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Is Constellation Energy Stock a Buy Now?

The Motley Fool Logo The Motley Fool By Reuben Gregg Brewer
Is Constellation Energy Stock a Buy Now?

Constellation Energy, a leading independent power producer with significant nuclear power capabilities, is performing well financially but may be overvalued. The company is acquiring Calpine Group and benefits from rising electricity demand, particularly from data centers and electric vehicles.

Insights
CEG   neutral

Strong business performance and strategic growth potential, but currently overpriced with a high P/E ratio of 40x and low dividend yield of 0.4%. Recommended to keep on a watchlist rather than immediately buying.