10 Trending AI Stocks on Wall Street

4. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 83

Constellation Energy Corporation (NASDAQ:CEG) is one of the 10 Trending AI Stocks on Wall Street. On October 8, Seaport Global Securities analyst Angie Storozynski upgraded the stock to “Buy” from Neutral.

The firm quoted rising cash flows among thermal independent power producers (IPPs) and the company’s pending acquisition of Calpine behind the stock upgrade. It noted how thermal IPP cash flows are on the rise “thanks to higher power and capacity prices, lower interest rates and no cash taxes.”

It also anticipates more DC power deal announcements, supplementary M&A and positive earnings revisions for thermal IPPs before the end of 2025.

“The Calpine merger should close within the next 30 days, we assume, and given our updated estimates for CEG + Calpine and CEG’s relative underperformance vs. its IPP peers over the last 12 months, we would want to be long CEG into its refreshed earnings update, especially if it were to coincide with another DC deal. The Calpine merger won’t qualify for bonus depreciation under the OBBB, but maintenance and growth capex (nuclear restart plus uprate) of both companies together with nuclear fuel purchases should be enough to largely shield CEG’s growing EBITDA from cash taxes. Based on our updated estimates proforma Calpine, CEG trades at 10.3x 2027 EV/EBITDA and a 7.7% 2027 FCF yield. The multiples are still rich vs. those of VST, CEG’s closest peer, but for a good reason given CEG’s size and its nuclear/gas earnings mix. We’re watching regulatory reforms of CA’s resource adequacy market, given highly elevated RA prices in Northern CA, but our model already reflects more moderate RA prices beyond 2027/2028.”

Constellation Energy Corporation (NASDAQ:CEG) is an energy provider specializing in clean, carbon-free energy solutions.