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Constellation Energy Corporation (CEG) Soars 8.4%: Is Further Upside Left in the Stock?

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Constellation Energy Corporation (CEG - Free Report) shares rallied 8.4% in the last trading session to close at $214.63. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 7.9% loss over the past four weeks.

Constellation Energy is the largest owner of nuclear plants in the US and produces clean electricity for its customers. It expects to invest nearly $5.1 billion during 2024-2025 period to strengthen its infrastructure and purchase of nuclear fuel, essential for operation of nuclear units.

The standalone energy company is poised to benefit from the likely increase in demand for electricity from the data centers. Increasing investment in data centers will create larger date centers and electricity demand from these centers is destined to increase, as AI-based queries need substantially higher power than traditional Internet searches, music and photos.

This company is expected to post quarterly earnings of $1.88 per share in its upcoming report, which represents a year-over-year change of -26.6%. Revenues are expected to be $5.3 billion, down 2.7% 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 6.2% 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 #3 (Hold). 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. Enovix Corporation (ENVX - Free Report) , another stock in the same industry, closed the last trading session 8.7% higher at $11.39. ENVX has returned 23.2% in the past month.

Enovix Corporation's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.23. Compared to the company's year-ago EPS, this represents a change of -21.1%. Enovix Corporation currently boasts a Zacks Rank of #3 (Hold).


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