Constellation Energy Partners with Microsoft, Forecasts 10%-13% EPS Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16h ago
0mins
Source: Fool
- Nuclear Partnership Opportunity: Constellation Energy's agreement with Microsoft to revive the Three Mile Island nuclear plant is expected to provide 835 megawatts of power for Microsoft's data centers, driving projected annual EPS growth of 10%-13% for the company.
- Stable Revenue Growth: Constellation has achieved a 3.14% compound annual growth rate in revenue over the past three years, and despite a modest dividend yield of 0.5%, the company has increased its dividend for three consecutive years, reflecting strong financial performance and commitment to shareholders.
- Renewable Energy Expansion: NextEra Energy's partnership with Alphabet to bring the Duane Arnold Energy Center back online is projected to drive an 8% CAGR in EPS, with a robust 9.85% revenue CAGR over the past three years, indicating strong growth potential.
- Surging Market Demand: Duke Energy's facilities in North and South Carolina are strategically located, with Virginia's electricity demand expected to grow by 153% by 2040, providing Duke with significant market opportunities and contributing to a 5.29% revenue CAGR over the past three years.
Analyst Views on DUK
Wall Street analysts forecast DUK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DUK is 136.31 USD with a low forecast of 126.00 USD and a high forecast of 150.00 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.
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 117.710
Low
126.00
Averages
136.31
High
150.00
Current: 117.710
Low
126.00
Averages
136.31
High
150.00
About DUK
Duke Energy Corporation is an energy holding company. The Company operates through two segments: Electric Utilities and Infrastructure (EU&I) and Gas Utilities and Infrastructure (GU&I). The EU&I segment conducts operations primarily through the regulated public utilities of Duke Energy Carolinas, Duke Energy Progress, Duke Energy Florida, Duke Energy Indiana and Duke Energy Ohio. EU&I provides retail electric service through the generation, transmission, distribution, and sale of electricity to customers within the Southeast and Midwest regions of the United States. The GU&I segment conducts natural gas operations primarily through the regulated public utilities of Piedmont, Duke Energy Ohio, and Duke Energy Kentucky. GU&I serves residential, commercial, industrial, and power generation natural gas customers, including customers served by municipalities who are wholesale customers. It also purchases a diverse portfolio of transportation and storage services from interstate pipelines.
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.
