Exelon Stock: Is EXC Underperforming the Utilities Sector?
Exelon Corporation (EXC), with a market cap of $44.4 billion, is a top utility services holding company engaged in the energy distribution and transmission businesses. The Chicago, Illinois-based company purchases and regulates retail sales of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas.
Companies valued at more than $10 billion or more are generally considered “large-cap stocks”, and EXC fits this criterion perfectly. As a leading supplier of energy services, the company benefits from a large customer base consisting of residential, commercial, industrial, governmental, public authorities and electric railroads, and transportation customers.
The stock has fallen 1.8% from its 52-week high of $45.19, recorded recently on Mar. 4. Shares of EXC have surged 21.6% over the past three months, outperforming the Utilities Select Sector SPDR Fund’s (XLU) 3.3% rally in the same time frame.
Over the past six months, EXC shares surged 10.4%, outperforming XLU’s marginal gain. However, shares of EXC have surged 21.7% over the past 52 weeks, compared to XLU’s 24.8% rally in the same time frame.
Enforcing an uptrend, EXC has been trading above its 200-day and 50-day moving average since mid-January.
EXC surged 1.3% following its Q4 earnings release on Feb. 12. The company reported a 1.9% increase in its operating revenues, which amounted to $5.5 billion. This growth was primarily driven by distribution rates at BGE, distribution, and transmission rate increases at PHI, a tax repairs deduction at PECO, lower contracting costs at PHI, lower storm costs at PECO and PHI, and a higher distribution rate base. Moreover, its EPS came in at $0.64, surpassing the Wall Street estimates by 8.5%.
Its rival, Xcel Energy Inc. (XEL), has also showcased robust growth, with its stock surging 8.4% over the past six months and 34.6% over the past 52 weeks.
Moreover, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 18 analysts in coverage. Its mean price target of $44.53 represents a marginal upside from the current market prices
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.