Chicago-based Exelon Corporation (EXC) is one of the nation's largest electric utilities companies. It engages in energy distribution and transmission businesses in the United States and Canada. With a market cap of $37.8 billion, Exelon serves over 10.5 million customers through six fully regulated transmission and distribution utilities: Atlantic City Electric, Baltimore Gas and Electric, Commonwealth Edison, Delmarva Power & Light, PECO Energy Company, and Potomac Electric Power Company.
Shares of the utility major have substantially underperformed the broader market over the past year. Over the past 52 weeks, EXC stock is down 6.4% versus the S&P 500 Index’s ($SPX) 18.2% returns. Despite rallying 4.6% on a YTD basis, EXC lags behind SPX’s 11.5% gains over the same time frame.
Narrowing the focus, the company has also underperformed the S&P 500 Utilities Sector SPDR’s (XLU) 14.1% returns over the past 52 weeks and 15.8% gains on a YTD basis.
Exelon shares have underperformed the broader market over the past year due to increased operating expenses, higher debt levels, and regulatory challenges. However, EXC stock rose 2.9% following its Q2 earnings release on Aug. 1. The company showcased an impressive financial performance, generating a total operating revenue of $5.4 billion, up 11.3% year over year and a massive 30.6% net income growth. Moreover, it reaffirmed the full-year operating earnings guidance.
For the current fiscal year, ending in December, analysts expect Exelon's EPS to grow 2.1% year over year to $2.43. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the past four quarters while missing the forecasts on two other occasions.
Among the 17 analysts covering the EXC stock, the consensus rating is a “Hold.” That's based on four “Strong Buy” ratings, 12 “Holds,” and one “Strong Sell.”
This configuration has been consistent over the past months.
On Aug. 2, Wells Fargo (WFC) analyst Neil Kalton maintained a “Hold” rating with a price target of $42.
EXC’s mean price target of $40.57 represents a premium of 8.1% from current price levels. The street-high target of $45 indicates a potential upside of 19.9%.
On the date of publication, Aditya Sarawgi 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.
