Checking the Peter Lynch growth stock criteria for CONSTELLATION ENERGY (NASDAQ:CEG)

Lynch preferred companies with low P/E ratios relative to growth, manageable debt, and strong profitability. In this analysis, we see if CONSTELLATION ENERGY (NASDAQ:CEG) fits his winning formula.

Following Peter Lynch’s approach: Does CONSTELLATION ENERGY (NASDAQ:CEG) fit the bill?

• In terms of Return on Equity(ROE), CEG is performing well, achieving a 28.47% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• With a Debt/Equity ratio of 0.56, CEG demonstrates prudent financial management.
• Over the past 5 years, CEG has demonstrated 28.1 growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• With a PEG ratio of 0.65, CEG is valued very reasonably for the growth it experiences.
• CEG maintains a healthy liquidity position with a Current Ratio of 1.57.

How does the complete fundamental picture look for CEG?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall CEG gets a fundamental rating of 5 out of 10. We evaluated CEG against 46 industry peers in the Electric Utilities industry. Both the profitability and the financial health of CEG get a neutral evaluation. Nothing too spectacular is happening here. CEG has a expensive valuation and it also scores bad on growth.

Our latest full fundamental report of CEG contains the most current fundamental analsysis.

Every day, new Affordable Growth stocks can be found on ChartMill in our Peter Lynch screener.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.