Constellation Energy Corporation (CEG) closed at $280.68 in the latest trading session, marking a -2.36% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.94%.
Coming into today, shares of the company had lost 18.63% in the past month. In that same time, the Oils-Energy sector gained 11.13%, while the S&P 500 gained 0.89%.
Market participants will be closely following the financial results of Constellation Energy Corporation in its upcoming release. In that report, analysts expect Constellation Energy Corporation to post earnings of $2.2 per share. This would mark a year-over-year decline of 9.84%. In the meantime, our current consensus estimate forecasts the revenue to be $5.49 billion, indicating a 1.92% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.32 per share and revenue of $24.46 billion, indicating changes of +7.5% and 0%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Constellation Energy Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Constellation Energy Corporation is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Constellation Energy Corporation is presently being traded at a Forward P/E ratio of 25.49. This indicates a premium in contrast to its industry's Forward P/E of 19.14.
It's also important to note that CEG currently trades at a PEG ratio of 1.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Alternative Energy - Other industry currently had an average PEG ratio of 1.48 as of yesterday's close.
The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 95, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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