Was Jim Cramer Right Choosing Constellation Energy (CEG) Over Vistra Last Year?

We recently published a list of Jim Cramer Nailed These 11 Stock Predictions. In this article, we are going to take a look at where Constellation Energy Corporation (NASDAQ:CEG) stands against other stocks that Jim Cramer discusses.

Cramer brought up Constellation Energy Corporation (NASDAQ:CEG) in the same segment as a key peer to Vistra. Back then, he explained why he still favored Constellation, highlighting its purer nuclear focus, longer-term stability, and his deeper familiarity with the company’s management and performance history. Here are his remarks from back then:

“Right now, we’re in the midst of an enormous AI infrastructure buildout… meaning tons and tons of data centers that practically devour electricity… and that’s where the independent power producers come in—especially the ones that can provide clean energy like Vistra or Constellation Energy. […]

If you made me choose between the two, you know what? I’d still stick with Constellation Energy, despite the valuation disparity, simply because I’m more familiar with the story. […]

I’ve spoken to the management team a few times since I started pounding the table on the stock in early 2022. […] Constellation is much closer to being a pure play on nuclear energy, which I really care for. […] Constellation’s gradual move higher looks more sustainable than the parabolic move we’ve seen in Vistra.”

A close up of a wind turbine producing electricity as the sun sets.

Although CEG did not outperform Vistra, it’s still up by 51.22%, making this a great call.

Constellation Energy Corporation (NASDAQ:CEG) is a leading clean energy provider that generates electricity from nuclear, solar, wind, and hydro sources for residential and commercial customers.

Cramer recently advised against owning energy stocks due to Microsoft’s decision to close down some data centers. Here’s what he said in April:

“Now, see, I never really, really care right now, honestly for the energy trade, because then Microsoft will say that it’s closing a data center. No one will like the group. So let’s stay away from the energy trade. It’s too much second derivative, so to speak.”

Overall, CEG ranks 2nd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of CEG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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