Constellation Energy (CEG), the largest nuclear power generator in the U.S., is positioned for significant growth following its $27 billion acquisition of Calpine in early 2026, enhancing its clean energy capabilities and expanding its operational footprint in California and Texas. The company reportedly generates about 10% of all clean electricity in the U.S.
Looking ahead, U.S. electricity demand is projected to increase by 25% by 2030 and up to 100% by 2050, driven by the growth of AI data centers and other electrification efforts. Constellation’s power generation fleet includes a variety of sources such as nuclear, geothermal, and natural gas, crucial for meeting this demand. The company also expects its earnings to grow by over 20% between 2026 and 2029, with a dividend payout ratio currently at 17%.
Despite a recent decline of approximately 40% from its October 2025 highs, CEG stock is considered undervalued, trading at a 23% discount to its industry. Analysts project about 70% upside potential if it returns to previous highs, underpinned by positive brokerage recommendations, with 16 out of 22 ratings classified as “Strong Buys.”
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