We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CEG Outperforms Its Industry in 6 Months: How to Play the Stock?
Read MoreHide Full Article
Key Takeaways
Constellation Energy has rallied 79.2% in six months, outperforming its industry and key benchmarks.
CEG's clean energy push is fueled by nuclear investments, PPAs with Meta and Microsoft, and portfolio growth.
Dividend hikes, $3B buybacks and rising earnings estimates highlight CEG's strong shareholder value focus.
Shares of Constellation Energy Corporation ((CEG - Free Report) ) have rallied 79.2% in the past six months compared with the Zacks Alternative Energy – Other industry’s growth of 48%. CEG continues to add clean energy to the grid through its efficient operation of nuclear plants and by extending the lives of existing plants through new licenses.
CEG’s shares have also outperformed the Zacks S&P 500 Composite and the Zacks Oil-Energy sector in the past six months.
Price Performance (Six months)
Image Source: Zacks Investment Research
GE Vernova Inc. ((GEV - Free Report) ), another company operating in the same industry, has gained 80.7% in the past six months. The company is focused on developing and deploying nuclear technologies, including small modular reactors like the BWRX-300, which is becoming popular and poised for rapid growth.
Constellation Energy is currently trading above its 50 and 200-day simple moving averages (SMAs), signaling a bullish trend.
Both 50 and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of stocks.
CEG 50 & 200 Day SMAs
Image Source: Zacks Investment Research
Should investors add CEG to their portfolio solely based on its recent price gains? Let us take a closer look at the key factors that can help determine whether now is the right time to consider CEG stock as a potential addition to your portfolio.
Constellation Energy is capitalizing on the growing demand for clean energy through its diverse portfolio, led by the extensive nuclear fleet. With a strong focus on zero-carbon power generation, the company’s nuclear assets underscore its leadership in reliability and sustainability, achieving an impressive 94.8% capacity factor in second-quarter 2025.
Constellation Energy’s earnings growth is supported by its strategic investments and commitment to expanding the renewable portfolio. The company plans to invest about $3 billion in 2025 and $3.5 billion in 2026, with roughly 35% allocated to nuclear fuel acquisition to ensure reliable, clean power generation.
The company is strengthening its nuclear operations. CEG is broadening renewable assets, enhancing portfolio diversity and positioning itself for sustained growth in a cleaner, more sustainable energy market.
Constellation Energy reinforces its role as a trusted energy partner by combining zero-carbon power with energy efficiency solutions that boost customer loyalty. The company offers behind-the-meter technologies and efficiency upgrades designed to help customers optimize energy use and achieve greater sustainability.
Constellation Energy’s emphasis on Power Purchase Agreements (“PPA”) aligns with its mission to deliver carbon-free energy. The company is expanding its PPA portfolio with major corporations, including 20-year nuclear energy agreements with Meta for the Clinton Clean Energy Center in Illinois and with Microsoft for the restart of the Crane Clean Energy Center, formerly Three Mile Island Unit 1.
Constellation Energy’s Earnings Surprise History
Constellation Energy’s earnings are consistent, visible and easy to calculate. It is expected to increase over time through returns on organic growth, PTC inflation and share repurchases. The company has reported positive earnings surprises in the last four reported quarters.
Image Source: Zacks Investment Research
Another firm, Duke Energy Corporation ((DUK - Free Report) ), also produces a large volume of clean energy from its nuclear units. Duke Energy’s earnings surpassed estimates in three of the last four quarters and missed in one, resulting in an average surprise of 3.12%.
CEG Stock’s Earnings Estimates
The Zacks Consensus Estimate for CEG’s 2025 and 2026 earnings per share has increased year over year by 8.07% and 25.77%, respectively. Long-term (three to five years) earnings growth of the company is pegged at 16.2%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s 2025 and 2026 earnings per share has increased 7.29% and 6.07%, respectively.
CEG Increasing Value of Shareholders
Constellation Energy continues to make share repurchases. It has repurchased shares to raise shareholders’ value. Constellation Energy increased its dividend by 150% in the first two years. It targets dividend growth of 10% annually in future years. Constellation Energy’s quarterly dividend is 38.78 cents per share at present, resulting in an annualized dividend of $1.55.
Since 2023, CEG’s board of directors has authorized the repurchase of up to $3 billion of its outstanding common stock. As of June 30, 2025, there was approximately $540 million of remaining authority to repurchase shares of the company's outstanding common stock. Check CEG’s dividend history here.
CEG Stock Returns Better Than Industry
Constellation Energy’s trailing 12-month return on equity of 21.61% is better than the industry average of 8.01%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
GE Vernova’s trailing 12-month return on equity is 13.23% which is also better than its industry.
CEG Stock Trades at a Premium
Constellation Energy is currently trading at a premium compared with its industry on a forward 12-month P/E basis.
Image Source: Zacks Investment Research
Summing Up
Constellation Energy is strategically positioned to benefit from the surging demand for clean energy across its service regions. The new PPAs signed by the company will also act as tailwinds. Backed by strong generation capacity, the company is well-prepared to meet this increasing energy need efficiently and reliably.
The existing shareholders stand to benefit from ongoing dividends, share repurchase programs and increasing earnings projections, all of which contribute to the company’s strong financial outlook.
Constellation Energy is currently trading at a premium, so the new investors should wait a little longer before adding this Zacks Rank #3 (Hold) stock to their portfolio.
Image: Bigstock
CEG Outperforms Its Industry in 6 Months: How to Play the Stock?
Key Takeaways
Shares of Constellation Energy Corporation ((CEG - Free Report) ) have rallied 79.2% in the past six months compared with the Zacks Alternative Energy – Other industry’s growth of 48%. CEG continues to add clean energy to the grid through its efficient operation of nuclear plants and by extending the lives of existing plants through new licenses.
CEG’s shares have also outperformed the Zacks S&P 500 Composite and the Zacks Oil-Energy sector in the past six months.
Price Performance (Six months)
Image Source: Zacks Investment Research
GE Vernova Inc. ((GEV - Free Report) ), another company operating in the same industry, has gained 80.7% in the past six months. The company is focused on developing and deploying nuclear technologies, including small modular reactors like the BWRX-300, which is becoming popular and poised for rapid growth.
Constellation Energy is currently trading above its 50 and 200-day simple moving averages (SMAs), signaling a bullish trend.
Both 50 and 200-day SMAs are key indicators for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of stocks.
CEG 50 & 200 Day SMAs
Image Source: Zacks Investment Research
Should investors add CEG to their portfolio solely based on its recent price gains? Let us take a closer look at the key factors that can help determine whether now is the right time to consider CEG stock as a potential addition to your portfolio.
Drivers Behind Constellation Energy’s Steady Performance
Constellation Energy is capitalizing on the growing demand for clean energy through its diverse portfolio, led by the extensive nuclear fleet. With a strong focus on zero-carbon power generation, the company’s nuclear assets underscore its leadership in reliability and sustainability, achieving an impressive 94.8% capacity factor in second-quarter 2025.
Constellation Energy’s earnings growth is supported by its strategic investments and commitment to expanding the renewable portfolio. The company plans to invest about $3 billion in 2025 and $3.5 billion in 2026, with roughly 35% allocated to nuclear fuel acquisition to ensure reliable, clean power generation.
The company is strengthening its nuclear operations. CEG is broadening renewable assets, enhancing portfolio diversity and positioning itself for sustained growth in a cleaner, more sustainable energy market.
Constellation Energy reinforces its role as a trusted energy partner by combining zero-carbon power with energy efficiency solutions that boost customer loyalty. The company offers behind-the-meter technologies and efficiency upgrades designed to help customers optimize energy use and achieve greater sustainability.
Constellation Energy’s emphasis on Power Purchase Agreements (“PPA”) aligns with its mission to deliver carbon-free energy. The company is expanding its PPA portfolio with major corporations, including 20-year nuclear energy agreements with Meta for the Clinton Clean Energy Center in Illinois and with Microsoft for the restart of the Crane Clean Energy Center, formerly Three Mile Island Unit 1.
Constellation Energy’s Earnings Surprise History
Constellation Energy’s earnings are consistent, visible and easy to calculate. It is expected to increase over time through returns on organic growth, PTC inflation and share repurchases. The company has reported positive earnings surprises in the last four reported quarters.
Image Source: Zacks Investment Research
Another firm, Duke Energy Corporation ((DUK - Free Report) ), also produces a large volume of clean energy from its nuclear units. Duke Energy’s earnings surpassed estimates in three of the last four quarters and missed in one, resulting in an average surprise of 3.12%.
CEG Stock’s Earnings Estimates
The Zacks Consensus Estimate for CEG’s 2025 and 2026 earnings per share has increased year over year by 8.07% and 25.77%, respectively. Long-term (three to five years) earnings growth of the company is pegged at 16.2%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s 2025 and 2026 earnings per share has increased 7.29% and 6.07%, respectively.
CEG Increasing Value of Shareholders
Constellation Energy continues to make share repurchases. It has repurchased shares to raise shareholders’ value. Constellation Energy increased its dividend by 150% in the first two years. It targets dividend growth of 10% annually in future years. Constellation Energy’s quarterly dividend is 38.78 cents per share at present, resulting in an annualized dividend of $1.55.
Since 2023, CEG’s board of directors has authorized the repurchase of up to $3 billion of its outstanding common stock. As of June 30, 2025, there was approximately $540 million of remaining authority to repurchase shares of the company's outstanding common stock. Check CEG’s dividend history here.
CEG Stock Returns Better Than Industry
Constellation Energy’s trailing 12-month return on equity of 21.61% is better than the industry average of 8.01%. Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Image Source: Zacks Investment Research
GE Vernova’s trailing 12-month return on equity is 13.23% which is also better than its industry.
CEG Stock Trades at a Premium
Constellation Energy is currently trading at a premium compared with its industry on a forward 12-month P/E basis.
Image Source: Zacks Investment Research
Summing Up
Constellation Energy is strategically positioned to benefit from the surging demand for clean energy across its service regions. The new PPAs signed by the company will also act as tailwinds. Backed by strong generation capacity, the company is well-prepared to meet this increasing energy need efficiently and reliably.
The existing shareholders stand to benefit from ongoing dividends, share repurchase programs and increasing earnings projections, all of which contribute to the company’s strong financial outlook.
Constellation Energy is currently trading at a premium, so the new investors should wait a little longer before adding this Zacks Rank #3 (Hold) stock to their portfolio.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.