Baltimore-based Constellation Energy Corporation (CEG) spun off from Exelon (EXC) in 2022, sells natural gas, renewable energy, and other energy-related products and services. With a market cap of $67.1 billion, Constellation excels in hydrogen, nuclear, and wind, serving two million customers and 75% of Fortune 100. It supports data centers and energy grids, anchoring the renewable energy industry. It is expected to announce its Q2 earnings before the market opens on Tuesday, August 6.
Ahead of the event, analysts expect Constellation Energy to report a profit of $1.87 per share, down 27% from $2.56 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections in three of the past four quarters while missing on one other occasion. Its EPS for the last reported quarter grew by 133.3% to $1.82, exceeding the consensus estimates by 11%.
In fiscal 2024, analysts expect Constellation Energy to report an EPS of $7.65, up 52.7% from $5.01 in fiscal 2023. In fiscal 2025, its EPS is projected to grow 20.1% year over year to $9.19.
CEG stock has rallied 82.1% on a YTD basis, substantially outperforming the S&P 500 Index’s ($SPX) 18.1% gains and the S&P 500 Utilities Sector SPDR’s (XLU) 9.8% returns over the same time frame.
In 2024, Constellation Energy shares surged, outpacing the broader market. The excitement stemmed from a strong financial outlook, the belief that tech companies will use nuclear energy for AI data centers, a boosted dividend, and a $1 billion share buyback plan.
On June 18, CEG stock jumped over 3% after UBS raised its price target to $249 from $227. In May, the stock climbed 16.8% following robust Q1 earnings results on May 9 and optimism about AI-driven power demand, reaffirming the company’s full-year outlook. Constellation Energy predicts 2024 adjusted EPS between $7.23 and $8.03.
The consensus opinion on Constellation Energy stock is moderately bullish, with a “Moderate Buy” rating overall. Out of the 12 analysts covering the stock, eight suggest a “Strong Buy,” and four analysts recommend a “Hold” rating. Over the past two months, a new “Strong Buy” recommendation has been added.
The average target price for Constellation Energy is $235.54, indicating a potential upside of 10.6% from the current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
