Zacks Investment Ideas feature highlights: BWX Technologies and Constellation Energy

For Immediate ReleaseChicago, IL – November 4, 2024 – Today, Zacks Investment Ideas feature highlights BWX Technologies, Inc. BWXT and Constellation Energy CEG.2 Nuclear Stocks to Buy in November for Energy and AI GrowthNuclear energy stocks have transformed into one of the hottest areas on Wall Street as investors dive into the industry ready to power the energy transition and the artificial intelligence (AI) age.See the Zacks Earnings Calendar to stay ahead of market-making news.The Bull Case for Nuclear Energy StocksNuclear energy stocks from Oklo to NuScale have soared in the last few months, driven by blockbuster deals between technology giants such as Google, Microsoft, and Amazon and nuclear energy companies.Nuclear energy is an extension of the AI trade since nuclear will play a major role in powering the energy-hungry expansion of AI.Nuclear energy provided 50% of America's carbon-free electricity in 2023, making it the most significant domestic source of clean energy.The U.S. in late 2023 headed up a coalition of countries pledging to triple nuclear energy capacity by 2050. Nuclear power plants produce maximum power more than 92% of the time, making nuclear nearly 2X more reliable than natural gas and 3X times more than wind and solar.Even though nuclear energy stocks have surged in 2024, investors still have a chance to buy in near the ground floor of the nuclear energy renaissance that will be measured in decades.Buy BWX Technologies Stock and Hold for Long-Term Nuclear Energy Growth?BWX Technologies, Inc. is set to release its Q3 FY24 earnings results on Monday, November 4.BWX Technologies is a top supplier of nuclear technologies, components, and fuel to the U.S. government that's quickly expanding its commercial nuclear power segment.BWXT is building out its Ontario production facility that's already one of the largest commercial nuclear equipment manufacturing plants in the world to "support ongoing and anticipated customers' investments in Small Modular Reactors, traditional large-scale nuclear and advanced reactors, in Canada and around the world."BWXT has landed various key commercial and governmental nuclear contracts. BWX Technologies is helping manufacture a cutting-edge micro-nuclear reactor in partnership with the U.S. Department of Defense, and the U.S. Department of Energy selected BWXT for a High-Assay Low-Enriched Uranium (HALEU) deconversion services effort to "support the civil advanced reactor marketplace."BWXT is projected to grow its adjusted EPS by roughly 6% in FY24 and FY25 on the back of 6% and 5% higher sales, respectively. BWXT has topped our EPS estimates for six quarters running and its most accurate Zacks EPS estimate for Q3 came in slightly above consensus.BWX Technologies stock has climbed 110% in the past two years, including a 60% YTD surge to crush the Zacks Tech sector and hit new highs. BWXT stock is roughly neck-and-neck with Tech over the past decade.Valuation-wise, BWXT trades at a 40% discount to its highs with a 4.3 PEG ratio (which factors in its long-term earnings growth outlook). BWXT will likely have to find support near its 21-day moving average or risk testing its 50-day—which would be a great entry point for more technically-focused investors.Long-term nuclear energy bulls might want to buy BWX Technologies for its ability to work with commercial and U.S. government clients across an array of nuclear energy segments. Plus, the company pays a dividend, and six of the eight brokerage recommendations Zacks has are "Strong Buys."Is Constellation Energy a Must-Own Nuclear Energy Stock?Constellation Energy will report its Q3 FY24 earnings results on Monday, November 4.Constellation Energy is one of the nuclear energy companies and stocks ready to play a major role in the economy and Wall Street. Constellation is the largest U.S. nuclear power plant operator, boasting over 20 reactors at roughly a dozen sites across the Midwest, the Mid-Atlantic, and the Northeast.Constellation helped usher in the AI nuclear power age when it landed its 20-year power purchase agreement with Microsoft in September. Constellation is retrofitting its current nuclear power plants to keep them running for a lot longer, reopening decommissioned plants, and venturing into next-gen nuclear power plant technologies.Constellation aims to grow through mergers and acquisitions and return capital to shareholders via buybacks and dividends. Constellation announced in early 2024 its plans to boost its dividend per share by 25% in 2024, exceeding its 10% annual growth target.The U.S. government is helping provide a price floor for nuclear power to boost the expansion of the domestic nuclear power industry. Constellation boosted its adjusted 2024 earnings guidance in early August and reaffirmed its ability to grow its adjusted earnings by at least 10% from 2024-2028.Constellation has ripped 125% higher in 2024 (4th best showing in the S&P 500) and over 400% since its 2022 IPO. CEG has dipped around 9% from its early October records. Constellation stock could face profit-taking pressure and possibly test its 50-day moving average depending on how Wall Street reacts to its report (and other near-term market moving factors).Thankfully, Constellation has already cooled off significantly to trade at roughly neutral RSI levels. Constellation's impressive long-term earnings growth outlook helps it trade at a 37% discount to its highs and 30% below the Zacks Alternative Energy industry with a 1.3 PEG ratio.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Energy Corporation (CEG): Free Stock Analysis Report BWX Technologies, Inc. (BWXT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks