Jim Cramer on Constellation Energy: "I Like This One"

Constellation Energy Corporation (NASDAQ:CEG) is one of the noteworthy S&P 500 stocks Jim Cramer highlighted. Cramer was bullish on the stock in light of its valuation, as he remarked:

Next, the fifth worst performer last month was Constellation Energy. It’s the independent power producer with a ton of nuclear exposure. Stock’s lost more than 20% last month. Trump administration announced a plan to make energy more affordable in the Mid-Atlantic region by calling for $15 billion in investments in new power plants, as well as caps on how much existing plants can charge for electricity. Not great. Now, I do think Constellation’s worth buying into weakness because new power plants take ages to build, and price gouging’s never been a part of their strategy. At 24 times forward earnings, you know what, I like this one.

Constellation Energy Corporation (NASDAQ:CEG) produces and supplies electricity, natural gas, and sustainable energy solutions through nuclear, wind, solar, natural gas, and hydro assets. During the January 16 episode, a caller explained that they sold their shares after the stock started declining following President Trump’s comments about an electricity rate cap. In response, Cramer commented:

You know, it’s funny, I was… going to tell you it’s Constellation or Vistra. I mean, the fact is that when the president gets involved, it’s too uncertain. You’ve got a really big gain in the stock, and it’s time to move on. We’ll find other winners, I promise.

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Disclosure: None. This article is originally published at Insider Monkey.