Constellation Energy Corporation (CEG) Falls More Steeply Than Broader Market: What Investors Need to Know

Constellation Energy Corporation (CEG) closed the most recent trading day at $307.92, moving -4.6% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.11%. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq lost 0.82%.

Coming into today, shares of the company had gained 2.98% in the past month. In that same time, the Oils-Energy sector gained 4.89%, while the S&P 500 gained 5.17%.

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The investment community will be paying close attention to the earnings performance of Constellation Energy Corporation in its upcoming release. The company's earnings per share (EPS) are projected to be $2.05, reflecting a 22.02% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.2 billion, indicating a 5.02% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.45 per share and revenue of $23.99 billion. These totals would mark changes of +9% and +1.8%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Constellation Energy Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. Currently, Constellation Energy Corporation is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Constellation Energy Corporation is holding a Forward P/E ratio of 34.14. This represents a premium compared to its industry average Forward P/E of 19.87.

We can additionally observe that CEG currently boasts a PEG ratio of 2.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Alternative Energy - Other industry held an average PEG ratio of 2.32.

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The Alternative Energy - Other industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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