Constellation Energy (NASDAQ: CEG) has seen a surge in stock price by over 40%, outperforming the S&P 500 by a wide margin. The company is the largest low-carbon energy producer in the US, with 90% of its electricity coming from carbon-free sources. It recently agreed to acquire Calpine in a $26.6 billion deal to expand its operations and diversify its portfolio.

Different from traditional utilities, Constellation Energy operates as a competitive energy supplier, selling power to utilities, commercial, and industrial customers. The company benefits from higher market prices but faces more earnings fluctuations. Recent demand for nuclear energy has boosted its stock price, with agreements secured with tech giants like Microsoft and Meta Platforms.

Constellation Energy’s earnings are expected to grow at a rate of over 10% annually through 2028, with potential acceleration from the Calpine acquisition. The company offers high-powered growth potential and robust total returns. While not on the list of the 10 best stocks to buy now, according to Motley Fool Stock Advisor, Constellation Energy’s growth trajectory remains promising for investors.

Read more at Nasdaq: What Every Constellation Energy Investor Should Know Before Buying