Is Constellation Energy Stock a Buy Now?
The share price of Constellation Energy (NASDAQ: CEG) has risen nearly 50% over the past year. The average utility stock, using the Vanguard Utilities ETF as an industry proxy, is up just 11.8% while the S&P 500 (SNPINDEX: ^GSPC) has risen roughly 12.7%. Is Constellation Energy worth buying now after such an outsize advance?
Constellation Energy generates and sells electricity. However, it does not operate within the regulated utility sector. It is an independent power producer that sells its electricity under long-term contracts to other companies and customers. This is a very different approach that exposes Constellation to market prices and vastly different supply/demand dynamics.
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Source Fool.com
