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CEG vs. DUK: Which Nuclear-Powered Utility Is Worth Your Investment?
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Key Takeaways
CEG's 2025 and 2026 EPS estimates rose 0.75% and 3.78% in 60 days, while DUK's were flat or slightly down.
Constellation Energy posts a 21.93% ROE versus Duke Energy's 9.88%, signaling more efficient capital use.
CEG plans $3B-$3.5B in capex through 2026, with 35% targeting nuclear fuel to meet rising energy demand.
Nuclear power plants are known for their high-capacity factor, meaning they can operate at or near their maximum output for a long time. Nuclear energy offers a significant advantage over some intermittent renewable energy sources, making it a reliable source of baseload electricity.
Production tax credits are advantageous for nuclear energy because they help offset the high upfront costs of constructing nuclear power plants, increasing their competitiveness relative to alternative energy sources. While the initial investment is substantial, nuclear plants operate with low fuel costs and minimal greenhouse gas emissions, making them a reliable, low-carbon energy source.
President Trump issued four executive orders in May 2025 to bolster the supply chain and install new nuclear reactors. By 2050, these directives aim to raise the nuclear energy capacity in the United States from 100 gigawatts (GW) to 400 GW.
The need for clean electricity is rising sharply due to a number of factors, including the development of enormous artificial intelligence-powered data centers, urbanization, industrial growth, rising global temperatures that increase the need for air conditioners, and the growing popularity of electric vehicles.
With this increasing importance, nuclear energy-focused stocks like Constellation Energy Corporation (CEG - Free Report) and Duke Energy (DUK - Free Report) are becoming attractive investment options.
Constellation Energy’s Argument
Constellation Energy is heavily invested in nuclear energy, which forms the core of its carbon-free electricity generation. The company operates the nation's largest nuclear fleet, producing nearly 90% carbon-free energy annually. CEG focuses on expanding its nuclear operations, mainly by relicensing existing facilities, establishing long-term power purchase agreements and investigating options for the building of additional reactors. The company is specifically looking at installing additional reactors at current sites, obtaining new electricity consumers like Meta, and prolonging the working life of existing plants.
Constellation Energy’s fleet of over 20 reactors in the Midwest, Mid-Atlantic, and Northeast contributes significantly to the reliable, carbon-free electricity supply. The company can meet the growing demand from power-intensive industries like data centers, thanks to its strong nuclear infrastructure.
Duke Energy’s Argument
Duke Energy benefits from its nuclear operations, primarily through the reliable, low-carbon electricity it provides. This helps the company meet its climate goals and federal regulations while also generating revenues. In March 2025, Duke Energy’s largest nuclear plant received approval to extend operations for an additional 20 years. The approval of its subsequent, or second, renewed licenses enable Oconee, located in Seneca, S.C., to operate through 2053 and 2054. This supports the company’s “all of the above” strategy to deliver a path to cleaner energy while protecting reliability and affordability for customers as regional electricity demand continues to grow.
Nuclear energy has safely and reliably provided electricity to Duke Energy’s Carolinas customers for more than 50 years. In 2024, its six plants helped meet more than 50% of Carolinas' customer electricity demand and over 96% of the company’s clean energy needs.
Let's compare the two stocks' fundamentals to find out which one is a better investment pick at present.
How Do Zacks Estimates Compare for CEG & DUK?
The Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 earnings per share (EPS) has increased 0.75% and 3.78%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s EPS has remained unchanged for 2025 and decreased 0.15% for 2026 in the past 60 days.
Image Source: Zacks Investment Research
CEG & DUK’s Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Constellation Energy’s current ROE is 21.93% compared with Duke Energy’s 9.88%.
CEG & DUK’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.
Duke Energy anticipates spending capital worth $190-$200 billion over the next decade, a major portion of which will go to clean energy transition. Of this, it expects to spend $83 billion during the 2025-2029 period. 45% of the five-year planned investment amount will fund the company's generation fleet transition and grid modernization, 27% will be used for zero-carbon generation and 12% will be employed for hydrogen-enabled natural gas technologies.
CEG & DUK’s Dividend Yield
Utility companies generally distribute dividends and increase shareholders’ value. Currently, the dividend yield for Constellation Energy is 0.49% compared with the Zacks S&P 500 Composite’s average of 1.22%, and the same for Duke Energy is 3.61%.
CEG or DUK: Which Is a Better Choice Now?
Constellation Energy's substantial nuclear capacity, efficient operations, and consistent production enable it to fulfill the increasing demand from data centers. Duke Energy mostly gains from its nuclear operations in the form of reliable, low-carbon electricity that supports its climate goals.
Both stocks have a lot of potential in the energy sector and can provide investors with significant growth opportunities.
Image: Bigstock
CEG vs. DUK: Which Nuclear-Powered Utility Is Worth Your Investment?
Key Takeaways
Nuclear power plants are known for their high-capacity factor, meaning they can operate at or near their maximum output for a long time. Nuclear energy offers a significant advantage over some intermittent renewable energy sources, making it a reliable source of baseload electricity.
Production tax credits are advantageous for nuclear energy because they help offset the high upfront costs of constructing nuclear power plants, increasing their competitiveness relative to alternative energy sources. While the initial investment is substantial, nuclear plants operate with low fuel costs and minimal greenhouse gas emissions, making them a reliable, low-carbon energy source.
President Trump issued four executive orders in May 2025 to bolster the supply chain and install new nuclear reactors. By 2050, these directives aim to raise the nuclear energy capacity in the United States from 100 gigawatts (GW) to 400 GW.
The need for clean electricity is rising sharply due to a number of factors, including the development of enormous artificial intelligence-powered data centers, urbanization, industrial growth, rising global temperatures that increase the need for air conditioners, and the growing popularity of electric vehicles.
With this increasing importance, nuclear energy-focused stocks like Constellation Energy Corporation (CEG - Free Report) and Duke Energy (DUK - Free Report) are becoming attractive investment options.
Constellation Energy’s Argument
Constellation Energy is heavily invested in nuclear energy, which forms the core of its carbon-free electricity generation. The company operates the nation's largest nuclear fleet, producing nearly 90% carbon-free energy annually. CEG focuses on expanding its nuclear operations, mainly by relicensing existing facilities, establishing long-term power purchase agreements and investigating options for the building of additional reactors. The company is specifically looking at installing additional reactors at current sites, obtaining new electricity consumers like Meta, and prolonging the working life of existing plants.
Constellation Energy’s fleet of over 20 reactors in the Midwest, Mid-Atlantic, and Northeast contributes significantly to the reliable, carbon-free electricity supply. The company can meet the growing demand from power-intensive industries like data centers, thanks to its strong nuclear infrastructure.
Duke Energy’s Argument
Duke Energy benefits from its nuclear operations, primarily through the reliable, low-carbon electricity it provides. This helps the company meet its climate goals and federal regulations while also generating revenues. In March 2025, Duke Energy’s largest nuclear plant received approval to extend operations for an additional 20 years. The approval of its subsequent, or second, renewed licenses enable Oconee, located in Seneca, S.C., to operate through 2053 and 2054. This supports the company’s “all of the above” strategy to deliver a path to cleaner energy while protecting reliability and affordability for customers as regional electricity demand continues to grow.
Nuclear energy has safely and reliably provided electricity to Duke Energy’s Carolinas customers for more than 50 years. In 2024, its six plants helped meet more than 50% of Carolinas' customer electricity demand and over 96% of the company’s clean energy needs.
Let's compare the two stocks' fundamentals to find out which one is a better investment pick at present.
How Do Zacks Estimates Compare for CEG & DUK?
The Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 earnings per share (EPS) has increased 0.75% and 3.78%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s EPS has remained unchanged for 2025 and decreased 0.15% for 2026 in the past 60 days.
Image Source: Zacks Investment Research
CEG & DUK’s Return on Equity (ROE)
ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. Constellation Energy’s current ROE is 21.93% compared with Duke Energy’s 9.88%.
CEG & DUK’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.
Duke Energy anticipates spending capital worth $190-$200 billion over the next decade, a major portion of which will go to clean energy transition. Of this, it expects to spend $83 billion during the 2025-2029 period. 45% of the five-year planned investment amount will fund the company's generation fleet transition and grid modernization, 27% will be used for zero-carbon generation and 12% will be employed for hydrogen-enabled natural gas technologies.
CEG & DUK’s Dividend Yield
Utility companies generally distribute dividends and increase shareholders’ value. Currently, the dividend yield for Constellation Energy is 0.49% compared with the Zacks S&P 500 Composite’s average of 1.22%, and the same for Duke Energy is 3.61%.
CEG or DUK: Which Is a Better Choice Now?
Constellation Energy's substantial nuclear capacity, efficient operations, and consistent production enable it to fulfill the increasing demand from data centers. Duke Energy mostly gains from its nuclear operations in the form of reliable, low-carbon electricity that supports its climate goals.
Both stocks have a lot of potential in the energy sector and can provide investors with significant growth opportunities.
However, our choice at the moment is Constellation Energy, given its better earnings growth and ROE. Both CEG and DUK stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.