Is Constellation Stock a Buy After Jumping 12% on Google’s 20-Year Nuclear Deal?
Shares of Constellation Energy (NASDAQ: CEG) jumped from $291.11 on Oct. 6 to $309.80 the same day following the announcement of its landmark 20-year power purchase agreement (PPA) and strategic collaboration with Alphabet.
There was plenty of enthusiasm for the $4.3 billion deal, which will add 890 megawatts of new nuclear capacity through updates at 11 Constellation-owned nuclear units in Illinois, Pennsylvania, and New Jersey.
However, in the days since the announcement, Consellation stock is actually down more than 3%. The reason is that the energy stock is already trading at a high multiple relative to its peers, at more than 28 times trailing earnings and more than 23 times forward earnings.
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