Why Shares of Constellation Energy Are Powering Higher Today

Source Motley_fool

Key Points

  • An analyst has a new bullish view on Constellation stock.

  • The company is a leader among nuclear energy stocks.

  • As a profitable company, Constellation is a lower-risk nuclear energy investment compared to upstart nuclear companies.

  • 10 stocks we like better than Constellation Energy ›

After bidding Constellation Energy (NASDAQ: CEG) stock higher yesterday on positive news about a new project, investors are continuing to send the utility stock higher today. While the good news from yesterday is providing some fuel for the rise, an analyst's bullish opinion on Constellation stock is adding to the buying activity.

As of 12:09 a.m. ET, shares of Constellation Energy are up 2.9%.

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Person using smartphone.

Image source: Getty Images.

Big data behooves Constellation's business

Maintaining an outperform rating, Sophie Karp, an analyst at KeyBanc, boosted the price target on Constellation stock to $417 from $357. According to The Fly, Karp predicated the more auspicious price target on the belief that the growing value of data will contribute to growth in the company's business, since Constellation's assets support data center infrastructure -- and will presumably continue to do so even more in the near future.

As of yesterday's closing price of $389.56, Karp's price target implies upside of 7%.

Operating the largest nuclear fleet in the United States, Constellation has grown brighter on nuclear energy investors' radars when the company announced its plan to restart the nuclear power plant on Three Mile Island to support Microsoft's data center operations.

Is it too late to power your portfolio with Constellation stock?

While nuclear energy upstarts are grabbing the lion's share of attention from those looking for exposure to the growing industry, Constellation stock is a common consideration for more conservative investors, since the company consistently generates profits. Although the analyst's price target is encouraging, investors should take it with a grain of salt, since the time horizon that the Karp has in mind is unclear. Nonetheless, for those interested in a lower-risk nuclear investment, Constellation is a valid option.

Should you invest $1,000 in Constellation Energy right now?

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy 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.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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