Constellation Energy experienced a 17% price decline over the last week, coinciding with a tumultuous period for stocks broadly. The company's shares were impacted as markets saw a sharp downturn, with the S&P 500 shedding 9% amid escalating trade tensions following the U.S. announcement of sweeping tariffs. The resulting economic uncertainty weighed heavily on energy stocks like Constellation Energy, aligning with a broader sector decline as oil prices fell substantially due to increased output and concerns over global economic growth. This market turbulence has, therefore, understandably put pressure on the company's stock performance recently.

We've spotted 3 warning signs for Constellation Energy you should be aware of, and 1 of them shouldn't be ignored.

AI is about to change healthcare. These 26 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Despite recent market turbulences, Constellation Energy has delivered a total return of 174.26% over the past three years, alongside noteworthy growth in its nuclear energy initiatives. This substantial return highlights the company's resilience and substantial achievements throughout this period. The restart of the Crane Clean Energy Center and plans for nuclear generation expansion by 1,000 megawatts are crucial contributors to this impressive performance. Furthermore, Constellation Energy's participation in a $1 billion project for a nuclear-powered hydrogen facility demonstrates its commitment to innovation in sustainable energy, potentially enhancing future revenue streams.

Throughout this period, Constellation Energy has also managed significant shareholder returns through stock buybacks, totaling 16.08 million shares between 2023 and 2024, amounting to US$1.96 billion. However, the company underperformed the US Electric Utilities industry in the last year. Still, its earnings growth of 131% exceeded the industry's 8.3% growth during the same timeframe, reflecting robust operational improvements and market adaptability.

Gain insights into Constellation Energy's historical outcomes by reviewing our past performance report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqGS:CEG.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com