With a market cap of $72.7 billion, Constellation Energy Corporation (CEG) is a leading energy provider, specializing in the generation and sale of electricity across the United States. Based in Baltimore, Maryland, it offers natural gas, renewable energy, and other energy-related services to a wide range of customers, including utilities, municipalities, and residential clients.
Companies valued at $10 billion or more are generally considered “large-cap” stocks and Constellation Energy fits this criterion perfectly, exceeding the mark. With a diverse portfolio of energy sources, including nuclear, wind, solar, natural gas, and hydroelectric, Constellation has a generating capacity of approximately 33,094 megawatts.
The nuclear energy giant company pulled back 18.9% from its 52-week high of $288.75. Shares of CEG are risen 25.1% over the past three months, outperforming the broader S&P 500 Index's ($SPX) 9.4% rise in the same period.
Longer term, on a YTD basis, shares of Constellation Energy have surged 100.4%, outpacing SPX's 27.4% increase. Also, CEG has climbed 101.7% over the past 52 weeks, compared to SPX's 31.5% return.
CEG has been in a bullish trend, trading above its 200-day moving average since last year. However, since November, the stock has remained below its 50-day moving average.
Constellation Energy's outperformance stems from its partnership with Microsoft to restart the Three Mile Island nuclear plant for AI data centers and its leadership in clean nuclear energy, driving strong investor confidence. However, the stock tumbled 12.5% on Nov. 4 despite strong Q3 earnings, with adjusted EPS of $2.74 and sales of $6.5 billion, both beating expectations. The decline was driven by concerns over regulatory risk after the Federal Energy Regulatory Commission (FERC) rejected a similar nuclear power deal involving Talen Energy (TLN) and Amazon (AMZN), raising fears about Constellation's deal with Microsoft (MSFT).
The stock’s rival, Duke Energy Corporation (DUK), has seen a 15.6% rise over the past 52 weeks and a 13.6% gain on a YTD basis, lagging behind CEG's performances in both periods.
Despite CEG’s outperformance, analysts are cautiously optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering it, and it is currently trading below the mean price target of $281.06.
