Constellation Energy Lights Up Investors - Barron's

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Profiting From the Pursuit of Power by Jack Willoughby

Summary: America's largest supplier of power can't churn it out fast enough. The nation's ever rising demand for electricity is turning Constellation Energy (CEG) into a rising star, with its current share price of $80 having doubled in the past three years. Some analysts foresee 20% or more upside for the shares in coming months, trading now at 18x 2007 earnings estimates. The company produces some of its product and purchases the rest from utilities, giving it a well-rounded knowledge of the industry, and the ability to offer large-scale customers lower prices than its competitors. According to CEO M. A. Shattuck III, "We're particularly able to leverage our business model during times when power gets constrained." Considering all signs of the times, Constellation is in a stellar position.
Related: Constellation Energy IPO: An E&P Offering That Works

CEG 1-yr chart