Starting off October on a bullish note, Constellation Energy (NASDAQ:CEG) stock is powering higher today after the power producer announced a new power purchase agreement with Amazon.

As of 1:06 p.m. ET, shares of Constellation Energy are up 2.3%, paring back an earlier gain of 6.4%.

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Maryland's only nuclear power plant is about to get a lot more powerful

Constellation and Amazon announced yesterday that they have inked a 20-year, 690-megawatt power agreement that will support $3 billion in facility upgrades and the expansion of the Calvert Cliffs Clean Energy Center, which includes two nuclear reactors, in Maryland.

The investment will help Constellation add about 190 megawatts between 2030 and 2032 to the facility, which currently has a 1,790-megawatt generation capacity.

Additionally, the two companies announced a related retail supply agreement to support Amazon operations in the 13-state PJM market, where electricity is bought, sold, and distributed across the Mid-Atlantic and parts of the Midwest.

Is it too late to buy Constellation stock now?

Unlike stocks of companies developing advanced nuclear reactors, Constellation stock offers investors a more conservative way to gain exposure to the nuclear renaissance the United States is currently experiencing. While shares of Constellation are bumping higher today, they have hardly soared to a valuation that would make them undesirable, trading at only 2.7 times trailing sales.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Constellation Energy. The Motley Fool has a disclosure policy.

Admittedly, I am quite bullish on NextEra Energy (NYSE: NEE), and for dividend investors, it has long been a favorite. Yet today I'll make the case for Constellation Energy (NASDAQ: CEG) as potentially the better long-term buy. Here's why.

Constellation operates the most nuclear-energy-producing facilities in the U.S. Data centers require power nonstop, and Constellation can meet those needs with its carbon-free, around-the-clock nuclear capabilities. While NextEra is moving into nuclear as well, the process to get up and running takes time, and Constellation is already there.

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Constellation's financials are strong, and its second-quarter revenue reached $7.5 billion, a 23% increase from the year prior. Management also raised its full-year guidance for adjusted operating earnings to a range of $11.50 to $12.50 per share.

Constellation's footprint is also expanding. This September, the company agreed to purchase a gas plant in Rhode Island that will add 609 megawatts of capacity. The plant also comes complete with a 15-year purchase agreement with Toyota.

Constellation's stock has stumbled despite the positive news, falling more than 25% in 2026 as of this writing. With shares trading around $260, Wall Street's consensus average price target of $347 implies significant growth potential ahead.

In my mind, NextEra is more of an income investment, and Constellation is more growth-oriented. While Constellation does have a dividend, the yield is less than 1%. NextEra is a solid choice for most portfolios, but I really see a strong upward trajectory ahead for Constellation.

The stock's decline this year creates an attractive entry point for long-term investors.

Catie Hogan has positions in NextEra Energy. The Motley Fool has positions in and recommends Constellation Energy and NextEra Energy. The Motley Fool has a disclosure policy.