In the latest close session, Constellation Energy Corporation (CEG) was up +1.72% at $323.48. The stock outpaced the S&P 500's daily loss of 0.05%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq gained 0.45%.
The company's shares have seen a decrease of 2.52% over the last month, not keeping up with the Oils-Energy sector's gain of 3.82% and the S&P 500's gain of 3.44%.
Analysts and investors alike will be keeping a close eye on the performance of Constellation Energy Corporation in its upcoming earnings disclosure. In that report, analysts expect Constellation Energy Corporation to post earnings of $3.08 per share. This would mark year-over-year growth of 12.41%. Simultaneously, our latest consensus estimate expects the revenue to be $6.36 billion, showing a 2.86% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.41 per share and a revenue of $24.23 billion, demonstrating changes of +8.54% and +2.79%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Constellation Energy Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Constellation Energy Corporation is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Constellation Energy Corporation is currently being traded at a Forward P/E ratio of 33.79. Its industry sports an average Forward P/E of 18.13, so one might conclude that Constellation Energy Corporation is trading at a premium comparatively.
We can also see that CEG currently has a PEG ratio of 2.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Alternative Energy - Other industry stood at 2.39 at the close of the market yesterday.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 164, finds itself in the bottom 34% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Constellation Energy Corporation (CEG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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