Goldman Sachs’ 35 AI Superstars

14. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 78 

Constellation Energy Corporation (NASDAQ:CEG) generates and sells electricity in the United States. The case for investing in this company is strong due to several factors. One of them is the company’s strong earnings growth and ability to deliver consistent profitability, portraying a compelling opportunity as illustrated in the fiscal year quarterly reports of 2024. In the third quarter of 2024, the reported GAAP net income was $3.82 per share, and adjusted (non-GAAP) operating earnings of $2.74 per share, showing strong profitability under standard accounting measures and excluding non-recurring items. In the second quarter of 2024, GAAP net income was $2.58 per share, with adjusted operating earnings of $1.68 per share. In the first quarter of 2024, GAAP net income stood at $2.78 per share, with adjusted operating earnings of $1.82 per share, reflecting a strong start to the year. Moreover, the company plans to acquire Calpine in a cash and stock transaction valued at an equity purchase price of approximately $16.4 billion, composed of 50 million shares of Constellation stock and $4.5 billion in cash plus the assumption of approximately $12.7 billion of Calpine net debt. This agreement would create the nation’s largest clean energy provider, opening opportunities to serve more customers coast-to-coast with a broader array of energy and sustainability products.