Why Constellation Energy Stock Popped Today
Key Points
Meta announced expanded commitment to nuclear energy this morning.
Even before that happened, TD Cowen was saying Constellation stock was a buy.
- 10 stocks we like better than Constellation Energy ›
Constellation Energy (NASDAQ: CEG) stock, one of the nation's biggest producers of electricity from nuclear power, gained 4% through 10:55 a.m. ET Friday on two positive news items.
Last night, investment banker TD Cowen initiated coverage of Constellation stock with a buy rating and a $440 price target. (Constellation stock costs only $335 and change, implying about a 31% price rise over the next 12 months.)
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Separately, this morning, social media giant Meta (NASDAQ: META) announced "landmark agreements that will extend and expand the operation of three nuclear power plants, boost the development of new advanced nuclear technology, and foster job growth in several American communities."
Image source: Getty Images.
The Meta news
Let's cover that second item first. Meta signed up Constellation to supply it with power last year. Now it's adding Vistra (NYSE: VST), Oklo (NYSE: OKLO), and privately held TerraPower to its mix of suppliers as well. In its statement, Meta said this makes it "one of the most significant corporate purchasers of nuclear energy in American history."
While the announcement doesn't imply any new business going to Constellation, it does confirm Meta's interest in and commitment to nuclear energy. That alone helps to secure Constellation's future revenue stream.
Moreover, Cowen calls Constellation stock "a compelling opportunity" and predicts it will continue to sign new deals through 2026, "above forward curve prices." Revenue from natural gas sales adds "intriguing upside potential" to the nuclear power thesis, according to Cowen.
Is Constellation stock a buy?
Constellation stock is not without risk, however. Priced at 37 times trailing earnings, Constellation stock looks expensive relative to forecasts for only 15% long-term earnings growth. The company is also burning cash and pays a miserly 0.5% dividend yield.
All things considered, you can probably find better places to invest your money than Constellation stock.
Should you buy stock in Constellation Energy right now?
Before you buy stock in Constellation Energy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $488,222!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,134,333!*
Now, it’s worth noting Stock Advisor’s total average return is 969% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 9, 2026.
Rich Smith has positions in Meta Platforms. The Motley Fool has positions in and recommends Constellation Energy and Meta Platforms. The Motley Fool has a disclosure policy.
Recommended Articles
