12 Best Booming Stocks to Invest in Now

1. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holdings: 78

Year-to-Date Performance as of January 30: 37.92%

Constellation Energy Corporation (NASDAQ:CEG) is a leading energy company in the United States, known for its significant role in the operation of nuclear power plants. In January, Constellation Energy Corporation (NASDAQ:CEG) reached new heights in the stock market, driven by a strategic acquisition that positions it as the largest independent power provider in the country.

The primary driver of Constellation Energy Corporation’s (NASDAQ:CEG) stock price surge is its agreement to acquire Calpine, a leading natural gas and geothermal company. This acquisition will add significant capacity to the company’s existing portfolio and increase its total generation capacity to nearly 60 GW from zero and low-emission sources. The market has responded positively to this move, with shares closing up 25.1% on the announcement day and reaching an all-time high of $310. The acquisition is expected to add $2 billion annually to Constellation Energy Corporation’s (NASDAQ:CEG) free cash flow and is expected to provide earnings per share (EPS) accretion of more than 20% in 2026 and at least $2 per share in future years.

The acquisition of Calpine will significantly expand Constellation Energy Corporation’s (NASDAQ:CEG) presence in key markets, particularly Texas and California. These regions are expected to see substantial growth in data center expansion, which will increase the demand for reliable and sustainable energy. According to Joseph Dominguez, President and Chief Executive Officer of Constellation Energy Corporation (NASDAQ:CEG) this deal represents a significant bargain as the company is paying, at a multiple of 7.9x of Calpine’s 2026 enterprise value to EBITDA.

While we acknowledge the potential of Constellation Energy Corporation (NASDAQ:CEG) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CEG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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