Latest news with #Calpine
Yahoo
3 hours ago
- Business
- Yahoo
Why Constellation Energy Stock Surged 37% in May
Constellation Energy reported strong first-quarter results last month. The company is benefiting from a resurgence in nuclear power. It's in a strong position to continue growing briskly in the coming years. 10 stocks we like better than Constellation Energy › Shares of Constellation Energy (NASDAQ: CEG) rocketed 37% in May, according to data provided by S&P Global Market Intelligence. Powering the energy producer's stock price was its strong first-quarter results and recently signed executive orders by President Donald Trump aimed at ushering in a nuclear energy renaissance in the country. Constellation Energy reported strong first-quarter results in early May. The power producer generated $2.14 per share of adjusted operating earnings, up from $1.82 per share in the year-ago period, a nearly 18% increase. The company benefited from the strong performance of its business. That strong showing gave the company the confidence to reaffirm its full-year outlook that it will generate between $8.90 and $9.60 per share of adjusted earnings. The company also noted that it remains on track to close its acquisition of Calpine by the end of this year. That deal will significantly expand its leading clean energy fleet, enhancing its earnings growth rate. In addition, grid operator PJM selected the company's Crane Clean Energy Center to be fast-tracked for interconnection to the grid. Constellation Energy is restarting the dormant nuclear power plant to help support the cloud and artificial intelligence (AI) power needs of tech giant Microsoft. The company is working to restart the 845-megawatt nuclear power generating unit by 2028. It previously shut down the plant for economic reasons. Constellation Energy is bringing that plant back online to help support an expected surge in power demand in the coming years from AI data centers and other catalysts. The country's growing need for power led Trump to sign executive orders last month aimed at ushering in a nuclear renaissance in the country. The president wants to build more nuclear reactors in the country to help supply more power to the grid. Constellation Energy applauded the move. In a statement on the nuclear executive orders, the company commented, "We applaud the Trump administration for its strong support for preserving and expanding America's nuclear fleet to power our economy, win the AI race against China, and reassert America's leadership in nuclear energy." The energy company also highlighted that it's "walking the walk with plans to invest billions of dollars into its fleet on projects like increasing the generation capacity of our plants by up to 1,000 additional megawatts and relicensing the entire fleet into the 2070s." Shares of Constellation Energy have rallied sharply over the past year, powered by the anticipated surge in demand for nuclear energy. The resurgence continued in early June when the company signed a 20-year power purchase agreement with Meta Platforms for power produced at its Clinton Clean Energy Center (1.1 gigawatts). Growing demand for nuclear energy plus the company's pending Calpine deal position Constellation Energy to grow its earnings briskly in the coming years (more than 13% annually through 2030 without the boost from Calpine). That's a robust rate and could continue powering a surge in Constellation's stock in the coming years. Before you buy stock in Constellation Energy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Energy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $657,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $842,015!* Now, it's worth noting Stock Advisor's total average return is 987% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Matt DiLallo has positions in Meta Platforms. The Motley Fool has positions in and recommends Constellation Energy, Meta Platforms, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why Constellation Energy Stock Surged 37% in May was originally published by The Motley Fool
New York Times
5 days ago
- Business
- New York Times
Energy Dept. Cuts $3.7 Billion for New Technologies to Lower Emissions
The Energy Department announced on Friday that it was terminating $3.7 billion in Biden-era awards to companies trying to demonstrate technologies that might one day help tackle global warming. Some of the 24 canceled awards would have gone to industrial companies that were aiming to reduce emissions from cement, iron, glass and chemicals production. Others had been awarded to fossil fuel and cement companies attempting to trap and bury carbon dioxide from their smokestacks before the gas escapes into the atmosphere and heats the planet. Two of the terminated awards, worth $540 million in all, would have gone to Calpine, one of the nation's largest producers of electricity, which was trying to capture and store the carbon from two large natural gas power plants in Yuba City, Calif., and Baytown, Texas. Also on the chopping block was a $331 million award to the oil giant Exxon Mobil, which had been planning to replace natural gas with lower-emissions hydrogen at a chemical facility in Baytown, Texas. In announcing the cuts, the Energy Department said in a statement that the projects 'failed to advance the energy needs of the American people, were not economically viable and would not generate a positive return on investment of taxpayer dollars.' 'Today, we are acting in the best interest of the American people by canceling these 24 awards,' Energy Secretary Chris Wright said. He said that the previous administration had 'failed to conduct a thorough financial review' of the spending and suggested the process had been rushed, noting that 16 of the awards had been made between Election Day and President Trump's inauguration on Jan. 20. Want all of The Times? Subscribe.
Yahoo
15-05-2025
- Business
- Yahoo
Is Constellation Energy (CEG) The Most Crowded Hedge Fund Stock That is Targeted by Short Sellers?
We recently published a list of . In this article, we are going to take a look at where Constellation Energy Corporation (NASDAQ:CEG) stands against other most crowded hedge fund stocks that are targeted by short sellers. Hedge funds piling into a stock is a signal of conviction. After all, if institutional investors are backing a company, there has to be a good reason for it, right? Things get interesting when the same stock ends up with a high short interest. Where some investors back the company to become successful, others bet on its downfall. This contradiction is often eagerly tracked by investors, as it can potentially lead to explosive moves to either side. Consider, for instance, a scenario where a stock with a high short interest and a high hedge fund holding starts going up. As everyone rushes to buy more of the already popular stock, short sellers rush to close their positions, triggering a strong bull rally. We decided to shortlist stocks that were the most likely candidates for such a rally. To come up with our list of 15 most crowded hedge fund stocks that are targeted by short sellers, we only considered stocks with a market cap of at least $1 billion and a short interest of at least 3%. We then ranked these stocks by the number of hedge funds that have the stock in their portfolio. A close up of a wind turbine producing electricity as the sun sets. Number of Hedge Fund Holders: 85 Short Interest: 3.34% Constellation Energy Corporation (NASDAQ:CEG) operates as a seller and producer of energy products and services. The company operates through Midwest, ERCOT, Mid-Atlantic, New York, and Other Power Regions. Citi upgraded Constellation Energy (NASDAQ:CEG) last month from Hold to Buy and assigned it a price target of $232. According to the firm, with the recent share price dip, the stock's risk-reward ratio seems more appealing. Citi analyst Ryan Levine also mentioned some factors driving his upgrade, including natural gas builds in Texas, downward protection from power price fluctuations, co-location deals, and a favorable stock issuance by Calpine. On the back of the increasing demand for energy from AI applications, the company reiterated its full-year adjusted earnings guidance. As per the guidance, the firm anticipates EPS between $8.90 to $9.60. The company's planned acquisition of Calpine is expected to be completed by the end of this year. It is also redirecting its focus to potential data center projects linked to the US electrical grid. CEO Joseph Dominguez highlighted in the earnings conference call: 'On-grid sales are increasingly attractive to us and to our customers, but we still believe that behind-the-meter configurations will make sense for some customers.' Overall, CEG ranks 5th on our list of most crowded hedge fund stocks that are targeted by short sellers. While we acknowledge the potential of CEG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CEG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Bloomberg
13-05-2025
- Business
- Bloomberg
A $12 Billion Window Into AI's Race for Power
The artificial intelligence arms race has prompted a contest for America's power plants. NRG Energy Inc.'s acquisition of a gas-fired fleet comes a few months after Constellation Energy Corp.'s even bigger deal for Calpine Corp. US power generation deals announced through mid-May add up to $51 billion, more than in any entire year this century save one. NRG's offers a $12 billion proof point that Big Tech's datacenter boom, among other things, demands vast quantities of power. It also underscores a related point: History shows the US will struggle to build the plants required to generate that power.
Forbes
09-05-2025
- Business
- Forbes
New Long-Term Deals Boost Constellation Energy
MIDDLETOWN, PENNSYLVANIA - OCTOBER 10: in this aerial view, the shuttered Three Mile Island nuclear ... More power plant stands in the middle of the Susquehanna River on October 10, 2024 near Middletown, Pennsylvania. (Photo by) Constellation Energy (NASDAQ:CEG) stock increased by roughly 10% on Tuesday, even though the company's Q1 results were mixed, with revenues exceeding estimates while earnings fell slightly below expectations. This increase is attributed to the company announcing it is close to finalizing long-term contracts for nuclear energy supply. These upcoming agreements provide Constellation with significantly better revenue predictability, catering to the rapidly growing U.S. electricity demand driven by server farms operating artificial intelligence applications, the increasing electrification of the automotive sector, and a shift away from fossil fuels in manufacturing. Additionally, the company claims that these contracts bolster the justification for its pending acquisition of Calpine for $16.4 billion, which is a leading operator of gas-fired power plants. Despite the more optimistic outlook, Constellation Energy stock may not be a solid buy at its present market price of approximately $275. We have identified a couple of issues regarding CEG stock despite its relatively reasonable valuation. We reach our conclusion by analyzing the current valuation of CEG stock against its operational performance in recent years as well as its present and historical financial health. Our examination of Constellation Energy across critical metrics such as Growth, Profitability, Financial Stability, and Downturn Resilience indicates that the company possesses a moderate operating performance and financial position, as described below. However, if you're looking for upside potential with less volatility than individual stocks, the Trefis High-Quality portfolio offers an alternative, having surpassed the S&P 500 and achieved returns of over 91% since its launch. Based on the amount you pay per dollar of sales or profit, CEG stock is currently valued in alignment with the wider market. • Constellation Energy has a price-to-sales (P/S) ratio of 3.0 compared to a figure of 2.8 for the S&P 500 • Additionally, it has a price-to-earnings (P/E) ratio of 19.0 against the benchmark's 24.5 Constellation Energy's Revenues have decreased slightly in recent years. • Constellation Energy has recorded an average growth rate of 7.0% in its top line over the last 3 years (compared to a 6.2% increase for the S&P 500) • Its revenues have declined by 5.4% from $25 billion to $24 billion in the past 12 months (in contrast to a growth of 5.3% for the S&P 500) • Furthermore, its quarterly revenues dropped by 7.1% to $5.4 billion in the most recent quarter from $5.8 billion a year prior (versus a 4.9% improvement for the S&P 500) Constellation Energy's profit margins are lower than most companies within the Trefis coverage universe. • Constellation Energy's Operating Income was $4.8 billion over the last four quarters, which corresponds to a moderate Operating Margin of 20.6% (compared to 13.1% for the S&P 500) • Constellation Energy's Operating Cash Flow (OCF) during this period amounted to $-2.5 billion, indicating a very poor OCF Margin of -10.5% (relative to 15.7% for the S&P 500) • For the last four-quarter period, Constellation Energy's Net Income was $3.7 billion — suggesting a moderate Net Income Margin of 15.9% (compared to 11.3% for the S&P 500) Constellation Energy's balance sheet appears strong. • Constellation Energy's total debt was $8.4 billion at the close of the most recent quarter, while its market capitalization stands at $86 billion (as of 5/6/2025). This results in a strong Debt-to-Equity Ratio of 11.8% (compared to 21.5% for the S&P 500). [Note: A lower Debt-to-Equity Ratio is preferable] • Cash (including cash equivalents) constitutes $3 billion of the $53 billion in Total Assets for Constellation Energy, resulting in a moderate Cash-to-Assets Ratio of 5.7% (compared to 15.0% for the S&P 500) CEG stock has exhibited a greater negative impact than the benchmark S&P 500 index during several recent downturns. As investors hope for a mild landing from the U.S. economy, how severe could conditions become if another recession hits? Our dashboard How Low Can Stocks Go During A Market Crash illustrates how key stocks performed during and post the latest six market crashes. • CEG stock plummeted 55.7% from a peak of $97.16 on 27 November 2022 to $43.09 on 23 February 2022, compared to a peak-to-trough decline of 25.4% for the S&P 500 • The stock completely regained its pre-Crisis peak by 25 November 2022 • Since that time, the stock reached a high of $347.44 on 26 January 2025 and currently trades at approximately $275 In conclusion, Constellation Energy's performance across the metrics outlined above can be summarized as follows: • Growth: Neutral • Profitability: Weak • Financial Stability: Strong • Downturn Resilience: Neutral • Overall: Neutral This aligns with the stock's moderate valuation, leading us to conclude that CEG is reasonably priced but has a few risks as well, making it a neutral choice. While it may not appear that there is significant upside to CEG stock, the Trefis Reinforced Value (RV) Portfolio, which has outperformed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices), has managed to deliver strong returns for investors. What is the reason? The quarterly rebalanced portfolio of large-, mid-, and small-cap RV Portfolio stocks provides a flexible way to optimize favorable market conditions while minimizing losses when markets decline, as highlighted in the RV Portfolio performance metrics.
