Back to top

Image: Bigstock

Constellation Energy Corporation (CEG) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

Constellation Energy Corporation (CEG - Free Report) closed the most recent trading day at $216.10, moving -0.93% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.31%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq lost 1.09%.

Shares of the company have depreciated by 5.42% over the course of the past month, underperforming the Oils-Energy sector's loss of 4.31% and the S&P 500's gain of 2.73%.

Analysts and investors alike will be keeping a close eye on the performance of Constellation Energy Corporation in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.87, signifying a 26.95% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.3 billion, down 2.67% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.62 per share and a revenue of $23.77 billion, representing changes of +52.1% and -4.62%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Constellation Energy Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 2.08% higher. Constellation Energy Corporation is currently sporting a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Constellation Energy Corporation is currently exchanging hands at a Forward P/E ratio of 28.65. This denotes a premium relative to the industry's average Forward P/E of 25.55.

Investors should also note that CEG has a PEG ratio of 1.96 right now. 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. The Alternative Energy - Other industry had an average PEG ratio of 1.96 as trading concluded yesterday.

The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 87, putting it in the top 35% of all 250+ industries.

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

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming 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