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CEG Stock Falls Behind Industry in 6 Months: Buy, Hold or Sell?
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Key Takeaways
CEG's shares fell 26.5% in the past 6 months, lagging an industry rise of 5.1%.
Transmission delays may push back CEG's 835-MW Three Mile Island restart; data center deals are lacking.
CEG targets 95% carbon-free by 2030 and 100% by 2040; plans $5.7B capex in 2026.
Constellation Energy Corporation’s (CEG - Free Report) shares have declined 24.7% over the past six months against the Zacks Alternative Energy – Other industry’s rally of 5.7%. Expected postponement in the completion of transmission projects can create a delay in the restart of the 835 megawatt (“MW”) Three Mile Island plant and a lack of new data center contracts is adversely impacting Constellation Energy’s performance.
CEG is steadily expanding the supply of clean energy to the grid through the efficient operation of its nuclear fleet, while also benefiting from government support aimed at boosting large-scale clean energy generation.
Image Source: Zacks Investment Research
Another company, Duke Energy Corporation (DUK - Free Report) , is also actively pursuing nuclear energy expansion as part of its long-term clean energy strategy, particularly in the Carolinas. Duke Energy has gained 4.5% in the past six months, underperforming its industry.
Given the current underperformance in price, should you consider adding Constellation Energy to your portfolio? Let's examine the factors in detail and assess the investment prospects.
Primary Catalysts Behind CEG’s Performance
Constellation Energy is capitalizing on the rising demand for clean power by leveraging its diversified portfolio, particularly the nuclear fleet. This positions the company to effectively meet customer requirements, enhance revenues and contribute to the shift toward carbon-free energy. Constellation Energy’s strong focus on innovation and continued investments in sustainable energy technologies also enable it to navigate market dynamics more efficiently and capture emerging opportunities.
Close to 90% of Constellation Energy’s annual electricity generation is derived from carbon-free sources. The company aims to increase this share to 95% by 2030 and achieve 100% carbon-free generation by 2040. These initiatives are expected to streamline operations and potentially reduce costs through a greater reliance on advanced and efficient assets.
The acquisition of Calpine Corporation enhances the growth outlook of Constellation Energy by broadening its footprint in competitive power markets and adding efficient gas-fired generation assets. The transaction supports greater earnings diversification, strengthens cash flow stability and improves operational flexibility. This move also complements the company’s nuclear-focused clean energy platform, positioning it to capitalize on increasing electricity demand and the rising need for grid reliability.
Constellation Energy’s strategic investment plan and continued expansion of its clean energy portfolio are key drivers of the earnings growth. The company expects capital expenditures of about $5.7 billion in 2026 and $4.7 billion in 2027. Around 29% of this spending is allocated to nuclear fuel procurement, including inventory expansion, while $3.9 billion is directed toward growth initiatives such as the Crane restart, plant uprates, license renewals, and nuclear refueling and upgrade projects.
CEG Stock’s Earnings Estimates Moving North
The Zacks Consensus Estimate for CEG’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 28.65% and 13.44%, respectively. CEG’s long-term (three to five years) earnings growth rate is 21.62%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s 2026 and 2027 EPS implies year-over-year growth of 6.18% and 6.54%, respectively.
CEG’s Debt Usage Is Lower Than Industry Peers
The debt-to-capital of Constellation Energy is 33.08% compared with its industry’s 43.03%. The ratio indicates CEG is utilizing much lower debts compared with its peers to run operations. The declining interest rate will be beneficial for the company, as it will further reduce long-term interest expenses.
Image Source: Zacks Investment Research
NextEra Energy (NEE - Free Report) produces a large volume of clean energy and has initiatives to add more clean energy sources to its generation portfolio. NEE also utilizes debt to run its operations and the current debt-to-capital level is lower than the industry average.
CEG Stock Returns Higher Than the Industry
Return on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
Constellation Energy’s trailing 12-month ROE of 20.77% is better than the industry average of 7.16%.
Image Source: Zacks Investment Research
NextEra Energy’s trailing 12-month ROE is 12.18%, better than the industry average.
CEG Raises Shareholders’ Value
Constellation Energy targets dividend growth of 10% annually in future years. Its quarterly dividend is 42.65 cents per share at present, resulting in an annualized dividend of $1.71.
Since 2023, CEG’s board of directors has authorized the repurchase of up to $3 billion of its outstanding common stock. As of Dec. 31, 2025, there was $593 million of remaining authority to repurchase shares of the company's outstanding common stock. Check CEG’s dividend history here.
CEG Stock Trading at a Premium
Constellation Energy is currently trading at a forward 12-month P/E basis (P/E F12 M) of 22.85X, a premium compared with its industry’s 21.57X on P/EF12 M.
Image Source: Zacks Investment Research
Summing Up
Constellation Energy is well-positioned to capitalize on increasing clean energy demand across its service regions, supported by ongoing strategic investments and a growing renewable portfolio. The company’s strong generation asset base allows it to reliably meet this rising demand.
Constellation Energy’s rising estimates, strong ROE and lower debt usage make this Zacks Rank #3 (Hold) stock attractive. However, given its premium valuation, prospective investors may find it prudent to wait for a more attractive entry point.
View the Zacks #1 Rank List
Image: Bigstock
CEG Stock Falls Behind Industry in 6 Months: Buy, Hold or Sell?
Key Takeaways
Constellation Energy Corporation’s (CEG - Free Report) shares have declined 24.7% over the past six months against the Zacks Alternative Energy – Other industry’s rally of 5.7%. Expected postponement in the completion of transmission projects can create a delay in the restart of the 835 megawatt (“MW”) Three Mile Island plant and a lack of new data center contracts is adversely impacting Constellation Energy’s performance.
CEG is steadily expanding the supply of clean energy to the grid through the efficient operation of its nuclear fleet, while also benefiting from government support aimed at boosting large-scale clean energy generation.
Image Source: Zacks Investment Research
Another company, Duke Energy Corporation (DUK - Free Report) , is also actively pursuing nuclear energy expansion as part of its long-term clean energy strategy, particularly in the Carolinas. Duke Energy has gained 4.5% in the past six months, underperforming its industry.
Given the current underperformance in price, should you consider adding Constellation Energy to your portfolio? Let's examine the factors in detail and assess the investment prospects.
Primary Catalysts Behind CEG’s Performance
Constellation Energy is capitalizing on the rising demand for clean power by leveraging its diversified portfolio, particularly the nuclear fleet. This positions the company to effectively meet customer requirements, enhance revenues and contribute to the shift toward carbon-free energy. Constellation Energy’s strong focus on innovation and continued investments in sustainable energy technologies also enable it to navigate market dynamics more efficiently and capture emerging opportunities.
Close to 90% of Constellation Energy’s annual electricity generation is derived from carbon-free sources. The company aims to increase this share to 95% by 2030 and achieve 100% carbon-free generation by 2040. These initiatives are expected to streamline operations and potentially reduce costs through a greater reliance on advanced and efficient assets.
The acquisition of Calpine Corporation enhances the growth outlook of Constellation Energy by broadening its footprint in competitive power markets and adding efficient gas-fired generation assets. The transaction supports greater earnings diversification, strengthens cash flow stability and improves operational flexibility. This move also complements the company’s nuclear-focused clean energy platform, positioning it to capitalize on increasing electricity demand and the rising need for grid reliability.
Constellation Energy’s strategic investment plan and continued expansion of its clean energy portfolio are key drivers of the earnings growth. The company expects capital expenditures of about $5.7 billion in 2026 and $4.7 billion in 2027. Around 29% of this spending is allocated to nuclear fuel procurement, including inventory expansion, while $3.9 billion is directed toward growth initiatives such as the Crane restart, plant uprates, license renewals, and nuclear refueling and upgrade projects.
CEG Stock’s Earnings Estimates Moving North
The Zacks Consensus Estimate for CEG’s 2026 and 2027 earnings per share (EPS) indicates year-over-year growth of 28.65% and 13.44%, respectively. CEG’s long-term (three to five years) earnings growth rate is 21.62%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Duke Energy’s 2026 and 2027 EPS implies year-over-year growth of 6.18% and 6.54%, respectively.
CEG’s Debt Usage Is Lower Than Industry Peers
The debt-to-capital of Constellation Energy is 33.08% compared with its industry’s 43.03%. The ratio indicates CEG is utilizing much lower debts compared with its peers to run operations. The declining interest rate will be beneficial for the company, as it will further reduce long-term interest expenses.
Image Source: Zacks Investment Research
NextEra Energy (NEE - Free Report) produces a large volume of clean energy and has initiatives to add more clean energy sources to its generation portfolio. NEE also utilizes debt to run its operations and the current debt-to-capital level is lower than the industry average.
CEG Stock Returns Higher Than the Industry
Return on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
Constellation Energy’s trailing 12-month ROE of 20.77% is better than the industry average of 7.16%.
Image Source: Zacks Investment Research
NextEra Energy’s trailing 12-month ROE is 12.18%, better than the industry average.
CEG Raises Shareholders’ Value
Constellation Energy targets dividend growth of 10% annually in future years. Its quarterly dividend is 42.65 cents per share at present, resulting in an annualized dividend of $1.71.
Since 2023, CEG’s board of directors has authorized the repurchase of up to $3 billion of its outstanding common stock. As of Dec. 31, 2025, there was $593 million of remaining authority to repurchase shares of the company's outstanding common stock. Check CEG’s dividend history here.
CEG Stock Trading at a Premium
Constellation Energy is currently trading at a forward 12-month P/E basis (P/E F12 M) of 22.85X, a premium compared with its industry’s 21.57X on P/EF12 M.
Image Source: Zacks Investment Research
Summing Up
Constellation Energy is well-positioned to capitalize on increasing clean energy demand across its service regions, supported by ongoing strategic investments and a growing renewable portfolio. The company’s strong generation asset base allows it to reliably meet this rising demand.
Constellation Energy’s rising estimates, strong ROE and lower debt usage make this Zacks Rank #3 (Hold) stock attractive. However, given its premium valuation, prospective investors may find it prudent to wait for a more attractive entry point.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.