I’ll just cut to the chase: Xcel Energy (XEL) could be undervalued relative to the risk that options traders have historically faced under similar circumstances. To be fair, XEL stock isn’t viewed as a compelling opportunity by the market. For example, the Barchart Technical Opinion indicator rates the ticker as a 40% Sell — and it’s not an unjustified position.
Sure, XEL stock is in positive territory on a year-to-date basis, although it has only gained a modest 4.52%. However, the journey itself has been wildly choppy, meaning that your perspective on the underlying investment may vary depending on when you entered the position. For example, in the trailing month, XEL is down nearly 4%.
