Constellation Energy Corporation (CEG), headquartered in Baltimore, Maryland, produces and sells energy products and services. With a market cap of $71.7 billion, the company generates and distributes nuclear, hydro, wind, and solar energy solutions serving homes, institutional customers, public sectors, community aggregations, and businesses.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and CEG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities – renewable industry. CEG’s acquisition of a major stake in the South Texas Project nuclear plant and its commitment to clean energy solutions are key strengths that align with the company’s focus on carbon-free energy generation. Its emphasis on sustainable energy sources drives long-term growth and solidify CEG’s position as a market leader.
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Despite its notable strength, CEG slipped 41% from its 52-week high of $352, achieved on Jan. 23. Over the past three months, CEG stock declined 18.1%, underperforming the Nasdaq Composite’s ($NASX) 9% dip during the same time frame.
In the longer term, shares of CEG dipped 7.2% on a YTD basis, underperforming NASX’s YTD losses of 6.4%. However, the stock climbed 15.4% over the past 52 weeks, outperforming NASX’s 12.7% returns over the last year.
To confirm the bearish trend, CEG has been trading below its 50-day moving average since late February. The stock is trading below its 200-day moving average recently.
CEG’s strong performance can be attributed to its acquisition of Calpine, creating the nation’s largest clean energy firm. The company’s focus on expanding its renewable portfolio and securing contracts with tech giants like Microsoft Corporation (MSFT) have also contributed to its success. Operating nuclear-powered generating units provide a reliable source of carbon-free energy, making CEG well-positioned to meet the growing demand from data centers. The company’s strategic investment plans and favorable earnings reflect its commitment to clean energy production and expansion.
On Feb. 18, CEG shares closed up more than 2% after reporting its Q4 results. Its adjusted EPS came in at $2.44, up 40.2% year over year. The company’s revenue stood at $5.4 billion, down 7.1% year over year.
CEG’s rival, Brookfield Renewable Partners L.P. (BEP) shares lagged behind the stock, with a 3.8% loss over the past 52 weeks but outpaced the stock with a 3.7% dip on a YTD basis.
Wall Street analysts are moderately bullish on CEG’s prospects. The stock has a consensus “Moderate Buy” rating from the 17 analysts covering it, and the mean price target of $316.44 suggests an ambitious potential upside of 52.4% from current price levels.
On the date of publication, Neha Panjwani 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.
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