Constellation Energy Outperforms Market with Impressive Growth

Constellation Energy Corporation (CEG), based in Baltimore, Maryland, is a leading producer and seller of energy products and services. With a market capitalization of $84 billion, CEG focuses on generating and distributing nuclear, hydro, wind, and solar energy solutions. Its diverse client base includes homeowners, institutional customers, public sectors, community aggregations, and businesses.

Over the past year, CEG’s stock has significantly outperformed the broader market. The company has seen a 30.1% increase in its share price, while the S&P 500 Index ($SPX) has risen by nearly 9.2% during the same period. Notably, in 2025, CEG’s share price increased by 21%, compared to SPX’s decline of 3.7% year-to-date.

Additionally, CEG’s performance surpasses that of the Utilities Select Sector SPDR Fund (XLU), which has gained about 14% over the past year. CEG’s strong year-to-date returns are marked by double-digit growth, considerably outpacing the ETF’s 5.8% increase.

The company’s recent success can be attributed to its acquisition of Calpine, a natural gas and geothermal giant, which positions CEG as the largest clean energy firm in the U.S. This strategic expansion into power-dense regions, including Texas and California, along with increased natural gas capacity, enhances CEG’s growth potential. A recent 20-year power purchase agreement with Microsoft Corporation (MSFT) further solidifies its market position.

On May 6, CEG shares rose more than 10% following the announcement of its first-quarter results. The company reported an adjusted earnings per share (EPS) of $2.14, reflecting a 17.6% increase year-over-year. Revenue also grew by 10.2% year-over-year, reaching $6.8 billion.

For the current fiscal year, which ends in December, analysts project CEG’s EPS to increase by 10.2% to $9.55 on a diluted basis. The company’s history demonstrates a strong track record of beating or matching consensus earnings estimates over the last four quarters.

Currently, 16 analysts are covering CEG’s stock, with a consensus rating of “Strong Buy.” This is based on 12 “Strong Buy” ratings and four “Holds.” This outlook has improved slightly from a month ago, when 11 analysts indicated a “Strong Buy.”

On May 7, UBS analyst William Appicelli maintained a “Buy” rating on CEG, raising the price target to $320, which suggests an upside potential of 18.3% from current levels. The mean price target stands at $302.13, representing an 11.7% premium over the current price. Additionally, the highest price target of $385 indicates a substantial potential upside of 42.3%.

On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data presented are for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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