We came across a bullish thesis on Constellation Energy Corporation on Make Money, Make Time’s Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on CEG. Constellation Energy Corporation’s share was trading at $321.27 as of September 17th. CEG’s trailing and forward P/E were 33.67 and 28.74 respectively according to Yahoo Finance.
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Constellation Energy Group (CEG), headquartered in Baltimore, is the largest producer of carbon-free electricity in the U.S., with 32 GW of capacity—70% from nuclear and the balance from natural gas, hydro, wind, solar, and storage. Its nuclear fleet alone provides ~20% of all U.S. nuclear generation, making it the single largest source of carbon-free power in the country. CEG counts hyperscalers such as Microsoft, Amazon, and Google among its key customers and recently announced a 20-year deal with Meta beginning in 2027.
The company also expects to close its acquisition of Calpine in Q4 2025 and has authorized a $400 million share repurchase program, reflecting strong capital allocation discipline. In Q2, revenue grew 11.3% to $6.1 billion, while GAAP EPS rose 3.5% to $2.67. Nuclear output declined modestly to 45,170 GWh due to unplanned outages, but CEG continues to operate at a 94% capacity factor, underpinned by heavy investment in digital optimization through AI dispatch systems and digital twin modeling, which are designed to enhance margins and operational efficiency.
Growth prospects are further supported by secular demand from AI, electrification, and reshoring, alongside favorable policy tailwinds from the Inflation Reduction Act. While CEG trades cheaply on sales, its 33.8x 2025 EPS multiple is elevated relative to peers like NextEra, Duke, and Southern, though its scale and carbon-free focus justify a premium. With EPS growth forecast at 9.1% in FY25 and 18% in FY26, CEG offers a compelling combination of stability, growth, and strategic positioning in clean energy despite near-term technical downside risks.
Previously we covered a bullish thesis on Constellation Energy Corporation (CEG) by jackandjillonthehill in March 2025, which highlighted margin expansion, strong ROE, and undervaluation despite nuclear power volatility. The company’s stock price has appreciated approximately by 47% since our coverage. This is because rising demand and higher pricing played out. The thesis still stands as Oliver | MMMT Wealth shares a similar but emphasizes on strategic growth drivers.
Constellation Energy Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held CEG at the end of the second quarter which was 83 in the previous quarter. While we acknowledge the potential of CEG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.