Jim Cramer on Constellation Energy: “The Fact Is That When the President Gets Involved, It’s Too Uncertain”

Constellation Energy Corporation (NASDAQ:CEG) is one of the stocks Jim Cramer recently looked at. A caller mentioned that they got out of the stock as it started to decline after President Trump’s comments regarding an electricity rate cap. In response, Cramer said:

You know, it’s funny, I was… going to tell you it’s Constellation or Vistra. I mean, the fact is that when the president gets involved, it’s too uncertain. You’ve got a really big gain in the stock, and it’s time to move on. We’ll find other winners, I promise.

Photo by Matthew Henry 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. During the January 8 episode, Cramer noted why big hyperscalers love the company, as he stated:

Let’s go under the hood and figure out the method behind the market’s madness… Constellation Energy, the independent power producer… The big hyperscalers are obsessed with clean energy. That’s why they’re in love with Constellation Energy, CEG, which is the nation’s most visible nuclear-powered utility. It’s as clean as it gets if you want reliable electricity. Constellation’s been loved to the point where the stock is up over 175% over the last 2 years. Stock seems invincible. Sells for 28 times this year’s earnings, which is pretty darn pricey, especially for a utility… So what’s happening this year? Constellation Energy stock has already fallen from $353 to $322. I see no signs of this stock bottoming. To me, it looks dangerously expensive… In short, the value of the two constellations got out of whack.

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Disclosure: None. This article is originally published at Insider Monkey.