Here is Why Constellation Energy (CEG) is Among the Best Utility Stocks to Buy Now According to Hedge Funds

Constellation Energy Corporation (NASDAQ:CEG) is included among the 12 Best Utility Stocks to Buy Now According to Hedge Funds.

Here is Why Constellation Energy (CEG) is Among the Best Utility Stocks to Buy Now According to Hedge Funds

Photo by Frédéric Paulussen on Unsplash

Constellation Energy Corporation (NASDAQ:CEG) is the largest provider of clean, low-carbon energy in the United States. The company also operates the largest fleet of nuclear facilities in the country.

On June 24, Morgan Stanley upped its price target on Constellation Energy Corporation (NASDAQ:CEG) from $359 to $364, while maintaining its ‘Overweight’ rating on the stock. The target boost reflects a significant upside of almost 38% from the current levels.

The analyst firm refreshed its valuation estimates for North American regulated utilities, diversified utilities, and independent power producers (IPPs) in its latest sector update. The firm noted that utility stocks significantly underperformed the broader market in May, with the sector falling by 5.5% while the overall S&P gained roughly 5.1% during the month.

Constellation Energy Corporation (NASDAQ:CEG) also made headlines on June 23 when the company signed a long-term deal with Walmart to provide electricity from its Dresden Clean Energy Center in Illinois, marking the retail behemoth’s first purchase of nuclear energy. While nuclear has been high in demand by data center operators, the agreement with Walmart indicates that other sectors are also now interested in clean energy that is available around the clock.

While we acknowledge the risk and potential of CEG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CEG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Best Electrical Infrastructure Stocks to Buy in 2026 and 12 Best American Oil Stocks to Buy Now

Disclosure: None. Follow Insider Monkey on Google News.

1281292 - 11759070 - 1