We recently released a list 15 energy companies with the highest upside potential. In this article, we will look at Constellation Energy Corporation (NASDAQ:CEG) and representatives of other top energy companies.
The energy sector witnessed a huge decline in April after releasing significant gains in the first three months of 2025, largely due to the global trade war sparked by President Trump’s tariffs and the prospect of a slowdown. The overall energy sector has now fallen by 3.8% since the beginning of the year, while the broader market has fallen by about 5.8%. Not surprisingly, the decline was led by the oil and gas sector, which saw the industry fall by more than 15%.
Please read also: 11 Best Solar Inventory Purchased Based on Hedge Funds
The main reason behind this fall is the decline in global prices for crude oil due to ongoing uncertainty around global trade, fear of demand and OPEC+’s recent decision to increase supply. West Texas Intermediate crude is currently hovering at years-lower than $62, down more than 25% year-on-year. Worse, the International Energy Agency recently cut its 2025 oil demand growth forecast by 300,000 barrels per day compared to last month, warning the world to "tighten" amid escalating trade tensions.
That said, there is still a significantly bullish sector in the energy industry, and liquefied natural gas is a good example. The United States of America is already the world's largest exporter of liquefied natural gas, and exports have continued to grow over the past decade. Nevertheless, the industry is still booming after receiving strong support from the Trump administration, which has enabled the main agenda of the U.S. fossil fuel sector to boost the U.S. fossil fuel sector. According to Wood Mackenzie, a 15.5 million ton long-term LNG Offtake contract was signed in the first quarter of 2025 after a record 81 MTPA last year. A growing number of countries are looking to export U.S. liquefied natural gas to close the trade gap with the U.S., following the White House’s tariff threat, and these figures are expected to surge in the coming months.
Another important growth driver for the energy sector is the ongoing AI boom and its accompanying desires for data centers. Powered by domestic manufacturing, data centers and mass electrification, U.S. power demand is expected to increase by 35-50% by 2040, according to a study by the American Clean Power Association. The main candidate to meet this huge demand is natural gas, which is clean, reliable and abundant. According to energy data provider Enverus, a total of 80 new gas power plants could be built in the U.S. by the end of the decade. That said, natural gas is not as cheap as it was a year ago, as prices surged by about 36.6% over the past 52 weeks.
Another important candidate is nuclear energy, which has become a hot topic today, especially after the encounter of bystanders at several tech giants at the Ceraweek conference in Houston and signed a commitment to sign at least the goal of world nuclear capacity by at least 2050. Many of these companies have signed contracts with nuclear energy providers to get their data to enter into efforts with Jeff be kept bate Bate Beaim nation Beabiant.
As the sun sets, the wind turbine generates electricity.
To collect the data from this article, we examined companies operating in the energy sector and compiled a list of stocks with the highest upside potential, with Wall Street analysts having the highest gains as of April 28, 2025. To make our list relevant, we only include companies with a market capitalization of $10 billion and above. The following is Energy companies with the highest potential for growth.
At Insider Monkey, we are addicted to the stocks accumulated by hedge funds. The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small and large stocks quarterly, returning 275% since May 2014, surpassing its benchmark point by 150 percentage points (see more details here).
As of April 28: 28.8% upward potential
Constellation Energy Corporation (NASDAQ:CEG) is the largest carbon-free energy producer in the United States, producing about 34.2 GW, enough to power 16 million homes and businesses.
Constellation Energy Corporation (NASDAQ:CEG) reported better results for the fourth quarter 2024 than expected. Its expected maximum of $0.3 for its adjusted EPS $2.44, benefiting from lower spending and increased demand for electricity. The company's $5.38 billion revenue also reached $637.3 million from an estimated $637.3 million, although it fell 7.14% year-on-year. Additionally, Constellation Energy's operating margin has increased from 10% to teenagers, with an impressive ROE of 30%, significantly surpassing traditional utilities struggling to exceed 10% ROE. The company also repurchased $1 billion in common stock in fiscal 2024, in addition to increasing its annual dividend by 25%.
To expand its portfolio, Constellation Energy Corporation (NASDAQ:CEG) announced in January that it had agreed to acquire gas and geothermal company Calpine Corp for $26.6 billion, one of the largest batches in the U.S. power industry. Citigroup also highlighted the upward potential of CEG earlier this month, when they raised the company from neutral prospects to a target of buying at a price of $232.
At the end of the fourth quarter 2024, there were 17 billionaire holders in the insider monkey database, including Constellation Energy Corporation (NASDAQ:CEG) According to billionaires, 10 best nuclear energy stocks to buy.
Overall, CEG Ranked 15th On our list of top energy companies with the highest upside potential. Although we acknowledge the potential of CEG as an investment, our belief is that AI stocks have greater hope and provide higher returns in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than CEG but have less than 5 times its earnings, check out our report Cheapest AI stocks.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Inside monkey.