Peet Serfontein & Khumbulani Kunene
We enter a long position with a target price of $474.00 and a stop-loss of $310.00.
Constellation Energy Corporation is a leading American energy provider specialising in carbon-free power generation, nuclear energy operations and large-scale clean-energy solutions for commercial, industrial and residential customers. Constellation Energy serves homes, institutional customers, public sectors, community aggregations, and businesses in the United States.
The company is set to continue benefitting from strong growth in AI as it can provide carbon-free base power (nuclear) to satisfy the high energy demands of the data centres required to support the thematic.
Technically, the price is in the Accumulation phase of the Wyckoff Price Cycle (see the insert on the main chart). In this phase, smart money and institutional investors are entering positions and are quietly absorbing supply from weaker holders. This phase reflects a transition from distribution-driven weakness to demand-driven stability.
Stepwise support also lends bullish support to the stock (see the black trendlines marked with Step one and two on the chart). This pattern highlights a market that is consistently forming higher support levels after each pullback, indicating that buyers are stepping in earlier than before.
The MACD histogram appears to have reached a downside trough, and the recent volatile upward-sloping trajectory of the on-balance volume (OBV) indicator also supports our bullish view.
| Share Information | |
|---|---|
| Share Code | CEG |
| Industry | Utilities |
| Market Capital (USD) | 110.62 billion |
| One Year Total Return | 43.04% |
| Return Year-to-Date | 59.16% |
| Current Price (USD) | 345.41 |
| 52 Week High (USD) | 412.70 |
| 52 Week Low (USD) | 161.35 |
| Financial Year End | December |
| The price remains above its 200-day simple moving average (SMA), which also supports the bullish case for the stock. | |
| Consensus Expectations (Bloomberg) | ||||
|---|---|---|---|---|
| FY24 | FY25E | FY26E | FY27E | |
| Headline Earnings per Share (USD) | 8.68 | 9.28 | 11.44 | 13.14 |
| Growth (%) | 6.85 | 23.35 | 14.86 | |
| Dividend Per Share (USD) | 1.41 | 1.54 | 1.68 | 1.85 |
| Growth (%) | 9.36 | 9.14 | 9.63 | |
| Forward PE (times) | 38.17 | 30.95 | 26.94 | |
| Forward Dividend Yield (%) | 0.44 | 0.48 | 0.52 | |
| The company is set to achieve strong double-digit earnings growth in the medium-term. | ||||
Buy/Sell Rationale:
Technical Analysis:
Fundamental view:
| Share Name and Position | ABNB - Stop loss (Close the position) |
PRU - Buy (Continue to hold) |
PODD - Buy (Continue to hold) |
ETN - Buy (Continue to hold) |
|---|---|---|---|---|
| Entry | 122.89 | 105.04 | 333.47 | 334.86 |
| Current Price | 111.54 | 107.19 | 337.53 | 330.43 |
| Movement | -9.2% | +2.0% | +1.2% | -1.3% |
| Comment | The stock hit our stop-loss level, prompting us to close the position. | Fisher Transform momentum signal remains of interest. Testing its 200-day SMA. Target: $116.00 | Trailing stop-loss: $102.70. | Rising channel remains of interest. Above 200-day SMA. Target: $400.00 | Trailing stop-loss: $310.00. | Developing Elliott Wave b wave. Testing 200-day SMA. Downside momentum a concern. Target: $395.00 | Trailing stop-loss: $311.00. |
| Time to exit | 4 February 2026 | 3 March 2026 | 28 April 2026 |
| Share Name and Position | KR - Buy (Continue to hold) |
BSX - Buy (Continue to hold) |
OTIS - Buy (Continue to hold) |
|---|---|---|---|
| Entry | 66.88 | 102.50 | 91.43 |
| Current Price | 64.29 | 98.04 | 86.96 |
| Movement | -3.9% | -4.4% | -4.9% |
| Comment | Rising wedge pattern developing. Below 200-day SMA. Target: $76.00 | Trailing stop-loss: $63.30. | DPO remains of interest. Below 200-day SMA. Target: $118.00 | Trailing stop-loss: $96.30. | Symmetrical triangle pattern. Below 200-day SMA. Counter-trend idea. Target: $100.00 | Trailing stop-loss: $88.00. |
| Time to exit | 26 January 2026 | 20 February 2026 | 17 December 2025 |
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