Constellation Energy Corporation (CEG) shares ended the last trading session 25.2% higher at $305.19. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2% gain over the past four weeks.
Constellation Energy’s strategic investment plans and its focus on continuing to expand its renewable portfolio drive its earnings performance. Constellation Energy continues to increase clean energy production from its nuclear fleet through organic methods and by making strategic acquisitions.
Constellation Energy recently entered in a definite agreement to acquire Calpine in a cash and stock transaction valued at an equity purchase price of approximately $16.4 billion. The company will also assume Calpine’s net debt of nearly $12.7 billion. This deal will create a large clean and reliable energy company focused on meeting the rising demand from customers. This deal will be accretive to Constellation Energy's earnings per share.
This company is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of +1572.7%. Revenues are expected to be $4.95 billion, down 14.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Constellation Energy Corporation, the consensus EPS estimate for the quarter has been revised 4.2% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CEG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Constellation Energy Corporation is part of the Zacks Alternative Energy - Other industry. Ameresco (AMRC), another stock in the same industry, closed the last trading session 5.3% lower at $25.67. AMRC has returned 7.7% in the past month.
For Ameresco
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