Constellation Energy Shares Double in 2024: What Investors Should Know?

Following the news of its largest-ever power purchase agreement with Microsoft Corp., Constellation Energy Corp. (CEG) shares jumped in premarket trade this morning. In order to address the rising energy demands brought on by artificial intelligence, notably for Microsoft’s data centers, the energy giant located in Baltimore intends to restart its long-dormant nuclear facility at Three Mile Island.

3,400 new employment and an additional $3.0 billion in state and federal taxes will result from the restart of Unit 1. The change will also supply the grid with an additional 835 megawatts of carbon-free energy. Assuming it receives license from the Nuclear Regulatory Commission, Constellation Energy anticipates that plant to reopen in 2028.

This plant was among the safest and most reliable nuclear plants on the grid, and we look forward to bringing it back with a new name and a renewed mission to serve as an economic engine for Pennsylvania.

Joe Dominguez – the chief executive of Constellation Energy

Constellation Energy’s Future Looks Bright: Microsoft Acquisition Enhances Financial Stability

Overall, the acquisition of Microsoft will support Constellation Energy’s future financial stability. This is especially noteworthy as, in its most recent reported quarter, CEG earned $1.68 per share on an adjusted basis, compared to $1.72 per share predicted by analysts. CEO Dominguez continued to highlight the company’s carbon-free nuclear fleet’s industry-leading performance.

Despite the fact that Constellation Energy’s stock has already nearly doubled this year, Wall Street presently rates it as overweight. On CEG, however, analysts’ average price targets of $222 are almost in line with the current market price as of this writing. However, because the energy company’s shares currently yield 0.68% in dividends, income investors find them appealing.

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