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Green stocks: Eyes on this turbine giant with a strong tailwind into the future

Green stocks: Eyes on this turbine giant with a strong tailwind into the future
Bogdan Stojkov

When speaking about green stocks and renewable energy, a certain company stands out with the potential to harness these winds and power a cleaner, greener future. Constellation Energy Corporation (NASDAQ: CEG) emerges as a key player in the renewable energy landscape, poised for significant growth and impact. In this piece, we’ll delve into why this turbine giant deserves a closer look and why it might be a promising addition to your investment portfolio.

The state of renewable energy

In recent years, the renewable energy sector has witnessed both triumphs and trials. While solar energy experienced positive growth, the wind energy sector grappled with various challenges. Rising costs for materials, labor, and capital, coupled with delays in project execution, posed significant hurdles for wind energy projects.

However, amidst the mentioned challenges, the sector found solace in the form of new clean energy and climate legislation, which injected fresh momentum into the supply chain.

Driving forces for renewables

Federal investments in clean energy, coupled with mounting pressure from both public and private sectors to decarbonize, serve as driving forces propelling renewables forward. These factors not only pave the way for overcoming existing obstacles but also play a pivotal role in meeting ambitious climate targets set forth by organizations like Deloitte.

  • Federal investments in clean energy;
  • Increasing demand for decarbonization from both public and private sectors;
  • Fresh momentum injected by new clean energy and climate legislation.

As we navigate through 2024, the renewable energy landscape is poised for varying speeds of growth across different technologies, industries, and markets.

Projections and investments

According to projections by the Energy Information Administration, renewable deployment is expected to witness a significant uptick in 2024, with a forecasted growth of 17%, reaching 42 gigawatts. This surge is anticipated to account for nearly a quarter of electricity generation.

What’s more, investments in clean energy technology are on the rise, with projections nearing $800 billion in 2024. Solar energy is expected to lead the pack, commanding the largest share of investment, followed closely by onshore wind.

Cost dynamics

Despite challenges from rising costs in sectors like offshore wind and hydrogen energy, decreasing raw material prices provide a silver lining. This trend is anticipated to drive down the average cost of clean energy technologies further.

Key points to note include:

  • Solar and battery costs have notably decreased since 2022;
  • Projections indicate a dip below 2020 levels by 2024.

Constellation Energy Corporation (NASDAQ: CEG)

Constellation Energy Corporation (NASDAQ: CEG) stands tall as a prominent producer and distributor of electricity across the United States.

With operations spanning five key segments—Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions—the company boasts an impressive portfolio comprising over 32,000 megawatts of generating capacity. This capacity is derived from a diverse array of assets including nuclear, wind, solar, natural gas, and hydroelectric sources.

Constellation Energy Corporation stock price today

As of March 22, 2024, Constellation Energy Corp’s stock price stands at $174.31, marking a 0.90% decrease, equivalent to a $1.58 downtick year to date.

Financial performance

On November 6, Constellation Energy Corporation (NASDAQ: CEG) reported robust quarterly and full-year financial results, surpassing market expectations.

Constellation Energy’s stock surged due to:

  • Strong quarterly and full-year results exceeding expectations;
  • Reported adjusted EBITDA of $4.02 billion, up over 50% from 2022;
  • Operational excellence with a nuclear plant capacity factor exceeding 95%.

Optimistic forward guidance included:

  • Anticipated 10% annual growth in base earnings;
  • Rising demand and preference for nuclear power;
  • Impact of nuclear Production Tax Credits (PTCs), establishing a price floor for power.

Investor sentiment

Despite fluctuations in investor sentiment, the company continues to garner interest from prominent investors. Notably, William B. Gray’s Orbis Investment Management emerged as the largest shareholder, holding 6.15 million shares valued at $718.88 million.

Hedge fundNumber of shares heldValue (in million $)
William B. Gray’s Orbis Investment management6.15 million$718.88
Table 1: Hedge fund sentiment

Is Constellation Energy a good buy?

With a robust portfolio of renewable energy assets and a track record of financial resilience, Constellation Energy Corporation presents a compelling investment opportunity for those seeking to ride the winds of change in the renewable energy landscape. As the global commitment to decarbonization gains momentum, the company appears poised to soar to new heights, fueled by a strong tailwind into the future.

Investors eyeing sustainable growth and environmental impact would be wise to keep a close watch on this turbine giant as it navigates through the dynamic terrain of renewable energy.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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