Constellation Energy Corporation (CEG), headquartered in Baltimore, Maryland, is the largest carbon-free energy producer in the U.S., specializing in nuclear, wind, solar, and natural gas power generation. With a market cap of $96.9 billion, the company provides energy management solutions, supports customers’ sustainability goals, and is committed to achieving net-zero emissions by 2040.
Shares of Constellation Energy have delivered remarkable performance, significantly outpacing the broader market and utility sector over the past 52 weeks. CEG shares have surged 133.8% during this period, compared to the S&P 500 Index’s ($SPX) 20.6% gain. In 2025, CEG is up 38.5%, far exceeding the SPX's 2.5% increase.
Additionally, CEG has outperformed the Utilities Select Sector SPDR Fund's (XLU) 29.2% return over the past year and a 3.2% YTD rise.
Despite a solid rally over the past year, shares of CEG dropped 20.9% on Jan. 27 following the announcement of DeepSeek, a Chinese AI start-up delivering high-performance AI capabilities at significantly lower costs. The news sparked concerns about the durability of the AI infrastructure boom, prompting investors to reevaluate expectations for electricity demand driven by AI data centers.
For the current fiscal year, ending in December, analysts expect CEG's EPS to grow 68.3% year-over-year to $8.43. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings and six “Holds.”
This configuration is slightly less bullish than a month ago, with 12 “Strong Buy” ratings on the stock.
On January 14, Jefferies Financial Group Inc. (JEF) raised Constellation Energy's price target from $234 to $274, maintaining a “Hold” rating. The revision reflects the positive impact of Constellation’s acquisition of Calpine, which is seen as a value-enhancing move despite Calpine’s focus on natural gas compared to Constellation's emphasis on nuclear energy. The updated price target also underscores confidence in the company's strategic moves but signals caution given its premium valuation relative to peers.
The mean price target of $314.12 represents a 16.6% premium to CEG’s current price levels. The Street-high price target of $385 suggests an upside potential of 30.8%.
