CEG Stock Is Trading Above 200-Day SMA: Time to Buy, Hold or Sell?

Constellation Energy Corporation’s CEG shares are trading above its 200-day simple moving average (“SMA”), signaling a bullish trend. CEG derives substantial benefits from its nuclear operations. Its nuclear fleet delivers a reliable, stable and cost-effective supply of electricity while supporting environmental sustainability through the generation of zero-emission power.

The 200-day SMAs are a key indicator for traders and analysts to identify support and resistance levels. It is considered particularly important as this is the first marker of an uptrend or downtrend of the stocks.

CEG 200 Day SMA

CEG’s robust nuclear infrastructure enables it to fulfill the increasing demand from power-intensive businesses, such as data centers.

Another operator, Dominion Energy D, operates multiple nuclear power stations, including Surry, North Anna and Millstone, which provide a significant portion of the electricity for its service areas. The company is also exploring advanced nuclear technologies like Small Modular Reactors.
 
In the past six months, Constellation Energy’s shares returned better than Dominion Energy.

Price Performance (Six months)

Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add CEG stock to their portfolio.

Multiple Factors Acting as Tailwinds for Constellation Energy

Constellation Energy is well placed to benefit from rising clean-energy demand, backed by a diversified portfolio led by its extensive nuclear fleet. Its focus on zero-carbon power enhances both reliability and sustainability, with nuclear assets delivering an impressive 96.8% capacity factor in the third quarter of 2025.

Constellation Energy, apart from successfully operating the nuclear fleet, is expanding its renewable portfolio through investments in wind and solar projects. Constellation Offsite Renewables program assists businesses in procuring energy from off-site renewable facilities.

The completion of the Calpine acquisition strengthens Constellation Energy’s growth prospects by expanding its presence in competitive power markets and adding efficient gas-fired assets. This improves earnings diversification, cash flow stability and operational flexibility while complementing the company’s nuclear-led clean-energy platform, positioning it to benefit from rising power demand and grid reliability needs.

CEG plans to invest nearly $3.5 billion in 2026 and is focused on innovation and substantial investments in sustainable energy technologies, which also strengthen its ability to navigate market conditions and capture new opportunities.

Constellation Energy’s Earnings Estimates Moving North

The Zacks Consensus Estimate for Constellation Energy’s 2026 earnings per share indicates year-over-year growth of 21.24%.

Another company, Vistra Energy VST, generates a large volume of clean energy to meet demand from its customers. The Zacks Consensus Estimate for Vistra’s 2026 earnings per share implies year-over-year growth of 63.49%.

CEG Stock Returns Better Than Industry

Return on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

Constellation Energy’s trailing 12-month return on equity of 21.59% is better than the industry average of 6.37%.
 

CEG Stock Trades at a Premium

Constellation Energy is currently trading at a premium compared with its industry on a forward 12-month P/E basis. CEG is currently trading at a P/E F 12 M of 28.47X compared with its industry’s 20.37X.

CEG’s Capital Return Program

Since 2023, CEG’s board of directors has authorized the repurchase of up to $3 billion of its outstanding common stock. As of Sept. 30, 2025, there was approximately $593 million of remaining authority to repurchase shares of the company's outstanding common stock.

CEG aims to increase its dividend by 10% annually, subject to the board's approval. Its quarterly dividend is 38.78 cents per share at present, resulting in an annualized dividend of $1.55. Check CEG’s dividend history here.

Wrapping Up

Constellation Energy is well-positioned to capitalize on rising clean-energy demand across its service territories. Supported by a robust generation portfolio, the company is equipped to meet growing energy needs in a reliable and efficient manner.

Existing shareholders of the company will benefit from continued dividend payments, share buyback programs and rising earnings expectations, all of which reinforce the company’s solid financial outlook.

Constellation Energy is currently trading at a premium, so the new investors should wait a little longer before adding this Zacks Rank #3 (Hold) stock to their portfolio.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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This article originally published on Zacks Investment Research (zacks.com).

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