Constellation Energy Corporation (NASDAQ:CEG) shares are trading higher by almost 4% during Thursday’s premarket session. On Wednesday, the company penned a 20-year power purchase agreement with Amazon.com, Inc. (NASDAQ:AMZN).
Sign 20-Year Nuclear Power Deal
The long-term agreement supports the expansion and continued investment in the Calvert Cliffs Clean Energy Center, Maryland’s only nuclear plant and largest clean-energy source.
The deal will support more than $3 billion of infrastructure investment, including upgrades across the plant’s 1,790-megawatt capacity and approximately 190 megawatts of new emissions-free generation expected between 2030 and 2032.
The expansion is backed by a 20-year agreement covering 690 megawatts, including the 190-megawatt uprate, along with a retail supply agreement supporting Amazon operations across the 13-state PJM market.
Amazon’s commitment will provide Constellation with revenue visibility to relicense the plant for another 20 years and advance potential new clean-energy projects at the site.
The agreement is expected to support new reliable generation and strengthen the broader electric system.
Agreement With Toyota Motor
Last week, Constellation Energy penned a 15-year renewable energy agreement with Toyota Motor (NYSE:TM) North America to support new solar generation and Toyota’s sustainability goals.
Under the deal, Toyota will receive renewable energy certificates (RECs) generated by the Milano Solar project, developed by Ferrovial through Constellation’s Offsite Renewable (CORe) solutions.
Located in Milam County, Texas, Milano Solar has a total capacity of 203.97 megawatts, with the PPA covering a portion of its output.
To support the agreement, Constellation signed a separate long-term power purchase agreement (PPA) with Ferrovial for more than 115 megawatts of solar capacity at the Milano Solar project.
The facility is expected to generate approximately 246,000 megawatt-hours of renewable energy annually.
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CEG Earnings Preview And Analyst Price Targets
Looking further out, the next major catalyst for the stock arrives with the November 6, 2026 (estimated) earnings report.
- EPS Estimate: $3.63 (Up from $3.04 YoY)
- Revenue Estimate: $9.54 Billion (Up from $6.57 Billion YoY)
- Valuation: P/E of 24.8x (Suggests fair valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $343.36 (high: $441.00; low: $296.00) across 16 analysts. Recent analyst moves include:
- Morgan Stanley: Overweight (Raises Target to $369.00) (September 18)
- Morgan Stanley: Overweight (Lowers Target to $364.00) (August 21)
- Argus Research: Buy (Lowers Target to $325.00) (August 11)
How Constellation Energy Ranks On Growth, Value And Momentum
Below is the Benzinga Edge scorecard for Constellation Energy, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 20.17) — The stock’s recent price action has lagged, which lines up with it sitting below key moving averages.
- Value: Neutral (Score: 63.51) — Valuation looks more balanced than extreme, suggesting the market isn’t pricing it as a deep bargain or a pure high-multiple story.
- Growth: Strong (Score: 77.2) — The profile still screens as growth-leaning, which can keep buyers interested in contract wins and long-term demand visibility.
The Verdict: Constellation Energy’s Benzinga Edge signal reveals a growth-tilted setup with weak momentum, meaning the story can work, but the chart still needs to prove it. For longer-term investors, the key is whether contract-driven catalysts can help the stock reclaim the $270s–$290 area and hold it.
CEG ETF Exposure: Top Funds Holding Constellation Energy
- VanEck Utilities TruSector ETF (NASDAQ:TRUU): 6.88% Weight
- State Street Utilities Select Sector SPDR ETF (NYSE:XLU): 6.90% Weight
- Vanguard Utilities ETF (NYSE:VPU): 5.28% Weight
Significance: Because CEG carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
CEG Price Action: Constellation Energy shares were up 3.79% at $263.64 during premarket trading on Thursday, according to Benzinga Pro data.
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