What Caused Constellation Energy Stock To Surge By 80%?

Constellation Energy (CEG) experienced a remarkable increase of 76%, driven not only by a slight rise in revenue but also by a significant spike in the P/E ratio and a squeeze in margins. Behind the scenes are pivotal developments: a transformative partnership with Meta, a strategic acquisition of Calpine, optimistic endorsements from analysts, and a rapidly increasing demand for both AI and nuclear energy—altering its prospects in real time.

What is going on in this situation? The stock soared by 76%, propelled by a 5.3% rise in revenue, a 24% decline in margins, and an impressive 118% increase in the P/E ratio. Let’s delve into the factors that contributed to these changes.

Prior to examining the specific events that prompted the surge in stock price, it’s worth noting what market insight reveals: Trefis collaborates with Empirical Asset Management – a wealth management firm in the Boston area – whose asset allocation strategies delivered favorable returns during the 2008-09 downturn when the S&P plummeted by over 40%. Empirical integrated the Trefis HQ Portfolio into its asset allocation strategy to offer clients enhanced returns with reduced risk in comparison to the benchmark index; presenting a much smoother ride, as reflected in HQ Portfolio performance statistics.

This Is Why Constellation Energy Stock Moved

• Meta Power Deal: CEG shares rose in June 2025 following a partnership with Meta Platforms for electricity from its Clinton nuclear facility.
• Calpine Acquisition: The $16.4 billion acquisition of Calpine is progressing, with an anticipated closing in Q4 2025, which will enhance capacity and earnings.
• Positive Analyst Ratings: Numerous firms have assigned ‘Buy’/‘Outperform’ ratings and increased price targets as of October 2025.
• Strong Earnings: Q1 2025 reported robust GAAP and adjusted operating earnings, with positive forecasts for Q2.
• AI & Nuclear Demand: Increasing demand for clean energy driven by AI data centers and supportive nuclear policies has contributed to growth.

Our Current Assessment of CEG Stock

Opinion: At present, we consider CEG stock to be unattractive. What’s the reason? Check out the comprehensive story. Read Buy or Sell CEG Stock to understand what informs our current perspective.

Risk: An effective way to measure risk is by analyzing how much CEG declines in significant market crashes. During the Inflation Shock, it fell approximately 24%. Although that’s less severe than some other crises, it demonstrates that even strong stocks can suffer when the market experiences downturns. No stock is immune to abrupt shocks, regardless of its fundamentals.

Consistently selecting winners is challenging – particularly due to the volatility associated with individual stocks. Alternatively, the Trefis High Quality (HQ) Portfolio, which consists of 30 different stocks, has a proven record of significantly outperforming the S&P 500 over the last four years. What accounts for this success? Collectively, HQ Portfolio stocks have delivered superior returns with lower risk than the benchmark index; providing a more stable investment experience, as illustrated by HQ Portfolio performance data.