Is Constellation Energy Stock a Buy Now?
Constellation Energy (NASDAQ: CEG) hails from the utility sector, but it is not a regulated utility business. That changes the equation for investors in a fairly material way. With the stock down around 15% from its 52-week high, is now the time to step aboard this independent power producer?
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Regulated utilities tend to be fairly boring and consistent businesses. They are granted monopolies in the regions they serve, and in exchange, they submit to government oversight of the rates they charge customers and their capital investment plans. The goal of regulators is to strike a balance between costs, reliability, and investor returns. The usual outcome is a slow and steady business that pays an attractive dividend.
Source Fool.com
