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Constellation Energy Corporation (CEG) Stock

Constellation Energy Corporation Stock Details, Movements and Public Alerts

Constellation Energy (CEG): The AI Boom Just Brought Three Mile Island Back From the Dead

On September 20, 2024, CEO Joe Dominguez made an announcement that would have seemed impossible just two years earlier: Constellation Energy would spend $1.6 billion to restart Three Mile Island's Unit 1, shut down in 2019 when it couldn't compete with cheap natural gas. The game-changer? A 20-year power purchase agreement with Microsoft—the largest in Constellation's history—to supply carbon-free electricity exclusively for AI data centers. The market reaction was immediate: Constellation's stock surged 22% that day and has more than doubled year-to-date. This isn't just a corporate deal; it's a fundamental shift in how America powers its digital economy. As artificial intelligence training consumes exponentially more electricity and tech giants face net-zero commitments, Dominguez controls the only zero-carbon baseload power source that works 24/7 regardless of weather. For investors, Constellation represents the rare convergence of secular mega-trends: AI infrastructure buildout, data center expansion, and decarbonization mandates.

52-Week Range

$412.70 - $160.94

-3.93% from high · +146.37% from low

Avg Daily Volume

2,661,326

20-day average

100-day avg: 2,567,606

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

37.58

Above market average

Forward P/E

31.75

Earnings expected to grow

PEG Ratio

3.63

Potentially overvalued

Price to Book

8.31

EV/EBITDA

18.52

EPS (TTM)

$9.58

Price to Sales

4.53

Beta

1.12

Similar volatility to market

How is CEG valued relative to its earnings and growth?
Constellation Energy Corporation trades at a P/E ratio of 37.58, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 31.75 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.63 indicates a premium valuation even accounting for growth.
What is CEG's risk profile compared to the market?
With a beta of 1.12, Constellation Energy Corporation is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 8.31 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

12.10%

Operating Margin

15.40%

EBITDA

$6.36B

Return on Equity

23.50%

Return on Assets

4.48%

Revenue Growth (YoY)

11.40%

Earnings Growth (YoY)

3.50%

How profitable and efficient is CEG's business model?
Constellation Energy Corporation achieves a profit margin of 12.10%, meaning it retains $12.10 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 15.40% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 23.50% and ROA at 4.48%, the company generates strong returns on invested capital.
What are CEG's recent growth trends?
Constellation Energy Corporation's revenue grew by 11.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 3.50% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against UTILITIES - RENEWABLE industry averages for proper context.

Dividend Information

Dividend Per Share

$1.48

Dividend Yield

0.41%

Ex-Dividend Date

Aug 18, 2025

Dividend Date

Sep 5, 2025

What dividend income can investors expect from CEG?
Constellation Energy Corporation offers a dividend yield of 0.41%, paying $1.48 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 18, 2025.
How reliable is CEG's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Constellation Energy Corporation pays $1.48 per share in dividends against earnings of $9.58 per share, resulting in a payout ratio of 15.46%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Sep 5, 2025.

Company Size & Market

Market Cap

$112.5B

Revenue (TTM)

$24.82B

Revenue/Share (TTM)

$79.05

Shares Outstanding

312.41M

Book Value/Share

$43.04

Asset Type

Common Stock

What is CEG's market capitalization and position?
Constellation Energy Corporation has a market capitalization of $112.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 312.41M shares outstanding, the company's ownership is relatively concentrated. As a major player in the UTILITIES - RENEWABLE industry, it competes with other firms in this sector.
How does CEG's price compare to its book value?
Constellation Energy Corporation's book value per share is $43.04, while the current stock price is $396.50, resulting in a price-to-book (P/B) ratio of 9.21. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$355.34

10.38% downside potential

Analyst Recommendations

Strong Buy

2

Buy

7

Hold

5

Sell

0

Strong Sell

0

How reliable are analyst predictions for CEG?
14 analysts cover CEG with 64% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $355.34 implies -10.4% downside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CEG?
Current analyst recommendations:2 Strong Buy, 7 Buy, 5 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Oct 6, 2025, 06:48 PM

Technical Indicators

RSI (14-day)

54.58

Neutral

50-Day Moving Average

$335.84

18.06% above MA-50

200-Day Moving Average

$291.40

36.07% above MA-200

MACD Line

15.87

MACD Signal

14.87

MACD Histogram

0.99

Bullish

What does CEG's RSI value tell investors?
The RSI (Relative Strength Index) for CEG is currently 54.58, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret CEG's MACD and moving average crossovers?
MACD analysis shows the MACD line at 15.87 above the signal line at 14.87, with histogram at 0.99. This bullish crossover suggests upward momentum is building. The 50-day MA ($335.84) is above the 200-day MA ($291.40), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 21, 2025, 01:02 AM

Active Alerts

Alert Condition
Price decreases by
Threshold
3%
Created
Oct 19, 2025, 07:28 PM

Constellation Energy Corporation (CEG) Stock Analysis 2025: Complete Investment Guide

When AI Training Needs More Power Than a Small Country

Three Mile Island's Unit 1 went dark in 2019, a casualty of brutal economics: nuclear plants with $40-50/MWh operating costs couldn't compete when natural gas crashed below $30/MWh. The plant employed 700 people and generated enough carbon-free electricity for 800,000 homes, but markets don't care about carbon—they care about price. Fast forward five years, and the world looks radically different. Training GPT-4 consumed 50 gigawatt-hours of electricity. Google's DeepMind reports AI model training costs double every 3.4 months. Hyperscale data centers now consume 10-20 megawatts continuously—equivalent to powering 10,000 homes.

Enter Joe Dominguez and Constellation Energy. On September 20, 2024, Dominguez announced that Microsoft signed a 20-year agreement to purchase 100% of the power from Three Mile Island Unit 1 once restarted. The plant will operate exclusively for Microsoft's AI infrastructure, providing 835 megawatts of carbon-free baseload power that runs 24/7 regardless of sun or wind. The deal increases Constellation's annual EPS growth from 10% to 13% through 2030, creates 3,400 jobs, and generates $16 billion for Pennsylvania's economy. Wall Street responded decisively: CEG stock jumped 22% that day and has more than doubled since January 2024. Nuclear power didn't just become economically viable again—it became essential infrastructure for the AI revolution.

Business Model & Competitive Moat

Constellation Energy operates the largest nuclear fleet in America: 21 reactors across 12 plants generating approximately 32,400 megawatts of carbon-free electricity. Unlike traditional utilities that sell to retail customers, Constellation primarily operates in competitive wholesale power markets (especially PJM Interconnection covering the Mid-Atlantic and Midwest). The company sells electricity under long-term power purchase agreements to commercial customers, utilities, and increasingly, hyperscale data center operators.

The competitive moat is extraordinary and essentially impossible to replicate. Building new nuclear capacity in the United States is prohibitively expensive (estimated $6,000-10,000 per kilowatt) and faces decade-long permitting battles. Constellation's existing fleet represents irreplaceable infrastructure—nuclear plants that took decades to permit, construct, and certify. The company's expertise operating the largest nuclear fleet creates an operational moat: managing nuclear facilities safely requires specialized talent and regulatory relationships that take years to develop. Most critically, nuclear is the only carbon-free baseload power source available 24/7. Solar and wind suffer intermittency; batteries can't scale to data center needs; natural gas emits CO2. For tech giants with net-zero commitments needing guaranteed power every hour of every day, Constellation has no substitute.

Financial Performance

Constellation's financial transformation mirrors the nuclear renaissance:

  • •Stock Surge: CEG shares jumped 22% the day of the Microsoft announcement and have more than doubled in 2024 as market recognizes nuclear's strategic value
  • •EPS Growth Acceleration: Microsoft deal increases annual base EPS growth rate from 10% to 13% (2024-2030), reflecting premium pricing power
  • •Three Mile Island Economics: $1.6B investment to restart TMI-1, with fixed-price Microsoft contract providing guaranteed returns through 2048
  • •Government Contracts: $1B+ in combined federal contracts to supply 13+ government agencies, including $840M 10-year deal starting 2025
  • •Economic Impact: TMI restart alone creates 3,400 jobs, $3B in state/federal taxes, $16B contribution to Pennsylvania GDP

Growth Catalysts

  • •AI Power Demand Explosion: Hyperscale AI training facilities require 10-100MW+ of continuous power; Constellation is the only provider with carbon-free baseload capacity at scale
  • •Data Center Buildout Wave: Amazon, Google, Meta, Microsoft racing to build AI infrastructure—all need guaranteed 24/7 power with zero carbon footprint to meet sustainability commitments
  • •Additional Plant Restarts: Three Mile Island proves the economic model; Constellation could restart other mothballed reactors if hyperscalers commit to similar long-term PPAs
  • •Federal Support: Inflation Reduction Act nuclear tax credits plus growing government recognition that AI leadership requires energy independence strengthens Constellation's negotiating position
  • •Natural Gas Price Volatility: Any spike in gas prices makes Constellation's fixed-price nuclear contracts even more valuable to customers seeking cost certainty

Risks & Challenges

  • •Three Mile Island Execution Risk: Restarting a plant shut down for 9 years is technically complex; any delays past 2028 target or cost overruns above $1.6B budget damage credibility
  • •Regulatory Approval: Nuclear Regulatory Commission must approve restart; while likely given Unit 1's safety record, any complications create uncertainty
  • •AI Bubble Concerns: If AI investment slows dramatically, hyperscale data center buildout could stall, eliminating demand for expensive nuclear PPAs
  • •Technological Displacement: Breakthroughs in battery storage, next-gen geothermal, or small modular reactors (SMRs) could eventually compete with large nuclear plants
  • •Valuation Risk: Stock has more than doubled in 2024—substantial good news may already be priced in, leaving limited upside unless additional major deals materialize

Competitive Landscape

Constellation faces limited direct competition in the nuclear space. Exelon (CEG's former parent before the 2022 spinoff) operates nuclear plants but focuses on regulated utility markets rather than competitive wholesale. Duke Energy and Dominion Energy operate nuclear fleets but are vertically integrated utilities, not independent power producers. The closest comparables are Vistra Energy and NRG Energy, which operate fossil fuel plants—but neither offers carbon-free baseload at scale.

The real competitive threat comes from alternative power sources. Amazon recently signed a deal with Talen Energy to purchase power from the Susquehanna nuclear plant—validating Constellation's model but creating competition for remaining hyperscale deals. Renewable developers like NextEra Energy argue that solar/wind plus battery storage can meet data center needs cheaper, though they struggle with the 24/7 reliability requirement. Joe Dominguez's key advantage is timing: Constellation moved first with Microsoft, establishing proof-of-concept while competitors were still evaluating the nuclear restart model. With only a handful of shutdown-but-restartable reactors available and four hyperscalers (Microsoft, Amazon, Google, Meta) needing power, Constellation controls scarce supply in an exploding demand market.

Who Is This Stock Suitable For?

Perfect For

  • ✓Growth investors seeking exposure to AI infrastructure buildout
  • ✓ESG/clean energy investors wanting carbon-free power without intermittency issues
  • ✓Long-term investors (5+ years) betting on continued data center expansion
  • ✓Investors seeking utility-like stability with tech sector growth dynamics

Less Suitable For

  • ✗Value investors uncomfortable with premium valuations (stock doubled in 2024)
  • ✗Short-term traders (contract execution plays out over years, not quarters)
  • ✗Nuclear skeptics concerned about safety or regulatory risks
  • ✗Investors needing current income (no dividend currently paid)

Investment Thesis

Constellation Energy sits at the intersection of three unstoppable trends: exponential AI compute growth, hyperscale data center expansion, and corporate decarbonization mandates. Joe Dominguez recognized earlier than competitors that these trends create unprecedented demand for carbon-free baseload power—electricity that flows continuously regardless of weather, time of day, or grid conditions. The Microsoft deal validates the thesis spectacularly: the world's most sophisticated technology buyer just committed 20 years and implicitly blessed $1.6 billion in restart capital because no alternative meets their requirements.

The investment case extends beyond Three Mile Island. Constellation operates 21 reactors; Microsoft's deal covers one. Amazon, Google, and Meta all face identical constraints: massive AI power needs, net-zero commitments, and 24/7 reliability requirements. Each represents potential additional contracts at premium pricing. Government agencies awarded Constellation $1 billion in recent contracts, signaling federal recognition of nuclear's strategic importance. The stock has doubled, but if Constellation signs even one more hyperscale deal approaching Microsoft's scale, current valuations look reasonable. The key risks are execution (TMI restart on time and budget) and whether AI investment continues at current pace. For investors with conviction that AI is structural rather than cyclical and willingness to hold 3-5 years, Constellation offers rare exposure to essential infrastructure for the digital economy's next chapter.

Conclusion

Buy for growth investors with 3-5 year horizons focused on AI infrastructure megatrend. Constellation offers best-in-class exposure to the intersection of AI, data centers, and decarbonization. Yes, the stock has doubled—but if this is the early innings of a decade-long AI buildout requiring exponentially more power, Constellation's monopoly on carbon-free baseload positions it for sustained premium pricing. Key milestone: successful TMI Unit 1 restart in 2028 validates the model and de-risks future plant restarts. Main risk is valuation multiple contraction if no additional major deals materialize or AI hype cools. Suitable for aggressive growth portfolios; too expensive and execution-dependent for conservative value investors.
Bull Case
$350 (38% upside) - Additional hyperscale deals with Amazon/Google, successful TMI restart ahead of schedule, expanding government contracts
Base Case
$280 (10% upside) - TMI restart on schedule in 2028, one additional mid-sized hyperscale deal, steady government business
Bear Case
$190 (25% downside) - TMI restart delays or cost overruns, AI investment slowdown reduces data center buildout, no new major contracts

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