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Should You Forget NextEra Energy and Buy This Nuclear Stock Instead?

The Motley Fool · 1d ago

Key Points

  • Constellation Energy's stock has fallen more than 25% year to date.

  • Constellation operates the most nuclear facilities in the U.S. and is expanding.

Admittedly, I am quite bullish on NextEra Energy (NYSE: NEE), and for dividend investors, it has long been a favorite. Yet today I'll make the case for Constellation Energy (NASDAQ: CEG) as potentially the better long-term buy. Here's why.

Constellation operates the most nuclear-energy-producing facilities in the U.S. Data centers require power nonstop, and Constellation can meet those needs with its carbon-free, around-the-clock nuclear capabilities. While NextEra is moving into nuclear as well, the process to get up and running takes time, and Constellation is already there.

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Constellation Energy and NextEra Energy logos on blue backdrops.

Image source: The Motley Fool.

Constellation's financials are strong, and its second-quarter revenue reached $7.5 billion, a 23% increase from the year prior. Management also raised its full-year guidance for adjusted operating earnings to a range of $11.50 to $12.50 per share.

Constellation's footprint is also expanding. This September, the company agreed to purchase a gas plant in Rhode Island that will add 609 megawatts of capacity. The plant also comes complete with a 15-year purchase agreement with Toyota.

Constellation's stock has stumbled despite the positive news, falling more than 25% in 2026 as of this writing. With shares trading around $260, Wall Street's consensus average price target of $347 implies significant growth potential ahead.

In my mind, NextEra is more of an income investment, and Constellation is more growth-oriented. While Constellation does have a dividend, the yield is less than 1%. NextEra is a solid choice for most portfolios, but I really see a strong upward trajectory ahead for Constellation.

The stock's decline this year creates an attractive entry point for long-term investors.

Catie Hogan has positions in NextEra Energy. The Motley Fool has positions in and recommends Constellation Energy and NextEra Energy. The Motley Fool has a disclosure policy.