Constellation Energy Acquires Calpine, Solidifying Position as Largest Power Producer
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Acquisition Completed: Constellation Energy has completed the acquisition of Calpine, becoming the largest electricity producer in the U.S., further solidifying its leadership position in the rapidly growing power market.
- Market Performance Decline: Despite a 280% stock price increase over the past three years, Constellation Energy's stock has dropped about 15% since October 2025, indicating a weak performance relative to the market.
- High Valuation: Constellation Energy's current price-to-earnings ratio is nearly 38 times, significantly higher than the S&P 500's 28 times and the average utility's 22 times, suggesting that the market's expectations for future growth may be overly optimistic.
- Cautious Outlook: While the company is well-positioned in the nuclear power sector, the current high valuation suggests that investors should remain on the sidelines until the stock price corrects to mitigate potential investment risks.
Analyst Views on CEG
Wall Street analysts forecast CEG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CEG is 412.82 USD with a low forecast of 350.00 USD and a high forecast of 520.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 341.200
Low
350.00
Averages
412.82
High
520.00
Current: 341.200
Low
350.00
Averages
412.82
High
520.00
About CEG
Constellation Energy Corporation is a producer of emissions-free energy and an energy supplier to businesses, homes and public sector customers nationwide. The Company’s nuclear, hydro, wind, and solar generation facilities have the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation’s clean energy. Its segments include Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. Through its integrated business operations, it sells electricity, natural gas, and other energy-related products and sustainable solutions to various types of customers, including distribution utilities, municipalities, cooperatives, commercial, industrial, public sector, and residential customers in markets across multiple geographic regions. It operates approximately 55 gigawatts of capacity from nuclear, natural gas, geothermal, hydro, wind and solar facilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
