Jim Cramer on Constellation Energy: “The Earnings Have Been Fine, It’s the Zeitgeist That Matters There”

Constellation Energy Corporation (NASDAQ:CEG) was among Jim Cramer’s stock calls on Mad Money as he discussed how semiconductor and AI infrastructure stocks are driving the market higher. Cramer started his game plan with the stock, as he commented:

We need a game plan for next week, and I happen to have one… Look at this. The week starts with an energy supplier that’s no stranger to tech. It’s Constellation Energy. That’s the nuclear heavy power generator that the big tech companies, they want to use it to power the data centers because nuclear is carbon-free. The earnings have been fine. It’s the zeitgeist that matters there.

Photo by Adam Nowakowski on Unsplash

Constellation Energy Corporation (NASDAQ:CEG) produces and supplies electricity, natural gas, and sustainable energy solutions through nuclear, wind, solar, natural gas, and hydro assets. Cramer discussed the stock in light of its valuation during the February 2 episode, as he remarked:

Next, the fifth worst performer last month was Constellation Energy. It’s the independent power producer with a ton of nuclear exposure. Stock’s lost more than 20% last month. Trump administration announced a plan to make energy more affordable in the Mid-Atlantic region by calling for $15 billion in investments in new power plants, as well as caps on how much existing plants can charge for electricity. Not great. Now, I do think Constellation’s worth buying into weakness because new power plants take ages to build, and price gouging’s never been a part of their strategy. At 24 times forward earnings, you know what, I like this one.

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