Would You Still Hold Constellation Energy Stock If It Fell Another 30%?
Constellation Energy (CEG) stock is down 15.8% in 21 trading days. The recent slide reflects renewed concerns around capped electricity prices and increased competition in the PJM grid, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Constellation Energy stands today.
- Size: Constellation Energy is a $96 Bil company with $25 Bil in revenue currently trading at $307.71.
- Fundamentals: Last 12 month revenue growth of 3.6% and operating margin of 12.1%.
- Liquidity: Has Debt to Equity ratio of 0.09 and Cash to Assets ratio of 0.07
- Valuation: Constellation Energy stock is currently trading at P/E multiple of 35.2 and P/EBIT multiple of 23.1
- Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 65.2% within a year. See CEG Dip Buy Analysis.
These metrics point to a Moderate operational performance, alongside High valuation – making the stock Unattractive. For details, see Buy or Sell CEG Stock
That brings us to the key consideration for investors worried about this fall: how resilient is CEG stock if markets turn south? This is where our downturn resilience framework comes in. Suppose CEG stock falls another 20-30% to $215 – can investors comfortably hold on? Turns out, the stock has been more resilient than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- CEG stock fell 24.5% from a high of $97.16 on 25 November 2022 to $73.40 on 23 March 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 25 July 2023
- Since then, the stock increased to a high of $403.95 on 15 October 2025 , and currently trades at $307.71
| CEG | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -24.5% | -25.4% |
| Time to Full Recovery | 124 days | 464 days |
Feeling jittery about CEG stock? Consider portfolio approach.
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