Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, energy products and services specialist Constellation Energy Group (NYSE: CEG ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Constellation's business and see what CAPS investors are saying about the stock right now.
Constellation facts
| |
|
| Headquarters (Founded) |
Baltimore (1906) |
| Market Cap |
$6.45 billion |
| Industry |
Electric utilities |
| Trailing-12-Month Revenue |
$14.34 billion |
| Management |
Chairman/CEO Mayo Shattuck, III
CFO Jonathan Thayer
|
| Return on Capital (Average, Past 3 Years) |
4.6% |
| Cash/Debt |
$2.03 billion / $4.79 billion |
| Dividend Yield |
2.9% |
| Competitors |
Allegheny Energy (NYSE: AYE )
American Electric Power (NYSE: AEP )
Duke Energy (NYSE: DUK )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 943 members who have rated Constellation believe the stock will outperform the S&P 500 going forward. These bulls include SlowAndSteady123 and paradigms.
Just last week, SlowAndSteady123 touched on Constellation's rather tempting total return potential: "I'm bullish on energy in general over the next 2-3 years. ... This stock will do well for investors -- both in terms of stock appreciation and dividend."
Over the next five years, Constellation is expected to grow its bottom line at an annual pace of 9.9%. That's faster than rivals American Electric (3.9%) and Duke (4.7%), as well as other utility plays like Progress Energy (NYSE: PGN ) (4%) and Southern (NYSE: SO ) (4.9%). And it's much better than Allegheny's expected 4.5% annual contraction in net income.
CAPS member paradigms expands on the outperform case:
In many respects, [Constellation] is both a great company and a desirable business and, but as important, it's a true value. ...
Sure, [Constellation's] dividend yield ... may not be electric -- its five-year average is a touch better at 3.3% -- but all things considered, it's not bad, either. ...
[Constellation's] virtues are hard to ignore: it's dirt cheap, it's very conservatively run, and its management is doing an increasingly good job of generating more profits.
What do you think about Constellation, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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