Constellation Energy to Report Q3 Earnings: How to Play the Stock?

Constellation Energy Corporation CEG is expected to report third-quarter 2025 earnings on Nov. 7, before market open. The Zacks Consensus Estimate for revenues is pinned at $6.12 billion, indicating a decline of 6.53% from the year-ago reported figure. The consensus mark for earnings is pegged at $3.04 per share, indicating year-over-year growth of 10.95%. The bottom-line estimate, however, has gone down 1.62% over the past 60 days.Image Source: Zacks Investment ResearchCEG’s Earnings Surprise HistoryConstellation Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met in one, delivering an average surprise of 4.13%.Image Source: Zacks Investment ResearchWhat Our Quantitative Model PredictsOur proven model does not conclusively predict an earnings beat for Constellation Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.Constellation Energy Corporation Price and EPS Surprise Constellation Energy Corporation price-eps-surprise | Constellation Energy Corporation QuoteEarnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Zacks Rank: Currently, Constellation Energy carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.Stocks Worth a LookSome stocks from the same sector that have the combination of factors indicating an earnings beat are Granite Ridge Resources, Inc. GRNT and Delek US Holdings, Inc. DK. GRNT and DK have an Earnings ESP of +3.70% and +98.57%, respectively, and hold a Zacks Rank #3 each at present.Factors That Might Have Impacted CEG’s Q3 PerformanceConstellation Energy’s third-quarter earnings are expected to have benefited from strong commercial performance through portfolio optimization and increasing demand from an expanding customer base. CEG’s robust nuclear infrastructure enables it to fulfill the increasing demand from data centers, which is also likely to have had a positive impact on the revenues and earnings of the to-be-reported quarter.Constellation Energy's renewable energy portfolio is being actively expanded outside nuclear operations. In addition to diversifying its energy mix, this strategic focus fosters long-term earnings growth. By striking a balance between investing in renewable energy and preserving dominant nuclear capabilities, the company sets itself up for success in a changing energy market that is centered on sustainability. The third-quarter results are expected to benefit from these continuing strategic initiatives.Ongoing repurchase of shares by the company is expected to have increased the value of shareholders and might have a positive impact on earnings due to lower shares outstanding at the end of the period.CEG Stock’s Price PerformanceIn the past six months, the stock has returned 45.6% compared with the industry’s growth of 29.6%.Image Source: Zacks Investment ResearchCEG Stock Trading at a PremiumConstellation Energy is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 31.71X compared with the industry average of 23.36X.Image Source: Zacks Investment ResearchInvestment Consideration for CEGConstellation Energy’s investments in customer-focused energy solutions, including carbon-free and renewable energy certifications, are expected to have generated favorable returns and enhanced stakeholder value. Through this approach, Constellation Energy helps customers achieve their emission goals while effectively managing energy costs and consumption.With its extensive carbon-free generation fleet and comprehensive energy supply and risk management services, the company is well-positioned to capture growing demand, strengthen revenue streams and advance a more sustainable energy future.Constellation Energy’s strategic investments and ongoing expansion of its renewable portfolio continue to drive the earnings performance, a trend which is likely to have been sustained in the third quarter.Rounding UpConsidering Constellation Energy’s solid earnings growth expectations for the third quarter, stable price performance and rising demand for clean energy, existing investors may continue to hold on to this stock. However, taking into account its premium valuation, new stakeholders interested in this stock should take a cautious approach before adding the stock to their portfolio. 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Click to get this free report Constellation Energy Corporation (CEG): Free Stock Analysis Report Delek US Holdings, Inc. (DK): Free Stock Analysis Report Granite Ridge Resources, Inc. (GRNT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks