Is Constellation Energy Stock a Buy Now?
Constellation Energy (NASDAQ: CEG) is not your typical utility company. Not only does it sell power outside of the regulated framework under which most utilities operate, but it is also the largest nuclear power provider in the United States. But is the stock worth buying?
That depends on what you think the future of nuclear power will be. Here are some things to consider before you add Constellation Energy to your portfolio.
Regulated utilities sell power to customers within a set area. They are granted monopolies in those areas, but they are subject to government approval of their rates and capital investment plans. Given the cost of building a utility business, this is a fair trade-off for all parties involved, including the utility, its customers, and its investors. Slow and steady growth is the norm for regulated utilities.
Source Fool.com
