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.
Constellation Energy vs. NextEra Energy: Which Utility Stock Wins Now?
Read MoreHide Full Article
Key Takeaways
NEE's shares rose 11.9% in six months while CEG fell 25.1%, as both expand clean electricity output.
NextEra plans nearly $94.2B in 2025-2030 capex for renewables, storage and grid modernization.
NEE's dividend yield is 2.77% vs. CEG's 0.59%, and trades at 23.38x forward P/E vs. 23.68x.
The companies operating in the Zacks Utility - Electric Power industry are enjoying the benefits of rising demand and electricity prices in the United States. The demand for reliable clean electricity is rising in the United States, due to the development of AI-based data centers, the usage of more electric vehicles, more demand from industrial customers due to the reshoring of some industries and the usage of more electricity by residential customers.
With growing emission concerns and stricter environmental regulations, U.S. utilities are increasingly shifting toward cleaner energy mixes. Companies such as NextEra Energy (NEE - Free Report) and Constellation Energy (CEG - Free Report) are boosting investments in renewables, including solar, wind and energy storage. This transition is lowering carbon intensity while strengthening long-term sustainability, as a larger portion of electricity generation comes from low or zero-emission sources without compromising reliability or meeting rising demand.
NextEra Energy is a leading U.S. utility widely recognized for its dominance in renewable energy and long-term sustainable growth strategy. The company continues to invest significantly in wind, solar, battery storage and grid modernization, reinforcing its leadership in the clean energy transition. Through its subsidiaries, Florida Power & Light and NextEra Energy Resources, NEE operates one of the largest wind and solar portfolios globally. Supported by strong financial execution and a history of innovation, NEE offers investors a blend of stability and long-term growth potential driven by the shift toward clean energy.
Constellation Energy presents an attractive investment case as one of the largest producers of carbon-free nuclear power in the United States. Its fleet of nuclear assets delivers reliable baseload electricity with minimal exposure to fuel price volatility, ensuring steady and predictable cash flows. With increasing demand for firm, clean power from data centers and industrial electrification, the company is well-positioned to benefit from the growing need for zero-emission energy. Ongoing capital investment and supportive policy trends further enhance its long-term growth outlook.
With clean energy demand accelerating, it is worth taking a closer look at the fundamentals of both companies to determine which one presents the stronger investment opportunity.
NEE and CEG’s Earnings Estimates
The Zacks Consensus Estimate for NextEra Energy’s earnings per share in 2026 has increased 0.25% in the past 60 days. Long-term (three to five years) earnings growth is pegged at 8.51%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Constellation Energy’s earnings per share in 2026 has declined 2.32% in the past 60 days. Long-term earnings growth is pegged at 21.62%.
Image Source: Zacks Investment Research
NEE and CEG’s Return on Equity
Return on Equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
NextEra Energy’s current ROE is 12.25% compared with Constellation Energy’s 20.77%.
Image Source: Zacks Investment Research
NEE & CEG’s Dividend Yield
Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. It is an important indicator of a company’s financial health and stability, often signaling strong cash flow and consistent earnings.
Currently, the dividend yield for NextEra Energy is 2.77% compared with the Zacks S&P 500 composite’s average of 1.4%, and the same for Constellation Energy is 0.59%.
NEE & CEG’s Long-Term Strategic Investment Plans
Capital expenditure is critical in the energy sector, as it drives infrastructure development, system reliability and long-term growth. Utilities must consistently invest in power generation, transmission and distribution networks to meet rising demand, integrate renewable energy sources and comply with evolving regulatory standards.
NextEra Energy plans to invest nearly $94.2 billion between 2025 and 2030 to support growth and infrastructure development. Constellation Energy plans to invest nearly $5.7 billion and $4.7 billion for 2026 and 2027, respectively. Nearly 29% of projected capital expenditures are for the acquisition of nuclear fuel, which includes additional nuclear fuel to increase inventory levels.
Valuation
NextEra Energy currently appears to be trading at a discount compared with Constellation Energy on a Price/Earnings Forward 12-month basis. (P/E- F12M).
NEE is currently trading at 23.38X, while CEG is trading at 23.68X.
Image Source: Zacks Investment Research
Price Performance
In the past six months, NextEra Energy’s shares have gained 14% against Constellation Energy’s decline of 24.8%.
Price Performance (Six Months)
Image Source: Zacks Investment Research
Summing Up
Constellation Energy and NextEra Energy produce substantial amounts of clean energy, enabling them to efficiently meet the electricity needs of millions of customers across their U.S. service areas.
Based on the above discussion, NextEra Energy currently has an edge over Constellation Energy. NEE’s price performance, better earnings estimate movement, stronger dividend yield, elaborate capital investment and cheaper valuation make it attractive compared with Constellation Energy.
Though NextEra Energy and Constellation Energy both carry a Zacks Rank #3 (Hold), the former is showing better prospects.
View the Zacks #1 Rank List
Image: Bigstock
Constellation Energy vs. NextEra Energy: Which Utility Stock Wins Now?
Key Takeaways
The companies operating in the Zacks Utility - Electric Power industry are enjoying the benefits of rising demand and electricity prices in the United States. The demand for reliable clean electricity is rising in the United States, due to the development of AI-based data centers, the usage of more electric vehicles, more demand from industrial customers due to the reshoring of some industries and the usage of more electricity by residential customers.
With growing emission concerns and stricter environmental regulations, U.S. utilities are increasingly shifting toward cleaner energy mixes. Companies such as NextEra Energy (NEE - Free Report) and Constellation Energy (CEG - Free Report) are boosting investments in renewables, including solar, wind and energy storage. This transition is lowering carbon intensity while strengthening long-term sustainability, as a larger portion of electricity generation comes from low or zero-emission sources without compromising reliability or meeting rising demand.
NextEra Energy is a leading U.S. utility widely recognized for its dominance in renewable energy and long-term sustainable growth strategy. The company continues to invest significantly in wind, solar, battery storage and grid modernization, reinforcing its leadership in the clean energy transition. Through its subsidiaries, Florida Power & Light and NextEra Energy Resources, NEE operates one of the largest wind and solar portfolios globally. Supported by strong financial execution and a history of innovation, NEE offers investors a blend of stability and long-term growth potential driven by the shift toward clean energy.
Constellation Energy presents an attractive investment case as one of the largest producers of carbon-free nuclear power in the United States. Its fleet of nuclear assets delivers reliable baseload electricity with minimal exposure to fuel price volatility, ensuring steady and predictable cash flows. With increasing demand for firm, clean power from data centers and industrial electrification, the company is well-positioned to benefit from the growing need for zero-emission energy. Ongoing capital investment and supportive policy trends further enhance its long-term growth outlook.
With clean energy demand accelerating, it is worth taking a closer look at the fundamentals of both companies to determine which one presents the stronger investment opportunity.
NEE and CEG’s Earnings Estimates
The Zacks Consensus Estimate for NextEra Energy’s earnings per share in 2026 has increased 0.25% in the past 60 days. Long-term (three to five years) earnings growth is pegged at 8.51%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Constellation Energy’s earnings per share in 2026 has declined 2.32% in the past 60 days. Long-term earnings growth is pegged at 21.62%.
Image Source: Zacks Investment Research
NEE and CEG’s Return on Equity
Return on Equity (“ROE”) is an essential financial indicator that evaluates a company’s efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value.
NextEra Energy’s current ROE is 12.25% compared with Constellation Energy’s 20.77%.
Image Source: Zacks Investment Research
NEE & CEG’s Dividend Yield
Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. It is an important indicator of a company’s financial health and stability, often signaling strong cash flow and consistent earnings.
Currently, the dividend yield for NextEra Energy is 2.77% compared with the Zacks S&P 500 composite’s average of 1.4%, and the same for Constellation Energy is 0.59%.
NEE & CEG’s Long-Term Strategic Investment Plans
Capital expenditure is critical in the energy sector, as it drives infrastructure development, system reliability and long-term growth. Utilities must consistently invest in power generation, transmission and distribution networks to meet rising demand, integrate renewable energy sources and comply with evolving regulatory standards.
NextEra Energy plans to invest nearly $94.2 billion between 2025 and 2030 to support growth and infrastructure development. Constellation Energy plans to invest nearly $5.7 billion and $4.7 billion for 2026 and 2027, respectively. Nearly 29% of projected capital expenditures are for the acquisition of nuclear fuel, which includes additional nuclear fuel to increase inventory levels.
Valuation
NextEra Energy currently appears to be trading at a discount compared with Constellation Energy on a Price/Earnings Forward 12-month basis. (P/E- F12M).
NEE is currently trading at 23.38X, while CEG is trading at 23.68X.
Image Source: Zacks Investment Research
Price Performance
In the past six months, NextEra Energy’s shares have gained 14% against Constellation Energy’s decline of 24.8%.
Price Performance (Six Months)
Image Source: Zacks Investment Research
Summing Up
Constellation Energy and NextEra Energy produce substantial amounts of clean energy, enabling them to efficiently meet the electricity needs of millions of customers across their U.S. service areas.
Based on the above discussion, NextEra Energy currently has an edge over Constellation Energy. NEE’s price performance, better earnings estimate movement, stronger dividend yield, elaborate capital investment and cheaper valuation make it attractive compared with Constellation Energy.
Though NextEra Energy and Constellation Energy both carry a Zacks Rank #3 (Hold), the former is showing better prospects.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.