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Nuclear energy is emerging as a key solution to the world's growing electricity demand and the transition to cleaner power sources. Unlike solar and wind, which rely on weather conditions, nuclear plants provide a constant, around-the-clock energy supply, ensuring uninterrupted power generation.
The energy sector is clearly undergoing a transition, with most utilities independently committing to reducing emissions in their electricity generation. Nuclear power stands out as one of the most dependable sources for producing large-scale clean energy. Nuclear plants require much less space to produce the same volume of electricity compared to other clean sources. All conventional energy sources produce waste while generating electricity. Nuclear energy is the only industry that regulates and safely stores its waste. Constellation Energy Corporation CEG and Vistra Energy Corp. VST are prominent U.S. utilities with significant nuclear operations.
Constellation Energy holds a pioneering position in clean, carbon-free power generation in the United States. It operates the largest fleet of nuclear power plants in the U.S., offering consistent, around-the-clock energy to its customers, with its average capacity factor being more than 94%. The company also issued green bonds to finance its nuclear power projects. Apart from nuclear energy, the company is also advancing in emerging areas like clean hydrogen and energy storage.
Vistra Energy is positioning itself as a key operator in the nuclear energy space. Through its acquisition of Energy Harbor in 2023, Vistra significantly expanded its nuclear portfolio, creating a new subsidiary, Vistra Vision, dedicated to zero-carbon generation. The company is also pursuing clean hydrogen initiatives tied to its nuclear operations, taking advantage of federal tax credits under the Inflation Reduction Act.
Both the above-mentioned stocks are key operators in the utility space. Let’s dive deep and closely compare the fundamentals of the two stocks to determine which one is a better investment for investors.
CEG & VST’s Earnings Growth Projections
The Zacks Consensus Estimate for Constellation Energy’s 2025 and 2026 earnings reflect year-over-year growth of 8.3% and 18.8%, respectively. Long-term (three to five years) earnings growth per share is pegged at 12.46%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Vistra Energy’s 2025 earnings indicates a year-over-year decline of 18% and year-over-year growth of 26.2% in 2026. Long-term earnings growth per share is pegged at 21.75%.