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CEG Stock Underperforms Industry in Past 3 Months: How to Play?
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Key Takeaways
CEG's shares fell behind the industry in three months as the lack of new large data-center contracts weighed.
Calpine acquisition adds dispatchable gas and a retail platform to serve customers seeking firm power.
$350M wind repowering aims to boost output and extend projects like Maryland's Criterion by 20 years.
Constellation Energy Corporation’s (CEG - Free Report) shares have gained 0.6% over the past three months compared with the Zacks Alternate Energy – Other industry’s rally of 6%.
The near-term weakness in the share prices can be attributed to the delays in transmission project completion, which may postpone the restart of the 835-megawatt (“MW”) Three Mile Island plant, while the absence of new large data center contracts is weighing on Constellation Energy’s performance.
Constellation Energy will gain from the Calpine acquisition, which adds dispatchable natural gas capacity, development capabilities and an expanded retail platform that can be used to serve customers seeking firm power with price visibility.
Price Performance (Three months)
Image Source: Zacks Investment Research
Another stock, Vistra Corp. (VST - Free Report) , has multi-fuel power generation capabilities, with a significant volume of electricity production coming from nuclear power plants. Vistra’s shares also declined 11.1% in the past three months.
Given the current softness in share price, should you consider adding Constellation Energy to your portfolio? Let's examine the factors in detail and assess the investment prospects.
Factors That Can Boost Constellation Energy’s 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 92.3% capacity factor in first-quarter 2026.
The company is strengthening its nuclear operations. CEG is broadening clean electricity generation assets through organic and acquisitions, which enhances portfolio diversity and positions itself for sustained growth in a cleaner, more sustainable energy market. The Calpine acquisition adds dispatchable natural gas capacity, development capabilities and an expanded retail platform that can be used to serve customers seeking firm power with price visibility. The combined platform has also continued to deliver projects, including commissioning the 105 MW Pastoria Solar Project and achieving commercial operations at the 460 MW Pin Oak Creek Energy Center, adding incremental capacity in key markets.
Constellation Energy’s repowering strategy is aimed at increasing output from existing renewable sites without expanding the land footprint. The company is launching a $350 million initiative to increase the output and lifespan of its wind portfolio, including extending the life of its Criterion wind project in Maryland by 20 years.
Constellation Energy’s earnings growth is supported by its strategic investments and commitment to expanding the clean energy generation portfolio. The company plans to invest about $5.7 billion in 2026 and $4.7 billion in 2027, with roughly 29% allocated to nuclear fuel acquisition to ensure reliable, clean power generation.
Constellation Energy’s Earnings Estimates Moving Up
The Zacks Consensus Estimate for Constellation Energy’s 2026 and 2027 earnings per share indicates year-over-year growth of 25.13% and 16.31%, respectively.
Image Source: Zacks Investment Research
The same for Vistra’s 2026 and 2027 earnings per share indicates year-over-year growth of 76.81% and 23.02%, respectively.
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 and rising demand in the service territory. The company’s earnings surpassed estimates in three out of the last four reported quarters and missed in one, resulting in an average surprise beat of 3.27%.
Image Source: Zacks Investment Research
Another company, 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 4.06%.
CEG Stock Returns Better Than Industry
Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Constellation Energy’s trailing 12-month return on equity of 16.81% is better than the industry average of 7.3%.
Image Source: Zacks Investment Research
Duke Energy’s trailing 12-month return on equity is 9.73%, which is also better than its industry average of 11.08%.
CEG Increasing Value of Shareholders
Constellation Energy aims to increase shareholder value through its capital allocation plans. CEG increased its dividend 150% in the first two years as a standalone company and targets 10% annual dividend growth in future years. Its quarterly dividend is 42.65 cents per share, resulting in an annualized dividend of $1.71, providing a recurring cash return alongside reinvestment and buybacks.
Constellation Energy continues to use buybacks opportunistically to enhance per-share value. Since 2023, its board of directors has authorized up to $3 billion of repurchases, with $593 million remaining as of Dec. 31, 2025. After the first-quarter pullback in the stock, management moved back into the market and repurchased about 1.2 million shares at an average price of roughly $285 per share for total purchases of $335 million, underscoring confidence in the long-term value of the business.
CEG Stock Trades at a Discount
Constellation Energy is currently trading at a discount compared with its industry on a forward 12-month P/E basis. CEG is trading at P/E F12M of 22.87X compared with its industry’s 23.02X.
Image Source: Zacks Investment Research
Wrapping Up
Constellation Energy is well positioned to benefit from increasing clean-energy demand across its service territories. Backed by a strong generation portfolio, the company can efficiently and reliably meet rising power needs.
Shareholders are expected to gain from consistent dividend payments, share repurchase initiatives and improving earnings prospects, which collectively strengthen the company’s financial outlook.
Constellation Energy is currently trading at a discount, but given the softness in share prices, a wait-and-see approach is apt for this Zacks Rank #3 (Hold) stock for the moment.
View the Zacks #1 Rank List
Image: Bigstock
CEG Stock Underperforms Industry in Past 3 Months: How to Play?
Key Takeaways
Constellation Energy Corporation’s (CEG - Free Report) shares have gained 0.6% over the past three months compared with the Zacks Alternate Energy – Other industry’s rally of 6%.
The near-term weakness in the share prices can be attributed to the delays in transmission project completion, which may postpone the restart of the 835-megawatt (“MW”) Three Mile Island plant, while the absence of new large data center contracts is weighing on Constellation Energy’s performance.
Constellation Energy will gain from the Calpine acquisition, which adds dispatchable natural gas capacity, development capabilities and an expanded retail platform that can be used to serve customers seeking firm power with price visibility.
Price Performance (Three months)
Image Source: Zacks Investment Research
Another stock, Vistra Corp. (VST - Free Report) , has multi-fuel power generation capabilities, with a significant volume of electricity production coming from nuclear power plants. Vistra’s shares also declined 11.1% in the past three months.
Given the current softness in share price, should you consider adding Constellation Energy to your portfolio? Let's examine the factors in detail and assess the investment prospects.
Factors That Can Boost Constellation Energy’s 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 92.3% capacity factor in first-quarter 2026.
The company is strengthening its nuclear operations. CEG is broadening clean electricity generation assets through organic and acquisitions, which enhances portfolio diversity and positions itself for sustained growth in a cleaner, more sustainable energy market. The Calpine acquisition adds dispatchable natural gas capacity, development capabilities and an expanded retail platform that can be used to serve customers seeking firm power with price visibility. The combined platform has also continued to deliver projects, including commissioning the 105 MW Pastoria Solar Project and achieving commercial operations at the 460 MW Pin Oak Creek Energy Center, adding incremental capacity in key markets.
Constellation Energy’s repowering strategy is aimed at increasing output from existing renewable sites without expanding the land footprint. The company is launching a $350 million initiative to increase the output and lifespan of its wind portfolio, including extending the life of its Criterion wind project in Maryland by 20 years.
Constellation Energy’s earnings growth is supported by its strategic investments and commitment to expanding the clean energy generation portfolio. The company plans to invest about $5.7 billion in 2026 and $4.7 billion in 2027, with roughly 29% allocated to nuclear fuel acquisition to ensure reliable, clean power generation.
Constellation Energy’s Earnings Estimates Moving Up
The Zacks Consensus Estimate for Constellation Energy’s 2026 and 2027 earnings per share indicates year-over-year growth of 25.13% and 16.31%, respectively.
Image Source: Zacks Investment Research
The same for Vistra’s 2026 and 2027 earnings per share indicates year-over-year growth of 76.81% and 23.02%, respectively.
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 and rising demand in the service territory. The company’s earnings surpassed estimates in three out of the last four reported quarters and missed in one, resulting in an average surprise beat of 3.27%.
Image Source: Zacks Investment Research
Another company, 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 4.06%.
CEG Stock Returns Better Than Industry
Return on equity, a profitability measure, reflects how effectively a company utilizes its shareholders’ funds to generate income.
Constellation Energy’s trailing 12-month return on equity of 16.81% is better than the industry average of 7.3%.
Image Source: Zacks Investment Research
Duke Energy’s trailing 12-month return on equity is 9.73%, which is also better than its industry average of 11.08%.
CEG Increasing Value of Shareholders
Constellation Energy aims to increase shareholder value through its capital allocation plans. CEG increased its dividend 150% in the first two years as a standalone company and targets 10% annual dividend growth in future years. Its quarterly dividend is 42.65 cents per share, resulting in an annualized dividend of $1.71, providing a recurring cash return alongside reinvestment and buybacks.
Constellation Energy continues to use buybacks opportunistically to enhance per-share value. Since 2023, its board of directors has authorized up to $3 billion of repurchases, with $593 million remaining as of Dec. 31, 2025. After the first-quarter pullback in the stock, management moved back into the market and repurchased about 1.2 million shares at an average price of roughly $285 per share for total purchases of $335 million, underscoring confidence in the long-term value of the business.
CEG Stock Trades at a Discount
Constellation Energy is currently trading at a discount compared with its industry on a forward 12-month P/E basis. CEG is trading at P/E F12M of 22.87X compared with its industry’s 23.02X.
Image Source: Zacks Investment Research
Wrapping Up
Constellation Energy is well positioned to benefit from increasing clean-energy demand across its service territories. Backed by a strong generation portfolio, the company can efficiently and reliably meet rising power needs.
Shareholders are expected to gain from consistent dividend payments, share repurchase initiatives and improving earnings prospects, which collectively strengthen the company’s financial outlook.
Constellation Energy is currently trading at a discount, but given the softness in share prices, a wait-and-see approach is apt for this Zacks Rank #3 (Hold) stock for the moment.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.