% from the 2022 figure.