Constellation Energy Corporation CEG benefits significantly from its nuclear operations, being the largest provider of nuclear energy in the United States. Its nuclear fleet provides a reliable and stable source of carbon-free energy, powering millions of homes and businesses.
The company is set to gain from President Trump’s four executive orders to deploy new nuclear reactors and strengthen the supply chain. These orders aim to increase the U.S. nuclear energy capacity from 100 gigawatt (GW) to 400 GW by 2050. In addition to encouraging the construction of reactors close to military installations and Artificial Intelligence-based data center hubs, which need enormous amounts of power to run, the executive orders give priority to the domestic uranium supply.
The orders fit into Constellation Energy's growth strategy, which focuses on expanding its nuclear operations mainly by relicensing existing facilities, establishing long-term power purchase agreements and investigating options for the building of additional reactors. The company is specifically looking at installing additional reactors at current sites, obtaining new electricity consumers like Meta, and prolonging the working life of existing plants.
CEG’s fleet of over 20 reactors in the Midwest, Mid-Atlantic, and Northeast contributes significantly to the reliable, carbon-free electricity supply. The company can meet the growing demand from power-intensive industries like data centers, thanks to its strong nuclear infrastructure.
By securing several uranium supply contracts that remain through the 2030s, CEG has reduced the risk of nuclear fuel amid the worldwide geopolitical unpredictability. The company constantly exhibits excellent levels of effectiveness and reliability, as seen by its fleetwide capacity factor of over 94%, which is much higher than industry averages. Constellation Energy gains from its initiative to update its nuclear facilities to increase efficiency and prolong their useful lives.
Here’s How Other Nuclear Stocks May Benefit
Some other companies are poised to benefit from the executive orders by expanding nuclear operations:
Vistra Corp. VST has demonstrated a focus on acquiring nuclear assets to quickly grow its portfolio. Vistra also plans to modernize existing nuclear facilities and explore potential expansions with data center operators.
Duke Energy DUK has invested significantly in safety and efficiency upgrades at its nuclear facilities, including the Robinson plant, to ensure they meet current industry standards and prepare for extended operation. Duke Energy plans to extend the operating licenses of all 11 of its nuclear reactors, indicating a broader strategy to maintain a strong nuclear power presence.
CEG Stock’s Price Performance
In the past three months, CEG’s shares have risen 26.4% compared with the industry’s 16.8% growth.
Image Source: Zacks Investment Research
The Zacks Rundown for CEG
CEG is trading at a premium relative to the industry, with a forward 12-month price-to-earnings ratio of 28.03X compared with the industry average of 21.82X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 earnings per share indicates an increase of 9% and 22.38%, respectively.
Image Source: Zacks Investment Research
CEG currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpConstellation Energy Corporation (CEG) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Vistra Corp. (VST) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
