Chicago, IL – February 13, 2026 – Today, Zacks Investment Ideas feature highlights Constellation Energy CEG, Microsoft MSFT and Quanta Services, Inc. PWR.
Investors looking to buy stocks amid the broadly bullish Q4 earnings season might want to consider two S&P 500 giants poised for long-term upside across compounding artificial intelligence-boosted megatrends.
First up is nuclear and AI energy powerhouse Constellation Energy (CEG) is trading over 30% below its October records heading into its projected earnings release on February 17, even though it’s still up 220% in the past three years—nearly tripling the benchmark’s return.
The dividend-paying nuclear and natural gas company that’s helping power the AI data center boom’s outlook remains strong, and it’s finding support at a key technical range.
Next up is an energy infrastructure titan, Quanta Services (PWR) has soared 75% in the past year, including a 24% YTD run to new highs.
The company’s growth outlook is fantastic as it expands on the back of the AI energy boom, grid expansion/hardening, and beyond.
Constellation Energy stock soared 415% since its early 2022 IPO following a spinoff from Exelon. Wall Street dove into the largest U.S. nuclear power plant operator because it’s a best-in-class way to play the nascent nuclear energy revival.
CEG’s recent pullback allows investors a great chance to buy the nuclear energy stock down 33% from its October peaks, with its average Zacks price target offering 48% upside from its current levels. Plus, Constellation recently held its ground at its September 2024 breakout levels (Microsoft nuclear power deal announcement).
CEG is one of the vanguards of the now entrenched relationship between AI hyperscalers and nuclear power via its groundbreaking 20-year power deals with Microsoft and Meta.
Constellation recently cemented its standing as one of the giants of the AI energy age with a $27 billion deal to buy natural gas and geothermal powerhouse Calpine, which closed in early 2026. The AI hyperscalers crave the clean baseload power nuclear provides, as well as the reliability of natural gas to power the AI arms race.
Generative AI can use 10x the energy of an average Google search, which is a big reason why U.S. electricity demand is projected to grow 75% to 100% by 2050. This is why the U.S. government has rolled out tax credits and much more as part of its goal of helping quadruple nuclear capacity by 2050.
The AI hyperscalers and the U.S. Department of Energy are helping Constellation restart nuclear reactors that were shuttered for economic reasons and pursue its next-gen small modular reactor ambitions.
The nuclear energy powerhouse is expected to grow its adjusted EPS by ~8% in 2025 and ~22% in 2026. CEG’s near-term trajectory is part of “visible, double-digit long-term base EPS growth backed by the Nuclear Production Tax Credit.”
On top of that, Constellation raised its dividend by 10% in 2025 after lifting it by 25% in 2024 as part of a plan to consistently boost its payout to shareholders.
Constellation stock has dropped roughly 33% from its October peaks after it grew overheated and its earnings revisions stagnated. There are signs this is changing, with its Most Accurate EPS estimate for 2026 coming in 17% above consensus. The chart above also highlights its strong longer-term earnings outlook.
CEG’s recent downturn, coupled with its earnings growth outlook, helps it trade in line with its three-year median and its industry at 24.0X forward 12-month earnings. Its valuation is more impressive considering that it has doubled its industry in the past three years.
The nuclear energy and natural gas giant that’s helping power the AI age is currently projected to release its quarterly results on Tuesday, February 17.
Quanta Services, Inc. is an energy infrastructure titan growing rapidly as it plays a larger role in the AI energy boom, electrification, grid expansion/hardening, and more.
PWR’s revenue and earnings growth have gone into hyperdrive over the last five years, and its growth outlook is fantastic for a company of its size and age as it rides some of the most important economic and Wall Street megatrends.
Quanta stock has skyrocketed 2,600% in the past decade, including a 560% charge in the past five years.
PWR provides wide-ranging infrastructure solutions for the utility, renewable energy, communications, pipeline, and energy industries. Quanta’s offerings include designing, installing, repairing, and maintaining energy and communications infrastructure.
Quanta is a pure-play energy and utility infrastructure investment riding long-term megatrends across AI data centers, manufacturing and reshoring, industrialization, electrification, and power grid expansion.
The U.S. electricity grid was already in desperate need of investment and expansion before the AI boom, that’s set to boost electricity demand by upwards of 100% by 2050. Reports suggest that U.S. transmission capacity must double to keep up with this projected growth.
Quanta doubled its revenue between 2020 and 2024 ($11.20 billion to $23.67 billion), helping it post massive GAAP earnings growth during that stretch. Its post-Covid growth came after PWR nearly doubled its sales from 2012 to 2019.
The electric infrastructure powerhouse closed Q3 with a record total backlog of $32.64 billion, up from $27.52 billion a year ago. Quanta also announced that NiSource, one of the nation’s largest fully regulated utility companies, selected the firm to deliver power generation and grid infrastructure solutions for a large load customer.
The deal “demonstrates the strength of Quanta’s total solutions platform for large and converging addressable markets, spanning power generation, battery energy storage, utility grid, and underground infrastructure.”
Looking ahead, PWR is projected to grow its revenue by 18% in FY25 and 10% in 2026 to reach $30.84 billion, vs. $11.2 billion in 2020. The infrastructure solutions company is set to expand its adjusted earnings by 18% and 17%, respectively, extending its strong run of bottom-line growth. The chart above shows its impressive longer-term earnings growth outlook.
The Houston, Texas-based company, which reports its Q4 financial results on Thursday, February 19, could experienced some near-term selling pressure given its run. Any pullback to long-term moving averages would offer investors a great chance to buy. But market timing is exceedingly difficult, meaning it might be wise to start a position in Quanta now and add to it at the next leg down.
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