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Constellation Energy’s (CEG) venture arm has taken a stake in a reactor development company that is working around a gas-to-nuclear deployment model in coordination with GE Vernova (GEV). The transaction marks Constellation’s first equity investment in a U.S. nuclear developer focused on advanced small modular reactors (SMRs).

Key Takeaways Constellation Technology Ventures completed its first equity stake in a U.S. advanced SMR developer via Blue Energy. Blue Energy previously raised $380 million to develop multi-gigawatt gas-to-nuclear projects with GE Vernova. Financial advisors can access exposure to both Constellation Energy and GE Vernova through the Range Nuclear Renaissance ETF (NUKZ). Accelerating the Deployment of Small Modular Reactors (SMRs) Constellation’s venture arm has made a strategic equity investment in prefabricated nuclear power plant developer Blue Energy. As the operator behind the largest nuclear reactor fleet in the U.S., Constellation expects the deal to accelerate commercialization. According to a company statement, Constellation’s investment will help Blue Energy meet growing national power demands by making nuclear development predictable, rapidly scalable, and project-financeable. 

Furthermore, Constellation said the investment in Blue Energy reinforces its deployment plans for GE Vernova Hitachi’s small modular reactor (SMR), the BWRX-300. The technology provides a proven, scalable path toward next-generation nuclear infrastructure across domestic markets.

See more: Advanced Nuclear Power Projects: Commercial SMR Deals Boost NUKZ

Gas-to-Nuclear Infrastructure Gains Traction The deal follows significant momentum for Blue Energy earlier this year. The firm previously secured $380 million in capital and established a strategic alliance with GE Vernova to construct multi-gigawatt gas-to-nuclear projects. 

This energy generation deployment method has attracted strong interest. Power becomes available on-site almost immediately from gas turbines while SMRs are built in the background. Once the reactors are operational, the gas turbines are removed from the site and the load operates only on the clean nuclear power source.

Accessing Nuclear Supply Chains via NUKZ Investors tracking the sector can find direct exposure to these market leaders through nuclear ETFs. Both GE Vernova and Constellation Energy are holdings in the Range Nuclear Renaissance Index ETF (NUKZ). GE Vernova represents the fund’s second-largest position, accounting for 4.3% of total portfolio assets as of July 20. 

NUKZ tracks the VettaFi Nuclear Renaissance Index, which provides exposure to companies across the nuclear energy ecosystem, including hardware providers and fuel suppliers.

Looking for nuclear insights in your inbox? Subscribe here to keep a pulse on nuclear investing through our weekly research.

For more news, information, and analysis, visit the Nuclear Energy Content Hub.

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ, for which it receives an index licensing fee. However, NUKZ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NUKZ.

Nuclear energy demand is on the rise, driven by the massive power needs of artificial intelligence (AI) data centers. Because nuclear power possesses high power density and provides reliable, 24/7 baseload energy, it is increasingly becoming a top choice among major hyperscalers.

In the nuclear energy industry, innovative companies like NuScale Power (SMR -0.57%) have the potential to reimagine nuclear energy deployment with their small modular reactors. Meanwhile, established utilities such as Constellation Energy (CEG +4.66%), with their extensive nuclear fleet, stand ready to meet today's power challenges.

If you're looking to diversify your portfolio with nuclear energy stocks, there are a few key things you need to consider when considering an investment between NuScale Power and Constellation Energy right now.

Image source: Getty Images.

Next-generation data centers need nuclear power Modern data centers require massive amounts of energy. Training large language models requires running thousands of high-performance graphical processing units (GPUs) for months on end, while AI queries provide steady demand for AI-generated answers. The emergence of autonomous AI agents is another massive driver of non-stop loops that require continuous, reliable operation of AI data centers.

To meet growing AI demand, data center chips are packed into compact clusters that handle parallel computing across billions of variables. Because servers generate significant heat, they also require large liquid-cooling systems that consume substantial energy.

According to Goldman Sachs, U.S. data center power demand could spike to 66 GW and account for up to 8.5% of U.S. peak summer demand by 2027. Bank of America analysts forecast that over the next five years, data centers could add 125 GW of new U.S. electric load, representing a compound annual growth rate of electricity demand of 4.1%.

Hyperscalers like Alphabet, Amazon, Meta Platforms, and Microsoft need reliable energy while also meeting their long-term carbon-reduction goals. These data centers can't afford interruptions, which means intermittent wind and solar power need an extra boost, which is where nuclear energy comes into play.

Over the last couple of years, hyperscalers have invested in small modular reactors (SMRs) and nuclear plant restarts to meet these massive future energy demands.

NuScale's small modular reactors could change how nuclear energy is deployed NuScale Power is uniquely positioned in the SMR space, as it is the only company with a Standard Design Approval (SDA) from the Nuclear Regulatory Commission for its SMR technology. The company has an SDA for its 50-megawatt (MW) and 77 MW modules, giving it a crucial first-mover advantage in the advanced nuclear reactor space, where NRC approval can be a long and drawn-out process.

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The company has one approved project in Romania, where it will look to install 462 MWe using six modules at a former coal plant site. The company received a Final Investment Decision from shareholders and the Romanian government. As part of the deal, NuScale will install one 77 MW module to ensure it is functional, with the remaining five modules contingent on the module proving operational. Operations for this power plant are planned to start in 2033.

Beyond this, NuScale hopes to deploy a massive 6 GW of its power modules with the Tennessee Valley Authority (TVA). The company is working closely with ENTRA1 to secure a firm power purchase agreement and hopes to finalize a deal by the end of the year.

Constellation Energy operates the biggest nuclear energy fleet in the U.S. While NuScale is an up-and-coming nuclear energy company with a long timeline until its plants begin operations, Constellation Energy is an established utility company with a massive nuclear energy fleet. Constellation controls 22 GW of U.S. nuclear generation capacity and operates 21 commercial reactors at 12 locations.

Constellation has secured major deals over the past few years. In 2024, the company announced a 20-year power purchase agreement (PPA) with Microsoft, which involves the launch of the Crane Clean Energy Center and the restart of Three Mile Island Unit 1. The Crane Clean Energy Center will come online in 2028.

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In June of last year, Constellation signed a 20-year power purchase agreement with Meta Platforms to provide 1,121 MW of nuclear energy, beginning in June 2027. As part of this agreement, Constellation will relicense and expand its Clinton nuclear facility located in Illinois.

The company also continues to build on its massive energy platform. On July 16, Constellation's venture capital arm, Constellation Technology Ventures, invested in Blue Energy, which builds prefabricated modular nuclear power plant structures off-site and ships them to their final location. The company uses phased delivery, meaning it deploys gas turbines first, which will eventually transition to nuclear plants when reactor installations are completed.

Which stock is a better buy today? NuScale Power has a first-mover advantage with its NRC-approved SMRs. However, the company faces risks from the Department of Energy's Reactor Pilot Program, in which the DOE is leveraging its authority to reduce red tape and fast-track the testing and licensing of new reactor technologies by competitors.

For investors seeking explosive upside potential, NuScale could be an appealing buy, but it also carries massive risk, as it needs to secure additional contracts and prove it can successfully deploy and commercialize its SMR technology over the coming decade.

In contrast, Constellation Energy has an established fleet of nuclear capacity and is well positioned to benefit from booming energy demand in the near term, making it the better stock for investors looking to gain exposure to the growing nuclear energy industry right now.

Key Takeaways Constellation Energy operates a 55-GW fleet spanning nuclear, gas, geothermal, hydro, wind and solar. CEG plans nearly 10 GW of new capacity and will restart the 835-MW Crane plant for Microsoft's AI demand. CEG plans $5.7B in 2026 and $4.7B in 2027 capex to upgrade plants and support earnings growth. Constellation Energy (CEG - Free Report) benefits from its diversified power generation fleets, which enable it to deliver reliable electricity under changing market conditions. Its balanced generation mix supports the clean energy transition and meets rising electricity demand.

Following its acquisition of Calpine, CEG operates a diversified 55-gigawatt (GW) generation fleet spanning nuclear, natural gas, oil, geothermal, hydro, wind and solar, enough to power approximately 27 million homes. It produces nearly 10% of the nation's clean electricity, plans nearly 10 GW of new capacity and will restart the 835-megawatt (MW) Crane plant, supporting Microsoft's AI-driven demand and long-term growth.

The company is also expanding its generation portfolio to capture growing power demand. CEG’s Calpine unit completed a 25-MW expansion at The Geysers geothermal facility, strengthening its clean energy generation portfolio. It completed the 105-MW Pastoria Solar Project and the 460-MW Pin Oak Creek Energy Center, increasing its renewable and natural gas generation capacity. The company has also submitted nearly 5,000 MW of new nuclear uprates, natural gas and battery storage projects into PJM's interconnection queue, positioning it to benefit from increasing data center electricity demand.

The company plans capital expenditures of $5.7 billion in 2026 and $4.7 billion in 2027 to upgrade plants, extend asset life and support long-term earnings growth. Overall, CEG's diversified generation fleet and expansion projects support long-term earnings growth by meeting rising clean electricity demand.

Utilities Benefit From Diverse Power Generation PortfolioAn integrated energy portfolio combining renewable energy, natural gas, nuclear and energy storage helps diversify revenues, improve reliability and reduce fuel-price risks. It also enables companies to meet growing electricity demand and support long-term earnings growth.

NRG Energy (NRG - Free Report) operates a diversified 25 GW generation portfolio of natural gas, coal and renewable assets. Its integrated fleet enhances operational flexibility and supports growing electricity demand.

Vistra Corp. (VST - Free Report) operates a diversified portfolio of nearly 44 GW of generation assets, including natural gas, coal, nuclear, solar and battery energy storage. Its balanced fleet provides operational flexibility and supports rising electricity demand.

The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 25.03% and 16.02%, respectively, year over year.

Image Source: Zacks Investment Research

CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12-month ROE is 16.81%, ahead of the industry average of 7.15%.

Image Source: Zacks Investment Research

CEG’s Stock Price PerformanceIn the past month, the company’s shares have plunged 6% compared with the industry’s 12.1% fall.

Image Source: Zacks Investment Research

CEG’s Zacks Rank

Nuclear plants. Shipyards. Robots. Oil and gas.

Trying to connect the dots? You and I may not be able to, but Constellation Energy (CEG +0.25%) is doing just that with its latest power move.

Constellation, the largest nuclear energy company in the U.S., has invested an undisclosed sum in Blue Energy, a start-up specializing in prefabricated nuclear power plants. The real kicker isn’t the tech – how this newcomer builds those plants is where the disruption lies, and exactly why Constellation decided it’s worth the bet.

Image source: Getty Images.

Playing the nuclear energy boomConstellation Energy is the undisputed clean energy leader in the U.S., operating the nation’s largest nuclear fleet. That dominance has thrown the company straight into the spotlight of the artificial intelligence (AI) infrastructure boom.

Data centers consume staggering amounts of electricity, and they require uninterrupted, 24/7 power to keep their servers and cooling systems running. While solar and wind are intermittent, nuclear isn’t.

The macro tailwinds are stronger than ever, with the U.S. government planning to quadruple domestic nuclear capacity by 2050. The problem is execution. Building a traditional nuclear reactor can easily take over a decade and tens of billions of dollars.

Blue Energy directly tackles the industry's two biggest bottlenecks: speed and financing. Their solution? Shipyards.

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Why CEG thinks a shipyard can fit the nuclear equationThe biggest budget-killer in a nuclear power plant isn’t the reactor itself. It is the buildings, structures, pipes, and cooling systems that can cause the maximum delays and cost overruns.

Shipyards already have mass assembly-line manufacturing processes in place. They also have the indoor, weather-controlled spaces, high-capacity cranes, and automated robotic set-ups designed for steel ships and offshore oil rigs.

Blue Energy plugs its design right into this existing infrastructure to weld and prefabricate nuclear plants at speed, and then transports them to the installation site on barges. It can get a plant up and running in just three years.

To top that, while traditional nuclear relies on government loan guarantees, Blue Energy can monetize the asset quickly. It can start a plant on natural gas within three years and generate revenue while it finishes installation and approvals.

Blue Energy’s proprietary plant design can house regulatory-approved Light Water Reactors (LWRs), such as GE Vernova (GEV +2.09%)-Hitachi BWRX-300 SMR (small modular reactor). Blue Energy and GE Vernova are already collaborating to build a power plant using BWRX-300 at Blue Energy’s first planned site in Texas, with GE Vernova scheduled to deliver two gas turbines by 2029 to kickstart the plant.

Why this matters for Constellation Energy investorsThis isn't a speculative bet. Constellation has signed monumental, long-term power purchase agreements, including 20-year deals with Meta (META 2.79%) and Microsoft (MSFT 1.67%) each. Demand is so high that Constellation expects to generate $11.5 billion and $13 billion in free cash flow (before growth spending ) in 2028 and 2029 versus $8.4 billion in 2026-2027.

Constellation can’t bank on traditional nuclear reactors to deliver new baseload capacity, and is trying to position itself at the front of the line for the first wave of rapidly deployable, bankable SMR tech.

If Blue Energy’s shipyard model delivers on its three-year timeline, Constellation could secure a repeatable blueprint to capture the surging hyperscale demand long before traditional nuclear competitors can even break ground.

In the latest trading session, Constellation Energy Corporation (CEG - Free Report) closed at $251.77, marking a -2.46% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.

Heading into today, shares of the company had lost 3.39% over the past month, lagging the Oils-Energy sector's gain of 0.92% and the S&P 500's gain of 0.53%.

Market participants will be closely following the financial results of Constellation Energy Corporation in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be $2.24, reflecting a 17.28% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.51 billion, indicating a 23.16% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.74 per share and a revenue of $35.48 billion, indicating changes of +25.03% and +38.95%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Constellation Energy Corporation. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Currently, Constellation Energy Corporation is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Constellation Energy Corporation is presently being traded at a Forward P/E ratio of 21.99. Its industry sports an average Forward P/E of 18.03, so one might conclude that Constellation Energy Corporation is trading at a premium comparatively.

Investors should also note that CEG has a PEG ratio of 1.01 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

AI is all about speed, specifically the speed of parallel computing power enabled by GPUs.

However fast a GPU is, however much computing power a cluster can deliver, there are numerous bottlenecks that hinder AI performance. A single GPU may be fast, but the system only runs as fast as its connections, and there are exponentially more connections as you move up the chain, each with more networking, power, and cooling requirements. Together, those constraints create a lucrative infrastructure market with numerous niches to fill.

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Arista Networks: Leader in Hyperscale Ethernet FabricsArista Networks Today

$181.17 -5.79 (-3.10%)

As of 07/13/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$104.68▼

$189.82P/E Ratio62.04

Price Target$188.16

Arista Networks NYSE: ANET supplies the switching and networking architecture that allows AI clusters to move data efficiently as they scale.

The company’s optical interconnects are critical for speed, but the Ethernet fabrics truly matter.

Ethernet fabrics are complex, smart-routing systems absolutely critical for advanced computing. They act as the AI nervous system, routing signals efficiently, with low latency and high bandwidth, enabling ultra-efficient hardware usage, which is critical for scaling.

Arista Networks is a leading hyperscale Ethernet supplier due to its positioning. Hyperscalers have spent years and billions of dollars building systems that utilize ANET products, specifically its moat-enabling software stack; switching now will cost them billions in additional capital and lost momentum. As it stands, ANET is well-positioned as industry standards favor it for superior scalability.

Analysts rate this stock a consensus Buy, and price target trends are driving the market higher, pushing it to new highs as of mid-July.

Vertiv: The Cool Leader in a Smoking Hot MarketVertiv Today

$305.73 -13.13 (-4.12%)

As of 07/13/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$118.70▼

$379.93Dividend Yield0.08%

P/E Ratio76.82

Price Target$342.24

Heat is a major constraint for AI, posing more than just a performance threat. Overheating literally kills AI by throttling performance, triggering shutdowns, and damaging data-center equipment.

Vertiv NYSE: VRT sits at the center of this challenge, combining power management, distribution, and full-stack liquid cooling to keep high-density data centers operating safely and reliably.

The company's co-development with GPU and infrastructure providers like NVIDIA, full-service/full-stack capability, maintenance services, and scalability give Vertiv a strong competitive position.

Vertiv is a global leader in data-center power distribution and thermal management. Its backlog has swelled to $15 billion, providing immense visibility into its future, and it is profitable.

The stock has a consensus Moderate Buy rating, with 23 of the 28 analysts covering it assigning it a Buy or Strong Buy. The data shows a bullish bias, with the consenus price target implying more than 12% upside from current levels. Some price targets are even pointing toward the $500 range, well above existing highs.

Astera Labs: Boosting the Integrity of AI Across Data Center EnvironmentsAstera Labs Today

$362.05 -50.92 (-12.33%)

As of 07/13/2026 04:00 PM Eastern

52-Week Range$88.18▼

$499.48P/E Ratio244.63

Price Target$275.75

Astera Labs NASDAQ: ALAB accelerates data movement across AI systems with retimers that restore signal integrity over longer distances and switches that manage high-speed connections.

The combination of specialized hardware and software entrenches the company within hyperscaler networks, creating a significant moat.

As it stands, the company holds an estimated 90% of the retimer market, boasts more than 70% gross margins, and is accelerating design wins.

Unlike other hardware providers, ALAB products are critical scale-up connections within servers and are included in generational manufacturing designs.

Analysts rate Astera Labs a consensus Moderate Buy, and price target revisions in the $450-$460 range imply approximately a 20% upside from where the stock is currently trading.

Corning: Enables Light Speed Data TransfersCorning Today

$183.14 -7.75 (-4.06%)

As of 07/13/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$51.32▼

$271.78Dividend Yield0.61%

P/E Ratio87.63

Price Target$194.69

Corning NYSE: GLW provides the fiber-optic backbone for AI infrastructure, using proprietary glass technologies and manufacturing scale to support fast, reliable data transmission between servers, racks, and data centers.

Performance drivers today include scale-out dynamics, such as server-to-server and rack-to-rack connections, and long-term drivers include moves into co-packaged optics and photonics. Those will take fiber optics into the very heart of GPUs, enabling even faster speeds.

Corning’s moat is built on its IP, customer relationships, and multiyear supply agreements, which provide long-term visibility for investors.

The 16 analysts who cover Conring have given it a consensus Moderate Buy rating, with the highest price target revision coming in at $270.

Constellation Energy Is the Heartbeat of AIConstellation Energy Today

CEG

Constellation Energy

$257.57 +6.19 (+2.46%)

As of 07/13/2026 04:00 PM Eastern

52-Week Range$228.63▼

$412.70Dividend Yield0.66%

P/E Ratio22.38

Price Target$368.32

If AI is Frankenstein’s monster, waiting for the jolt of electricity to power it up, then Constellation Energy NASDAQ: CEG is the heartbeat.

Following its acquisition of Calpine, Constellation is the world’s largest private-sector power producer and sells electricity and related energy products to wholesale and retail customers

The company supplies the around-the-clock generation to make large data centers work. Constellation is absolutely critical to AI because local power grids are insufficient to meet AI's load.

The company has numerous agreements across the hyperscale and enterprise AI universe (such as with Microsoft NASDAQ: MSFT and Meta Platforms (NASDAQ: META)) for power supply and co-located power generation.

Projects include the restarting of mothballed nuclear facilities and billions in new project proposals.

The 23 analysts who cover Constellation Energy have given the stock a consensus Moderate Buy rating, with more than 40% potential upside at the consensus price target.

The trend is bullish, suggesting a move to the high-end target of $462 is possible, which would nearly double the upside potential.

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The U.S. nuclear sector is moving beyond discussions about preserving existing reactor capacity. Holtec International (private) recently announced that the restart of a shutdown reactor in Michigan at the Palisades site has reached a “watershed moment,” with major project work closed out and the site transitioning into remaining maintenance, testing, inspections, and operational readiness activities required before startup.

Key Takeaways Holtec’s Palisades restart has moved from major project work into the final stage of activity before startup. Reactor restarts and life extensions are becoming a practical way to add or preserve large volumes of firm, carbon-free power without waiting for new reactor construction. Exposure to utilities and nuclear service providers positions investors to benefit as existing reactor assets become more valuable. This marks an important step for the first attempted restart of a U.S. nuclear plant that had already entered the decommissioning process. The project provides an important proof point for a broader investment theme. Existing nuclear assets are becoming increasingly valuable as utilities, large power customers, and policymakers look for reliable, carbon-free electricity.

That theme directly connects to several public companies tied to the VettaFi Nuclear Renaissance Index (NUKZX), including Constellation Energy (CEG) and PG&E (PCG), along with the broader restart activity developing around NextEra Energy’s (NEE) Duane Arnold project.

Palisades Moves Toward Restart The single, 805-megawatt (MW) boiling water reactor (BWR) at Palisades originally ceased operations in May 2022 after more than 40 years of commercial service. The plant then entered the decommissioning process, before Holtec pursued the unprecedented step of returning the facility to operating status. It is a first-of-a-kind attempt to restart a shuttered nuclear plant.

Holtec’s latest update indicates that the large-scale restart work has largely been completed. The remaining effort now centers on routine maintenance, equipment testing, inspections, and operational readiness. The Palisades BWR has nearly completed the first-ever turnaround from decommissioning to operations.

The restart is also symbolically important, as its success would show that other retired nuclear plants can be returned to service. Under the right mix of economics, regulatory support, technical readiness, and customer demand, restarts would be proven possible.

Public Utilities Are Pursuing Similar Opportunities Constellation Energy (CEG) provides the clearest public-market comparison. The company is working to restart a pressurized water reactor (PWR) in Pennsylvania at the Crane Clean Energy Center. Constellation announced a 20-year power purchase agreement with Microsoft Corp (MSFT) to support the project, which could bring the plant online by 2027.

See more: NUKZ Holding Constellation Injects Millions Into Local Economies

The Crane restart shows how large technology customers can help make nuclear restart projects financeable. Microsoft needs reliable clean power to support its growing electricity demand. Constellation owns a retired nuclear asset with an established operating record. The result is a structure that links data center growth directly to existing nuclear infrastructure.

NextEra Energy (NEE) is pursuing a similar strategy with the Duane Arnold Energy Center in Iowa. The plant shut down in 2020, but NextEra and Google (GOOG) have announced a 25-year agreement tied to restarting the facility. Duane Arnold’s return is expected in 2029 to provide more than 600 MW of nuclear energy to support cloud and AI infrastructure.

PG&E’s (PCG) Diablo Canyon is slightly different because the plant never shut down. Still, it belongs in the same broader category of preserving existing nuclear capacity. Diablo Canyon had been scheduled for retirement, but California moved to keep the plant operating through 2030. The NRC has approved renewed operating licenses that could allow the units to run into the 2040s if California lawmakers authorize operation beyond 2030.

Together, these projects show that the nuclear opportunity is not limited to new construction. The U.S. is also trying to preserve, extend, and recover nuclear capacity that already exists.

Implications for Investors and the Nuclear Value Chain Reactor restarts create a different investment profile than new reactor development. They are not pre-revenue technology bets in the same way as some advanced reactor companies. They are infrastructure recovery projects tied to existing assets, experienced operators, and large power customers.

NUKZX includes utilities, such as Constellation Energy and PG&E, tied to the broader theme of recovering or preserving nuclear generation. NUKZX serves as the underlying index for the Range Nuclear Renaissance Index ETF (NUKZ).

The nuclear renaissance will likely unfold across multiple timelines. Advanced reactor developers may offer long-term upside, but existing reactor assets can create nearer-term opportunities. Restarts and life extensions can support electricity demand, provide revenue visibility through power purchase agreements, and increase the value of experienced nuclear operators.

The broader value chain also benefits. Restarting a nuclear plant requires engineering work, inspections, component replacements, instrumentation, maintenance, licensing support, and operational services. These activities can create opportunities for established public companies long before any new reactor reaches commercial operation.

NUKZX offers diversified exposure to this theme by combining utilities, construction and services firms, component suppliers, and fuel-related companies across the nuclear value chain. 

Related Research: DOE’s $17.5B Loan Boosts Nuclear Supply Chain

Critical Momentum: The Nuclear Renaissance Heats Up

Microreactors Reach Milestones & Retailers Go Nuclear

Looking for nuclear insights in your inbox? Subscribe here to keep a pulse on nuclear investing through our weekly research.

For more news, information, and analysis, visit the Nuclear Energy Content Hub.

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ, for which it receives an index licensing fee. However, NUKZ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NUKZ.

The world is increasingly shifting to cleaner forms of energy. The best example is the ongoing shift toward electric vehicles. However, as that trend continues, there's also new demand for electricity from other sources, notably artificial intelligence (AI). The world is at an electricity inflection point.

Between 2005 and 2025, electricity demand increased 10%. Between 2025 and 2045, demand is projected to rise by 60%. Huge capital investments will be needed, but not all of it will go toward solar and wind, which are intermittent energy sources. Nuclear power, which provides clean, always-on, baseload power, is likely to see a renaissance, as well. Here are three ways to play the increasing demand for nuclear power.

Image source: Getty Images.

Constellation Energy is a nuclear giant Constellation Energy (CEG +0.26%) is an independent power producer, which means it sells electricity directly to its customers at market rates. It differs from a regulated utility, which must have its rates approved by the government. Rising electricity demand could give Constellation the upper hand when it signs contracts.

That said, Constellation is one of the largest nuclear power producers in the country. It also owns natural gas utilities and clean energy assets. So you aren't exactly going all in on nuclear power, but you are getting material exposure to the sector. Notably, the company is already working with tech leaders like Meta (META +6.16%) to help support the artificial intelligence build-out.

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The stock has pulled back after a big rally, falling roughly 40% from its 2025 all-time high. While it is far from cheap, the price-to-earnings ratio is a far more reasonable 20x, down from the nearly 50x it stood at as 2025 drew to a close. For a long-term investor, Constellation Energy could be a good way to get broad exposure to the increasing demand for nuclear power.

Go all-in with nuclear start-up NuScale Power If you'd rather swing for the fences, you'll probably find NuScale Power (SMR +0.44%) more to your liking. It is a start-up looking to build a business around small modular nuclear reactors (SMRs). This is an exciting technology that could transform the way the world uses nuclear power. SMRs are factory-built, easily transportable, and are expected to be small and safe enough to be placed near population centers. In other words, they could provide dedicated power to an AI data center. Conversely, they could also be strung together to provide utility-scale power.

There's just one problem. NuScale Power is still losing money, and its technology, while having earned important regulatory approvals, has yet to be deployed commercially. It is working on its first sale, but there are no firm agreements yet. Until it has built an SMR and that SMR has successfully operated, there's no way to know if NuScale can execute on its big plans. Notably, it will likely lose money for several more years as it builds out its business, even if it is successful.

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This is a high-risk stock that only the most aggressive investors should consider. But, if that's the type of investor you are, buying today could get you in on the ground floor of a company that could change the nuclear power industry as we know it.

Brookfield Renewable is a safe, income-oriented nuclear play The big draw with Brookfield Renewable Partners (BEP 1.97%) is its attractive 4.6% distribution yield. The distribution has been increased at an annualized rate of 5% over the past decade. It owns 50% of Westinghouse, one of the nuclear power industry's largest service providers. It's a picks-and-shovels play, but one that even the most conservative investors should feel comfortable owning.

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Part of the appeal is the business's diversification. It has operations in North America, South America, Europe, and Asia. In addition to nuclear power services, it also operates solar, wind, hydroelectric, and storage assets. It is, basically, a one-stop shop for clean energy investors. And, like Constellation Energy, it already has deals with big AI players, including Microsoft (MSFT +0.15%) and Google. The key takeaway here is that nuclear power doesn't have to be a high-risk investment.

Three ways to play the nuclear power boom If you want direct exposure to nuclear power and to leverage yourself to rising electricity demand, you'll probably find Constellation Energy attractive. If you are a risk taker, nuclear power start-up NuScale Power lets you buy into a technology that could revolutionize the nuclear power industry. And for income investors or those who like to avoid risk, Brookfield Renewable's Westinghouse investment is likely to generate attractive cash flows for years to come, as nuclear power gains traction as a reliable base-load power source.

CEG's cheaper valuation, lower debt use and improving earnings outlook may offer a favorable entry point despite recent share price weakness.

Constellation Energy Corporation (CEG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned -1.9% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Alternative Energy - Other industry, to which Constellation Energy Corporation belongs, has gained 1.8% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Constellation Energy Corporation is expected to post earnings of $2.24 per share for the current quarter, representing a year-over-year change of +17.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

For the current fiscal year, the consensus earnings estimate of $11.74 points to a change of +25% from the prior year. Over the last 30 days, this estimate has changed +0.1%.

For the next fiscal year, the consensus earnings estimate of $13.62 indicates a change of +16% from what Constellation Energy Corporation is expected to report a year ago. Over the past month, the estimate has changed -0.6%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Constellation Energy Corporation is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Constellation Energy Corporation, the consensus sales estimate of $7.51 billion for the current quarter points to a year-over-year change of +23.2%. The $35.48 billion and $35.2 billion estimates for the current and next fiscal years indicate changes of +39% and -0.8%, respectively.

Last Reported Results and Surprise HistoryConstellation Energy Corporation reported revenues of $11.12 billion in the last reported quarter, representing a year-over-year change of +63.8%. EPS of $2.74 for the same period compares with $2.14 a year ago.

Compared to the Zacks Consensus Estimate of $8.21 billion, the reported revenues represent a surprise of +35.5%. The EPS surprise was +7.03%.

Over the last four quarters, Constellation Energy Corporation surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Constellation Energy Corporation is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Constellation Energy Corporation. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Key Takeaways CEG benefits as AI-driven data centers boost demand for reliable, around-the-clock clean electricity.CEG signed clean-energy deals with Walmart, Microsoft and CyrusOne to support long-term growth. CEG expects base earnings to grow over 20% yearly through 2029 on contracts and data center demand. Constellation Energy Corporation (CEG - Free Report) benefits from the rapid growth in clean electricity demand driven by artificial intelligence, which requires large amounts of reliable, around-the-clock power. CEG's nuclear fleet delivers reliable, carbon-free power, supporting rising electricity demand.

The company is strengthening its long-term growth by securing large clean-energy supply contracts with leading technology and commercial customers. It recently signed a 15-year power purchase agreement (PPA) with Walmart for 176 megawatts (MW) of carbon-free electricity from the Dresden Clean Energy Center and a 20-year agreement with Microsoft linked to the restart of the Crane Clean Energy Center. Constellation Energy also signed a 380 MW agreement with CyrusOne in Texas, with an option to expand by another 380 MW. These developments strengthen the company's position to benefit from AI-driven electricity demand over the coming years.

To meet rising demand, Constellation Energy has submitted nearly 5,000 MW of new generation projects, including nuclear uprates, natural gas plants and battery storage. The acquisition of Calpine also strengthens the company's ability to supply reliable electricity by adding a large fleet of flexible natural gas power plants.

CEG expects base earnings to grow by more than 20% annually through 2029. This outlook is supported by long-term customer contracts, nuclear energy production tax credits, growing free cash flow and increasing demand from hyperscale data centers.

AI Data Centers Demand Creates New Opportunity for UtilitiesAccording to the International Energy Agency, AI-driven data centers are boosting demand for reliable electricity. This is driving investments in grids, transmission, renewables and energy storage, creating long-term growth opportunities for utilities and power producers.

Vistra (VST - Free Report) signed 20-year PPAs with Meta for 2,600 MW of zero-carbon nuclear power, securing stable long-term revenues, supporting capacity expansion and strengthening its position to benefit from rising AI-driven data center electricity demand.

AES Corporation (AES - Free Report) expanded its Google partnership by signing 20-year PPAs to supply co-located power for a Texas data center, strengthening long-term revenue visibility and AI-driven growth.

CEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 25.03% and 16.02%, respectively, year over year.

Image Source: Zacks Investment Research

CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12-month ROE is 16.81%, ahead of the industry average of 7.15%.

Image Source: Zacks Investment Research

CEG’s Stock Price PerformanceIn the past month, the company’s shares have plunged 4.6% against the industry’s 0.2% growth.

Image Source: Zacks Investment Research

CEG’s Zacks Rank

Starting the second half of 2026 on a bearish note, shares of Constellation Energy (CEG 6.16%) are falling today. After learning of a firm's lowered expectations for Constellation stock, investors have found sufficient cause to press the sell button on the energy company's shares.

As of 1:32 p.m. ET, shares of Constellation are down 6.2%, paring back an earlier decline of 7.9%.

Image source: Getty Images.

There's less room for this nuclear stock to power higher Maintaining a neutral rating, Citigroup slashed its price target on Constellation stock to $297 from $348. According to Thefly.com, Citigroup revised its price target after updating its model for the company.

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Based on yesterday's closing price of $248.37, the new price target implies upside of 19.6%.

Citigroup's reduced price target is even more noteworthy, juxtaposed with the bullish outlook of other firms. Last week, for example, Morgan Stanley hiked its price target on Constellation stock to $364 from $359.

Today's drop provides a great buying opportunity Unsurprisingly, shares of Constellation are selling off today with Citigroup's lowered expectations. Savvy investors, however, recognize that times like these offer great buying opportunities. Nothing has fundamentally changed for Constellation, a nuclear energy producer that's helping power much-needed data centers.

For investors seeking nuclear energy exposure from an established company that's consistently profitable -- rather than next-generation nuclear reactor developers -- Constellation stock is a smart consideration.

Citigroup is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy. The Motley Fool has a disclosure policy.

DUK edges CEG on earnings estimates, dividend yield, capital plans, valuation and six-month share gains as clean power demand rises.

In the latest close session, Constellation Energy Corporation (CEG - Free Report) was down 1.74% at $264.02. The stock's change was less than the S&P 500's daily loss of 0.05%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.24%.

Prior to today's trading, shares of the company had lost 6.15% was narrower than the Oils-Energy sector's loss of 8.57% and lagged the S&P 500's loss of 1.42%.

Investors will be eagerly watching for the performance of Constellation Energy Corporation in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.24, indicating a 17.28% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.07 billion, reflecting a 48.62% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.74 per share and a revenue of $40.04 billion, representing changes of +25.03% and +56.8%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Constellation Energy Corporation. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.38% higher. Constellation Energy Corporation currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Constellation Energy Corporation is presently trading at a Forward P/E ratio of 22.89. This indicates a premium in contrast to its industry's Forward P/E of 18.23.

It is also worth noting that CEG currently has a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices.

The Alternative Energy - Other industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 43% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

ONTARIO, N.Y.--(BUSINESS WIRE)--Constellation has filed license renewal applications to extend the operations of Ginna Clean Energy Center and Nine Mile Point Unit 1 to 2049.

The surge in power demand from artificial intelligence and data centers has put the energy sector in the spotlight. Investors are now deciding between Constellation Energy (CEG +0.16%) and GE Vernova (GEV +2.30%) for their portfolios.

Constellation Energy focuses on clean power generation through its massive nuclear fleet, while GE Vernova provides the essential turbines and grid technology needed to distribute power globally. Both companies play vital roles in modernizing energy infrastructure, making them favorites among investors interested in electric utility stocks and carbon-free generation.

Constellation Energy operates as the largest producer of carbon-free energy in the United States, primarily through its extensive nuclear fleet. The company serves roughly 2.5 million customer accounts, including 75% of the Fortune 100 companies. Major agreements include a 20-year power purchase agreement with Microsoft (MSFT 3.66%) to restart the Crane Clean Energy Center and a deal with Meta Platforms (META 2.66%) for the Clinton plant.

In FY 2025, revenue reached nearly $25.5 billion, representing an 8.3% increase over the previous year. The company reported a net income of approximately $2.3 billion for the period. While revenue grew, the net margin, which measures how much profit a company keeps for every dollar of sales, fell to nearly 9.1% from roughly 15.9% in FY 2024.

As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.6x, which compares total d

ebt to shareholder equity. The current ratio, which measures the ability to cover short-term debts with current assets, is approximately 1.5x. Free cash flow, calculated as operating cash flow minus capital expenditures, was nearly $1.3 billion for the year.

The case for GE VernovaGE Vernova provides the essential hardware and software for the global power grid, including an installed base of over 7,000 gas turbines and 59,000 wind turbines. The company sells to global utilities, governments, and large industrial users such as Amazon (AMZN 3.38%). Recent strategic moves include acquiring the remaining 50% stake in Prolec GE and purchasing Robotech Automation to enhance grid automation capabilities.

For FY 2025, the company generated close to $38.1 billion in revenue, reflecting growth of roughly 8.9%. Net income for the year was approximately $4.9 billion, a substantial improvement over previous periods. The net margin finished at nearly 12.8%, up from a net loss just two years prior.

On the December 2025 balance sheet, the debt-to-equity ratio is 0.0x, indicating the company has no total debt relative to its shareholder equity. The current ratio is approximately 1.0x, which measures the ability to cover short-term liabilities with current assets. Free cash flow for the year was strong at nearly $3.7 billion, providing capital for further expansion.

Risk profile comparisonConstellation Energy faces significant integration risks following its acquisition of Calpine, which added 23 gigawatts of capacity to its fleet. The company must also manage volatile wholesale market prices that can cause earnings to fluctuate. Additionally, its nuclear operations require ongoing license extensions from the Nuclear Regulatory Commission and continued federal support to remain financially viable.

GE Vernova deals with the complexities of long-cycle fixed-price contracts, where inflationary pressures can lead to cost overruns and lower profitability. The business is also exposed to supply chain disruptions for critical materials, often involving geopolitical tensions. Furthermore, the company faces competition from global giants like Siemens Energy and Mitsubishi Heavy Industries while navigating complex international trade regulations.

Valuation comparisonConstellation Energy appears more attractively valued based on its Forward P/E, which compares the stock price to future earnings estimates, while its P/S ratio is also lower.

MetricConstellation EnergyGE VernovaSector BenchmarkForward P/E23.4x38.1x20.6xP/S ratio3.9x7.8xSector benchmark uses the SPDR XLU sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?While both companies benefit from AI and data centers due to their massive electricity demands, they have different business models. They offer exposure to different segments of the energy industry, and investors’ choice between the two depends upon their own goals and risk tolerance.

Constellation Energy is the largest producer of carbon-free nuclear energy in the U.S. It has long-term agreements with major tech companies to provide power for their operation and should benefit from that growing demand. The company is seeing strong cash flow and pays a regular dividend, making it appealing to investors who prefer a more defensive approach.

By contrast, GE Vernova is positioning itself to capitalize on this growing energy demand differently. Rather than producing energy, it manufactures the equipment used to generate energy, such as gas turbines and wind turbines, as well as the infrastructure for the energy grid. Utilities around the world are upgrading aging electrical grids to handle the increased energy demands tech requires. The drawback is that the company’s stock has a high valuation that already reflects that optimism.

So, neither company is a bad investment, since both should benefit from rising electricity demand. It comes down to whether you prefer investing conservatively and sticking with the steady cash flow and dividends Constellation offers or are willing to accept the risk of a richer valuation in exchange for long-term growth.

Key Takeaways CEG's clean-energy platform is anchored by nuclear power, with renewables and gas supporting growth. Calpine added gas and geothermal assets, plus solar and geothermal projects, boosting capacity.CEG plans $5.7B in 2026 capex to support fuel inventory, uprates and plant upgrades. Constellation Energy Corporation (CEG - Free Report) presently operates an integrated clean-energy platform anchored by zero-carbon nuclear generation, supported by a large fleet of flexible natural gas-fired plants and renewable energy assets. At the end of 2025, CEG's generation portfolio totaled 31,676 megawatts (MW). Currently, nearly 85% of its generation comes from nuclear energy.

Although the company relies heavily on nuclear energy and natural gas to produce clean electricity for its customers, CEG is steadily expanding its renewable generation capacity, further strengthening its clean-energy portfolio. CEG’s strategic investments in solar, wind, geothermal and battery storage projects position it to meet growing carbon-free electricity demands from data centers and commercial customers. Renewable expansion advances decarbonization efforts and positions CEG to capitalize on favorable tax incentives and accelerating electrification trends.

At the end of 2025, CEG's generation consisted of roughly 2,561 MW of renewable capacity. The Calpine acquisition, completed in January 2026, was significant as it added efficient natural gas and geothermal facilities to its generation portfolio, strengthening its generation mix and expanding its clean electricity generation platform.

Calpine, a wholly owned subsidiary of Constellation Energy, completed the 105-MW Pastoria Solar Project, which will assist in decarbonizing the State Water Project. Recently, Calpine expanded the power-generating capacity of The Geysers Geothermal Complex by 25 MW, capable of powering more than 25,000 homes across California. This enhances grid reliability, supports rising electricity demand across California and creates opportunities for long-term revenue growth.

CEG expects capital expenditures of approximately $5.7 billion in 2026 and $4.7 billion in 2027, supporting nuclear fuel inventory buildup and growth investments in uprates, license renewals and plant upgrades.

Renewable energy also offers significant economic benefits, as resources such as wind, solar and geothermal are not exposed to volatile fuel prices. Technological progress in recent years has driven cost efficiencies, supported revenue growth and strengthened the company's competitive position.

Clean Fuel Focus: Companies Benefit From the TransitionA clear transition is evident in the utility space and the operators are gradually shifting toward clean energy resources to produce electricity. Courtesy of its technological developments, utility-scale renewable plants are becoming cost-effective and are providing support to the grid.

NextEra Energy, Inc. (NEE - Free Report) plans to expand its renewable generation portfolio by approximately 76.6-107.6 gigawatt (GW) through 2032 and currently maintains a development backlog of more than 33 GW. Of the expected additions, solar, wind and gas projects are expected to add 31.5-41.5 GW, 8.5-14.5 GW and 4-8 GW, respectively.

The Southern Company (SO - Free Report) plans to expand its renewable generation portfolio by approximately 20,000 MW by mid-2030 and expects to invest $1 billion in renewable generation in 2030.

CEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 24.92% and 16.62%, respectively, year over year.

Image Source: Zacks Investment Research

CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12 months ROE is 16.81%, ahead of the industry average of 7.08%.

Image Source: Zacks Investment Research

CEG’s Stock Price PerformanceIn the past month, the company’s shares have plunged 7.1% compared with the industry’s 0.6% decline.

Image Source: Zacks Investment Research

CEG’s Zacks Rank

Constellation Energy Corporation (CEG - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned -6.3%, compared to the Zacks S&P 500 composite's +0.1% change. During this period, the Zacks Alternative Energy - Other industry, which Constellation Energy Corporation falls in, has gained 0.8%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Constellation Energy Corporation is expected to post earnings of $2.30 per share for the current quarter, representing a year-over-year change of +20.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.

The consensus earnings estimate of $11.73 for the current fiscal year indicates a year-over-year change of +24.9%. This estimate has changed +0.3% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $13.68 indicates a change of +16.6% from what Constellation Energy Corporation is expected to report a year ago. Over the past month, the estimate has changed -0.4%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Constellation Energy Corporation is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Constellation Energy Corporation, the consensus sales estimate of $9.07 billion for the current quarter points to a year-over-year change of +48.6%. The $40.04 billion and $35.28 billion estimates for the current and next fiscal years indicate changes of +56.8% and -11.9%, respectively.

Last Reported Results and Surprise HistoryConstellation Energy Corporation reported revenues of $11.12 billion in the last reported quarter, representing a year-over-year change of +63.8%. EPS of $2.74 for the same period compares with $2.14 a year ago.

Compared to the Zacks Consensus Estimate of $8.21 billion, the reported revenues represent a surprise of +35.5%. The EPS surprise was +7.03%.

Over the last four quarters, Constellation Energy Corporation surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Constellation Energy Corporation is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Constellation Energy Corporation. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

© knowlesgallery / iStock via Getty Images

Constellation Energy (NASDAQ:CEG | CEG Price Prediction) is a stock worth owning for decades because it operates the largest fleet of irreplaceable baseload nuclear assets in a country that has barely built any new nuclear capacity in a generation, and the customers paying to lock in that power for the next 20 years are the most cash-rich companies on earth.

I have been following the U.S. nuclear story for years, and the central fact has not changed: between 2016 and 2023, no new American reactor came online, and only Vogtle Units 3 and 4 have since. That construction drought is the moat. You cannot will a reactor into existence on a 12-month timeline, which means the fleet Constellation already owns is closer to a toll bridge than a commodity producer.

Pillar 1: Durability That Compounds Quietly Constellation runs the nation’s largest nuclear fleet at a 94.7% capacity factor for full-year 2025, with the NRC granting 20-year license extensions for Clinton through 2047 and Dresden through 2049/2051. Post-Calpine, the company controls 55 GW of combined capacity. The nuclear production tax credit provides a legislated revenue floor of up to $15.00/MWh with inflation adjustment. These plants throw off near-zero marginal-cost electricity from assets that cannot be replicated for at least a decade.

Pillar 2: Income That Grows With the Fleet The quarterly dividend sits at $0.4265, up from $0.141 in 2022. Management raised the dividend 10% in 2025 and targets 10% annual dividend growth long term. The yield is modest, but the growth math is what matters for a 20-year holder. Behind that sits $8.4 billion of free cash flow expected in 2026 and 2027, rising to $11.5 to $13 billion in 2028 and 2029, plus $4.7 billion remaining on the $5.0 billion buyback authorization.

Pillar 3: Built to Survive Cycles The 20-year power purchase agreements with Microsoft, Meta, and CyrusOne insulate revenue from commodity gyrations. Hyperscaler 2026 capex is tracking nearly 75% higher than last year, and the Calpine deal added natural gas, geothermal, batteries, and renewables on top of the nuclear core. Public support is durable too: 72% of U.S. adults favor nuclear energy and 87% support license renewals.

The Scenario Where This Underperforms If natural gas stays cheap, AI data center capex rolls over, and PJM dilutes its capacity market reforms, Constellation’s premium pricing thesis weakens, and the $17.5 billion in long-term debt post-Calpine looks heavier. The stock is already down roughly 24% year to date through June 16, which tells you the market is wrestling with exactly that risk. Yet the PTC floor, the 20-year contracts with investment-grade counterparties, and the simple absence of replacement reactors mean the forever thesis stays intact even in a slow-demand decade. CEO Joe Dominguez said: “America needs reliable, clean power and Constellation is built to meet this demand with the strength of our fleet.”

At roughly 22x forward earnings with 20%+ base EPS growth projected through 2029, the long-duration setup looks intact for patient owners.

In the latest trading session, Constellation Energy Corporation (CEG - Free Report) closed at $274.06, marking a +2.58% move from the previous day. This move outpaced the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.

Heading into today, shares of the company had lost 5.01% over the past month, outpacing the Oils-Energy sector's loss of 7.57% and lagging the S&P 500's gain of 0.29%.

The investment community will be closely monitoring the performance of Constellation Energy Corporation in its forthcoming earnings report. The company is forecasted to report an EPS of $2.3, showcasing a 20.42% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.07 billion, indicating a 48.62% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $11.73 per share and revenue of $40.04 billion, which would represent changes of +24.92% and +56.8%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Constellation Energy Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.34% upward. As of now, Constellation Energy Corporation holds a Zacks Rank of #3 (Hold).

With respect to valuation, Constellation Energy Corporation is currently being traded at a Forward P/E ratio of 22.78. This expresses a premium compared to the average Forward P/E of 17.67 of its industry.

Meanwhile, CEG's PEG ratio is currently 1.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Alternative Energy - Other stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.

The Alternative Energy - Other industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 150, placing it within the bottom 39% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

An updated edition of the April 27, 2026 article.

Nuclear energy is emerging as a cornerstone of the clean energy transition, providing a reliable and carbon-free source of electricity to meet growing power needs. As nations and utilities accelerate decarbonization efforts, nuclear power offers a distinct advantage through its ability to generate consistent, around-the-clock electricity, unlike weather-dependent renewable sources such as solar and wind.

The nuclear industry's prospects continue to strengthen, driven by license extensions for existing reactors, advancements in Small Modular Reactor (SMR) technology, approvals for new nuclear facilities and the restart of previously retired nuclear power plants in the United States. Increased investment by leading technology companies in SMR development also underscores growing confidence in nuclear energy’s long-term growth potential.

In the United States, efforts are underway to significantly expand nuclear generating capacity from approximately 100 GW in 2024 to nearly 400 GW by 2050. Nuclear energy currently supplies about 20% of the nation’s electricity, and ongoing license renewals by the U.S. Nuclear Regulatory Commission are helping extend the operating lives of existing plants, ensuring a stable source of carbon-free power.

The sector is also benefiting from supportive government policies, continued innovation in SMR technology and initiatives to strengthen the domestic nuclear fuel supply chain. At the same time, rapidly rising electricity demand from AI data centers, manufacturing reshoring and electric vehicle adoption is increasing the need for reliable, around-the-clock clean energy, creating significant growth opportunities for nuclear power providers.

With this increasing importance, nuclear energy-related stocks, such as PG&E Corporation (PCG - Free Report) , Constellation Energy Corporation (CEG - Free Report) and NextEra Energy (NEE - Free Report) , are becoming attractive investment options. Unlike other clean energy sources affected by intermittency, nuclear power plants provide a consistent and stable energy output, operating around the clock except during planned maintenance intervals.

Nuclear power offers a significant advantage over other clean energy sources by generating large amounts of electricity with a much smaller land footprint. Although all traditional energy sources produce waste, the nuclear industry benefits from stringent regulations and well-established systems for the safe handling, storage and management of nuclear waste. Additionally, rising electricity demand driven by the growing adoption of electric vehicles, increasing grid requirements, and the rapid expansion of artificial intelligence-powered data centers is reinforcing the critical role of nuclear energy in providing reliable, large-scale power generation.

As the production of clean energy is expected to rise from nuclear plants, a continuous supply of high-quality uranium is essential to keep the nuclear units running. Companies like Denison Mines (DNN - Free Report) and BHP Group Limited (BHP - Free Report) produce uranium and can benefit from the surging demand from nuclear power plants.

Nuclear Energy stocks have huge potential and can offer significant growth opportunities for investors. Our Nuclear Energy Screen makes it easier for investors to locate high-potential stocks at any given time.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

PG&E Corporation owns and operates California’s only active nuclear facility, the Diablo Canyon Power Plant. The company recently secured approval from the U.S. Nuclear Regulatory Commission to extend the operating licenses of both Diablo Canyon units by an additional 20 years. PG&E continues to invest in technologies that enhance the plant’s efficiency, reliability and operating life. The facility supplies nearly 20% of California’s carbon-free electricity, making it a critical component of the state's clean energy portfolio.

PG&E is also leveraging innovation to strengthen its nuclear operations, including the deployment of AI-driven tools at Diablo Canyon to improve performance, reduce costs and support regulatory compliance. Its nuclear assets provide a significant competitive advantage by delivering dependable carbon-free power, enhancing earnings visibility through long-term license extensions and positioning the company to benefit from future developments in nuclear energy.

While PG&E is not currently pursuing major nuclear expansion projects, the extended operating life of Diablo Canyon and potential policy support for advanced nuclear technologies could create additional growth opportunities. Furthermore, this Zacks Rank #2 (Buy) stock plans to invest approximately $73 billion between 2026 and 2030 to modernize and strengthen its utility infrastructure, supporting long-term operational and financial growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NextEra Energy operates several nuclear generation units through its subsidiary, NextEra Energy Resources. NEE’s nuclear assets form a cornerstone of its clean energy strategy, delivering steady, carbon-free baseload power that complements its leading wind and solar portfolio. This diverse generation mix strengthens grid reliability and underpins sustainable long-term earnings growth.

Ongoing investments in the upkeep and modernization of its nuclear facilities ensure top-tier operational performance, safety and regulatory adherence. These plants offer long service lives, low operating costs and protection from swings in fossil fuel prices.

NextEra Energy is expanding its natural gas and nuclear operations through strategic acquisitions, pipeline investments and new generation projects, positioning the company to capitalize on rising power demand and support long-term growth.

This Zacks Rank #3 (Hold) stock has a very disciplined capital investment plan, which is expected to fund the expansion of its renewable and clean energy generation through nuclear power plants.

Constellation Energy is the largest nuclear power plant operator in the United States, producing about 10% of the nation’s total clean energy. With over 20 reactors spread across the Midwest, Mid-Atlantic and Northeast, it plays a pivotal role in providing dependable, carbon-free electricity. Its expansive nuclear fleet enables the company to meet rising demand from energy-intensive sectors like data centers, while its position as the top merchant nuclear operator offers unmatched geographic reach and operational scale. The company is restarting the Three Mile Island Unit 1 and exploring SMR options to meet rising demand for clean energy in its service region.

To safeguard long-term operations, the company has secured multiple uranium supply contracts extending into the 2030s, helping mitigate geopolitical risks. It continues to modernize its plants to boost performance, extend operational life, and sustain a fleetwide capacity factor exceeding 94%, well above industry averages. The company is making strategic acquisitions to further expand its nuclear portfolio. Constellation Energy expects capital expenditures of nearly $5.7 billion and $4.7 billion for 2026 and 2027, respectively, including nuclear fuel purchases to build inventory and growth investments for uprates, renewals and plant upgrades.

Looking ahead, this Zacks Rank #3 stock is ramping up investments to grow its nuclear capacity. This includes upgrades to existing sites and the potential addition of up to one gigawatt of new carbon-free capacity over the next decade. The company is also advancing next-generation nuclear technologies to further enhance efficiency and sustainability in the years ahead.

Constellation Energy Corporation (CEG - Free Report) ended the recent trading session at $253.76, demonstrating a +2.86% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.5%. On the other hand, the Dow registered a gain of 0.7%, and the technology-centric Nasdaq increased by 0.31%.

Heading into today, shares of the company had lost 10.37% over the past month, lagging the Oils-Energy sector's loss of 2.9% and the S&P 500's loss of 0.23%.

Market participants will be closely following the financial results of Constellation Energy Corporation in its upcoming release. It is anticipated that the company will report an EPS of $2.3, marking a 20.42% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.07 billion, up 48.62% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $11.73 per share and a revenue of $40.04 billion, demonstrating changes of +24.92% and +56.8%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Constellation Energy Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.35% increase. Constellation Energy Corporation is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Constellation Energy Corporation is currently exchanging hands at a Forward P/E ratio of 21.03. For comparison, its industry has an average Forward P/E of 17.58, which means Constellation Energy Corporation is trading at a premium to the group.

Investors should also note that CEG has a PEG ratio of 0.97 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 1.99.

The Alternative Energy - Other industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 110, this industry ranks in the top 46% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CEG in the coming trading sessions, be sure to utilize Zacks.com.

BALTIMORE--(BUSINESS WIRE)--Constellation Energy Corporation (Nasdaq: CEG) announced today the commencement of an underwritten public offering of an aggregate of 11,000,000 shares of its common stock (the “Offering”) by certain of its shareholders (the “Selling Shareholders”). Constellation is not selling any shares of common stock in the Offering and will not receive any proceeds from any sale of shares by the Selling Shareholders.

Constellation also announced that it intends to purchase from the underwriters 2,000,000 shares of common stock that are the subject of the Offering at the price paid to the Selling Shareholders by the underwriters in the Offering (the “Share Repurchase”). The closing of the Offering is not conditioned upon the completion of the Share Repurchase, and the closing of the Share Repurchase is contingent on the closing of the Offering. The Offering is subject to market and other conditions, as well as customary closing conditions. The Share Repurchase will be conducted pursuant to Constellation’s existing share repurchase program.

Morgan Stanley and J.P. Morgan are acting as the underwriters for the Offering. The underwriters will have a 30-day option to purchase up to an additional 1,350,000 shares of common stock from the Selling Shareholders.

A registration statement on Form S-3ASR (File No. 333-292608) relating to these securities has been filed with the U.S. Securities and Exchange Commission (the “SEC”) and was effective upon filing. The Offering is being made only by means of a free writing prospectus, a prospectus supplement and the accompanying base prospectus. Before investing, prospective investors should read the free writing prospectus, the prospectus supplement, the accompanying base prospectus, and the documents incorporated by reference therein for more complete information about Constellation and the Offering by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the free writing prospectus, the prospectus supplement, once available, and the accompanying base prospectus may be obtained by contacting: Morgan Stanley, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; and J.P. Morgan, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at [email protected] and [email protected].

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Constellation

Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the largest private-sector power producer in the world and the nation’s largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind and solar facilities, our fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation’s clean energy and delivering the around-the-clock reliability needed to power America’s growing economy. We are also the largest nuclear energy company in the U.S. and a leading competitive retail supplier, serving approximately 2.5 million customer accounts nationwide, including 80% of the Fortune 100. We are committed to investing in innovation and new technologies to drive the transition to a reliable, sustainable and secure energy future.

Cautionary Statements Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic and financial performance, are intended to identify such forward-looking statements. These forward-looking statements are based on assumptions, expectations and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Any forward-looking statements are not guarantees of our future performance and are subject to risks and uncertainties. These forward-looking statements include, but are not limited to, statements regarding the Offering and potential methods of distribution of the securities by the underwriters.

Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. The factors that could cause actual results to differ materially from the forward-looking statements made by us include those factors discussed in (i) our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 18 — Commitments and Contingencies; (ii) our Quarterly Report on Form 10-Q for the quarter ended on March 31, 2026 in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 15 — Commitments and Contingencies; and (iii) other factors discussed in filings with the SEC by us.

You are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. We do not undertake any obligation to update or revise any forward-looking statement to reflect events or circumstances after the date as of which any such forward-looking statement is made.

Shares of Constellation Energy (CEG +2.10%) slumped today, trading 7% lower as of 2:20 p.m. ET Monday. Some institutional investors are selling shares in the largest nuclear energy company in the U.S., and retail investors aren't happy about that. But that's not how it should be.

Image source: Getty Images.

All about the Constellation stock sale Monday morning, Constellation Energy disclosed that certain existing institutional shareholders are selling 11 million shares of the company at a price of $281 per share. That's a discount to the stock's previous day's closing price of $287.75 per share. They expect to complete the transaction tomorrow, on June 2.

When a large block of shares is dumped at a price below the market price, the stock is likely to fall, mainly due to valuation concerns. In simple terms, are big shareholders selling because they believe Constellation Energy stock is overvalued? The stock is down so far this year, but is still up nearly 220% in three years, as of this writing.

Here's what investors are missing.

Today's Change

(

2.10

%) $

5.19

Current Price

$

251.90

First, Constellation Energy is not issuing new shares and will not receive any proceeds from the sale, meaning current investors are not facing any real share dilution. The underlying business fundamentals, including its nuclear energy dominance, vast power generation capacity, and long-term contracts, haven't changed.

Second, Constellation Energy will purchase two million shares at the same price of $281 apiece, provided the 11 million shares sale goes through. In a way, management is stating that it sees any institutional sell-off as temporary and believes it's an opportunity to scoop up some of its own shares.

What this means for Constellation investors The institutional share sale is likely related to the Calpine acquisition. In one of its biggest growth moves ever, Constellation Energy acquired Calpine in a $16.4 billion deal earlier this year. As part of the deal, Constellation issued 50 million shares to Calpine's former shareholders.

Because Calpine is the largest producer of electricity from natural gas and geothermal assets in the U.S., the acquisition has transformed Constellation Energy into an absolute powerhouse in nuclear, natural gas, and clean energy. That's an incredibly powerful position to hold in today's market, where the artificial intelligence data center boom is driving demand for massive, uninterrupted, 24/7 power to unprecedented levels.

Constellation is growing rapidly, and any dip in its share price presents an opportunity to buy for the long term.

, /PRNewswire/ -- Calpine, a business unit of Constellation, has announced the completion of a 25-megawatt (MW) expansion project at The Geysers geothermal complex located in Sonoma County, California. The addition builds on Calpine's continued investments in The Geysers to support California's renewable energy goals and follows the completion of a 38 MW energy storage system at the site in 2024. The new capacity will generate enough electricity to power over 25,000 homes each year.

"As California's electricity demand continues to grow, investments in reliable, around-the-clock renewable energy are more important than ever," said Aimee Blaine, senior vice president of Calpine's geothermal region. "The Geysers is one of the nation's most important geothermal resources, and this expansion reflects our commitment to strengthening grid reliability while advancing California's clean energy goals."

For over 65 years, The Geysers has provided clean, geothermal energy across California. Of the 25 MW expansion, 18 MW will be directed to Clean Power Alliance (CPA), which serves customers across Southern California, providing reliable, around-the-clock renewable power as demand for clean electricity continues to grow. The remaining 7 MW, which were brought online last year, are being supplied to MCE to support Bay Area residents and businesses.

"Clean Power Alliance is committed to delivering dependable clean energy to our customers, and geothermal power plays an important role in providing around-the-clock renewable electricity," said Matthew Langer, chief operating officer, Clean Power Alliance. "Partnerships like this strengthen California's clean energy future while supporting a more resilient and sustainable grid."

The recent expansion was completed under a Project Labor Agreement (PLA) with local labor unions to build critical piping infrastructure, ensuring the work was completed by a highly skilled craft workforce under strong labor standards.

The Geysers is the world's largest operating geothermal complex, generating electricity by tapping natural steam reservoirs deep beneath the earth's surface. Geothermal energy provides an inherent environmental advantage and helps meet California's clean air goals. Geothermal power operates continuously regardless of weather or time of day, making it a critical source of baseload clean energy.

About Constellation
Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the largest private-sector power producer in the world and the nation's largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind and solar facilities, our fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation's clean energy and delivering the around-the-clock reliability needed to power America's growing economy. We are also the largest nuclear energy company in the U.S. and a leading competitive retail supplier, serving approximately 2.5 million customer accounts nationwide, including 80% of the Fortune 100. We are committed to investing in innovation and new technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.

About Clean Power Alliance
Clean Power Alliance is the locally operated, not-for-profit electricity provider serving 38 communities across Los Angeles and Ventura counties. CPA is the fourth largest electricity provider in California and the number one green power provider in the United States. CPA provides clean renewable energy at competitive rates for approximately three million residents and businesses, along with innovative programs that promote resiliency, electrification and customer bill savings. CPA has an investment-grade credit rating of A from S&P Global Ratings

Contact:
Linsey Wisniewski
Constellation Communications
667-218-7700
[email protected] 

SOURCE Constellation