Constellation Energy Corporation (CEG), headquartered in Baltimore, Maryland, is renowned as the nation’s largest producer of clean, carbon-free energy and is a leading supplier of energy products and services. Valued at $69.48 billion by market cap, the company serves homes, institutional customers, community aggregations, and businesses. Its fleet of nuclear, hydro, wind, and solar generation facilities powers more than 16 million homes and businesses, providing 10% of all clean power on the grid in the U.S.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CEG perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. CEG has an ambitious goal of achieving 100% carbon-free generation by 2040.
The energy giant has fallen 6.7% from its 52-week high of $236.30, which it hit on May 24. Shares of CEG are up 30.5% over the past three months, significantly outperforming the Utilities ETF Vanguard’s (VPU) 8.6% gains over the same time frame.
Longer term, CEG shares have risen 137.3% over the past year, and in 2024, the stock is up 88.6%. By contrast, the VPU is up 9.4% on a YTD basis and 2.5% over the past 52 weeks.
The stock has been trading above its 50-day moving average since early June and its 200-day moving average since early June 2023, indicating a bullish price trend.
On Jun. 18, CEG shares closed up more than 3% after UBS raised its price target to $249 from $227.
Shares of CEG rose 16.8% in May after the company reported robust Q1 results. The growing optimism about AI-driven power demand growth can be attributed to its overall performance. The company’s adjusted EPS came in at $1.82, up from $0.78 in the year-ago quarter. Following the strong quarter, the company reaffirmed its full-year outlook. CEG expects full-year adjusted earnings between $7.23 and $8.03. The company also authorized a $1 billion expansion to its share buyback program.
Rival Duke Energy Corporation (DUK) has significantly underperformed CEG. DUK stock has gained 8.5% in the past 52 weeks and 3.1% YTD.
With its recent outperformance compared to the utilities sector, analysts remain optimistic about CEG’s prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts covering it, and the mean price target of $230.82 is a 4.7% premium to current levels.
On the date of publication, Dipanjan Banchur 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.
