Constellation Energy: Enjoy The AI Moment, But Don't Get Burned

(9min)

Summary

  • Constellation Energy stock has surged over 130% in the past year, outperforming its utilities sector peers.
  • CEG's buying optimism has been bolstered by its recent partnership with Microsoft, underpinning its long-term base earnings growth outlook.
  • Caution must not be understated, even as Constellation leads its nuclear energy peers in participating in the AI growth wave. I will explain why.
  • CEG's growth-adjusted valuation seems reasonable, but the stock hasn't been immune to steep pullbacks and underperformance against its sector peers.
  • I explain why optimism in CEG is justified. However, the risk/reward seems balanced now. Investors should wait patiently for a potential pullback before pulling the buy trigger.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Microsoft And Constellation Energy Plan To Restart Pennsylvania"s Three Mile Island Nuclear Plant

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Constellation: Outperformed Utilities Peers Easily

Constellation Energy Corporation (NASDAQ:CEG) investors have likely nothing much to complain about as the nuclear energy company's stock surged more than 130% over the past year. Despite its

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