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CEG vs. D: Which Utility Stock Is Charging Up for Stronger Gains?
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Development of massive artificial intelligence-powered data centers, urbanization, industrial growth and rising global temperatures that increase the need for air conditioners, and the growing popularity of electric vehicles are all contributing to the sharp rise in demand for clean electricity. Compared to other clean energy sources, nuclear power plants require significantly less land to generate the same amount of electricity. While all conventional energy sources produce waste during electricity generation, nuclear energy stands out as the only one that systematically manages and safely stores its waste.
With its high-capacity factor and zero emissions, nuclear energy offers a unique solution as nations look for dependable and consistent power sources amid rising clean energy demands.
Nuclear energy is emerging as a key solution to the world's growing electricity demand and the transition to cleaner power sources. Unlike solar and wind, which rely on weather conditions, nuclear plants provide a constant, round-the-clock energy supply, ensuring uninterrupted power generation.
With this increasing importance, nuclear energy-related stocks like Constellation Energy Corporation (CEG - Free Report) and Dominion Energy (D - Free Report) are becoming attractive investment options.
Constellation Energy is the largest nuclear power plant operator in the United States, accounting for around 10% of the nation’s total clean energy production. It is also an industry leader in operating nuclear plants safely, efficiently and reliably. CEG’s nuclear fleet capacity factor was an impressive 94.1% in the first quarter compared with 93.3% in the year-ago quarter. This indicates continued strong production in the current year. Constellation Energy can fulfill the growing demand from power-intensive industries like data centers, thanks to its strong nuclear infrastructure. Few rivals can match Constellation Energy's operational size as the leading operator of merchant nuclear reactors.
Dominion Energy is not only committed to operating its existing nuclear facilities but is also actively evaluating the potential of next-generation nuclear technologies. In 2024, the company signed a Memorandum of Understanding with Amazon to explore innovative new development structures for enhancing potential Small Modular Reactor (“SMR”) nuclear development in Virginia. SMRs potentially offer significant advantages, including passive safety features, scalability, a factory-fabrication model, and the ability to ramp up and down more quickly than traditional reactors, enabling a nimbler response to changes in customer demand.
Let's examine and contrast the two stocks' fundamentals to find out which one is a better investment pick at present.
CEG & D’s Earnings Estimates
The Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 earnings per share has increased 0.75% and 4.54%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dominion’s earnings per share has remained unchanged for 2025 and decreased 0.56% for 2026 in the past 60 days.
Image Source: Zacks Investment Research
CEG & D’s Long-term Strategic Investment Plans
Constellation Energy’s strategic investment plans and focus on expanding its renewable portfolio drive its earnings performance. The company expects capital expenditures of nearly $3 billion and $3.5 billion for 2025 and 2026, respectively. Nearly 35% of projected capital expenditures are for the acquisition of nuclear fuel, which includes additional nuclear fuel to increase inventory levels.
Dominion plans to invest $10.8 billion in 2025 and $50 billion in the 2025-2029 period to further strengthen its renewable operations.
CEG & D’s Return on Equity (ROE)
ROE measures how efficiently the company is utilizing its shareholders’ funds to generate profits. Constellation Energy’s current ROE is 21.93% compared with Dominion’s 9.51%.
CEG & D’s Dividend Yield
Utility companies generally distribute dividends and increase shareholders’ value. Currently, the dividend yield for Constellation Energy is 0.52% compared with the Zacks S&P 500 Composite’s average of 1.27%, and the same for Dominion is 4.74%.
Which Stock Has the Edge: CEG or D?
Constellation Energy is able to meet the growing demand from data centers, thanks to its significant nuclear capacity, effective operations and steady production. Dominion also relies heavily on nuclear power, with it contributing a substantial portion to the company’s electricity generation.
Both CEG and D are significant energy suppliers who have made significant investments in nuclear power generation, making them important participants in the shift to sustainable energy. In the energy sector, both stocks have enormous potential and can present investors with substantial growth prospects.
However, considering the aforementioned factors, Constellation Energy is currently our choice with a Zacks Rank #2 (Buy), while Dominion carries a Zacks Rank #3 (Hold).
Image: Bigstock
CEG vs. D: Which Utility Stock Is Charging Up for Stronger Gains?
Development of massive artificial intelligence-powered data centers, urbanization, industrial growth and rising global temperatures that increase the need for air conditioners, and the growing popularity of electric vehicles are all contributing to the sharp rise in demand for clean electricity. Compared to other clean energy sources, nuclear power plants require significantly less land to generate the same amount of electricity. While all conventional energy sources produce waste during electricity generation, nuclear energy stands out as the only one that systematically manages and safely stores its waste.
With its high-capacity factor and zero emissions, nuclear energy offers a unique solution as nations look for dependable and consistent power sources amid rising clean energy demands.
Nuclear energy is emerging as a key solution to the world's growing electricity demand and the transition to cleaner power sources. Unlike solar and wind, which rely on weather conditions, nuclear plants provide a constant, round-the-clock energy supply, ensuring uninterrupted power generation.
With this increasing importance, nuclear energy-related stocks like Constellation Energy Corporation (CEG - Free Report) and Dominion Energy (D - Free Report) are becoming attractive investment options.
Constellation Energy is the largest nuclear power plant operator in the United States, accounting for around 10% of the nation’s total clean energy production. It is also an industry leader in operating nuclear plants safely, efficiently and reliably. CEG’s nuclear fleet capacity factor was an impressive 94.1% in the first quarter compared with 93.3% in the year-ago quarter. This indicates continued strong production in the current year. Constellation Energy can fulfill the growing demand from power-intensive industries like data centers, thanks to its strong nuclear infrastructure. Few rivals can match Constellation Energy's operational size as the leading operator of merchant nuclear reactors.
Dominion Energy is not only committed to operating its existing nuclear facilities but is also actively evaluating the potential of next-generation nuclear technologies. In 2024, the company signed a Memorandum of Understanding with Amazon to explore innovative new development structures for enhancing potential Small Modular Reactor (“SMR”) nuclear development in Virginia. SMRs potentially offer significant advantages, including passive safety features, scalability, a factory-fabrication model, and the ability to ramp up and down more quickly than traditional reactors, enabling a nimbler response to changes in customer demand.
Let's examine and contrast the two stocks' fundamentals to find out which one is a better investment pick at present.
CEG & D’s Earnings Estimates
The Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 earnings per share has increased 0.75% and 4.54%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Dominion’s earnings per share has remained unchanged for 2025 and decreased 0.56% for 2026 in the past 60 days.
Image Source: Zacks Investment Research
CEG & D’s Long-term Strategic Investment Plans
Constellation Energy’s strategic investment plans and focus on expanding its renewable portfolio drive its earnings performance. The company expects capital expenditures of nearly $3 billion and $3.5 billion for 2025 and 2026, respectively. Nearly 35% of projected capital expenditures are for the acquisition of nuclear fuel, which includes additional nuclear fuel to increase inventory levels.
Dominion plans to invest $10.8 billion in 2025 and $50 billion in the 2025-2029 period to further strengthen its renewable operations.
CEG & D’s Return on Equity (ROE)
ROE measures how efficiently the company is utilizing its shareholders’ funds to generate profits. Constellation Energy’s current ROE is 21.93% compared with Dominion’s 9.51%.
CEG & D’s Dividend Yield
Utility companies generally distribute dividends and increase shareholders’ value. Currently, the dividend yield for Constellation Energy is 0.52% compared with the Zacks S&P 500 Composite’s average of 1.27%, and the same for Dominion is 4.74%.
Which Stock Has the Edge: CEG or D?
Constellation Energy is able to meet the growing demand from data centers, thanks to its significant nuclear capacity, effective operations and steady production. Dominion also relies heavily on nuclear power, with it contributing a substantial portion to the company’s electricity generation.
Both CEG and D are significant energy suppliers who have made significant investments in nuclear power generation, making them important participants in the shift to sustainable energy. In the energy sector, both stocks have enormous potential and can present investors with substantial growth prospects.
However, considering the aforementioned factors, Constellation Energy is currently our choice with a Zacks Rank #2 (Buy), while Dominion carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.