Among the top energy companies with the highest potential
Recently, I’ve published a list of Top 15 energy companies with the highest potential. In this article, we look at where Constellation Energy Corporation (NASDAQ:CEG) plays against other top energy companies.
After recording notable profits in the first three months of 2025, the energy sector witnessed a massive decline in April, mainly due to the ongoing global trade war caused by President Trump’s tariffs and the outlook for a slowdown. Currently, the energy sector as a whole has declined by about 3.8% since the start of the year and about 5.8% in the wider market. Naturally, the recession is led by the oil and gas sector, which is over 15% above YTD.
The main reason behind this fall is the decline in global prices for crude oil, caused by global trade, fear of demand, and the continued uncertainty surrounding OPEC+’s recent decisions. West Texas intermediate crude prices are currently hovering at a year-over-year low level of less than $62 within a few years, at over 25%. Worse, the International Energy Agency has recently cut its 2025 oil demand growth forecast to 300,000 barrels per day compared to last month, warning the world to “buckle” amid trade tensions.
That said, there is a sector that is still quite bullish in the energy industry, with liquefied natural gas being a prime example. The United States is already the world’s largest LNG exporter, and exports have grown consistently over the past decade. Still, the industry continues to thrive after receiving a lot of support from the Trump administration, which has helped the US fossil fuel sector boost its major agenda. According to Wood Mackenzie, a long-term LNG offtake contract of 15.5 million tonnes per year (MTPA) was signed in the first quarter of 2025, following a record 81 MTPA last year. These figures are expected to surge in the coming months after more and more countries are trying to export US LNG to reduce the trade gap with the US following the White House tariff threat.
Another important growth driver in the energy sector is the ongoing AI boom and its accompanying power-hungry data centers. According to a study by the American Clean Power Association, U.S. electricity demand is expected to surge by 35-50% by 2040, driven by domestic manufacturing growth, data centers and mass electrification. The main candidates to meet this enormous demand are clean, reliable, and abundant natural gas. By the end of the decade, a total of 80 new gas power plants could be built in the United States, according to the Energy Data Provider Enverus. That said, natural gas isn’t as cheap as a year ago, as prices have risen by around 36.6% over the past 52 weeks.
Another important candidate is nuclear energy. It has recently emerged as a hot topic, especially after several high-tech giants, who are bystanders at the Theraweek Conference in Houston, signed a pledge to support the goal of tripling the world’s nuclear power capabilities by 2050.
Constellation Energy Corporation (CEG): Among the top energy companies with the highest potential
A close-up of a wind turbine that generates electricity as the sun sets.
To collect the data for this article, as of April 28, 2025, Wall Street analysts have investigated companies operating in the energy sector and compiled a list of stocks with the greatest potential for rising. Below is Energy company with the highest potential.
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Possibility of an increase as of April 28th: 28.8%
Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of carbon-free energy in the United States with a production capacity of approximately 34.2 GW, and is sufficient to drive 16 million homes and businesses.
Constellation Energy Corporation (NASDAQ:CEG) reported better results than expected in the fourth quarter of 2024. The company’s revenues beat an estimated $633.73 million, despite a 7.14% decline from the previous year. Furthermore, the operating margin of Constellation Energy has increased from 10% to teenagers; Impressive A 30% ROE is significantly outweighing traditional utilities that struggle to surpass 10% ROE. The company also bought back $1 billion in common stock in 2024, in addition to increasing its annual dividend by 25%.
In a key move to expand its portfolio, Constellation Energy Corporation (NASDAQ:CEG) announced in January it agreed to acquire natural gas and geothermal company Calpine Corp for $26.6 billion, marking one of the biggest acquisitions in the US electricity industry. The potential for CEG’s upside was highlighted earlier this month by Citigroup. They upgraded the company’s outlook from neutral to buy with a price target of $232.
Overall, CEG 15th place A list of top energy companies with the highest potential. We acknowledge the potential as an investment in CEG, but our conviction lies in the belief that AI stocks provide higher returns and hold a greater promise to do so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than CEG, but are trading under 5x revenue, check out our report on this Cheapest AI stocks.
