Exelon Corporation (EXC), headquartered in Chicago, Illinois, is engaged in the energy distribution and transmission businesses. Valued at $34.70 billion by market cap, the company serves more than 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.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EXC perfectly fits that description, signifying its substantial size, stability, and dominance in its industry.
The utility major has fallen 20.3% from its 52-week high of $43.53, which it hit on Jul. 26, 2023. Shares of EXC are down 7% over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 4.5% gains over the same time frame.
Longer term, EXC has declined 15% over the past year, and in 2024, the stock is down 3.3%. By contrast, the SPX is up 15% on a YTD basis and 25.2% over the past 52 weeks.
The stock has been trading below its 50-day moving average since early June and 200-day moving average since late May to confirm the bearish price trend.
On May 2, EXC reported its Q1 results. Its adjusted EPS was $0.69, below the consensus estimates of $0.70. The company’s revenue and net income were $6.04 billion and $658 million, respectively. EXC expects its full-year EPS to be between $2.40 and $2.50. Shares of EXC closed down more than 1% in the session following the day the results were released and have been on a downtrend since then.
Rival American Electric Power Company, Inc. (AEP) has outperformed EXC. AEP stock has gained 5.8% in the past 52 weeks and is up 8.7% on a YTD basis.
After its recent underperformance compared to SPX, analysts are cautious about EXC’s prospects. The stock has a consensus rating of “Hold” from the 17 analysts covering it, but the mean price target of $39.43 is a premium of 13.6% to current levels.
On the date of publication, Dipanjan Banchur 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.
