Valued at a market cap of $37 billion, Exelon Corporation (EXC) is a utility services holding company that engages in energy distribution and transmission businesses in the United States and Canada. The Chicago, Illinois-based company is involved in the purchase and regulated retail sale of electricity and natural gas, transmission and distribution of electricity, and distribution of natural gas to retail customers.
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and EXC fits the label perfectly. The public utility giant serves distribution utilities, municipalities, and financial institutions, as well as commercial, industrial, governmental, and residential customers.
Despite its strengths, EXC has declined 11.1% from its 52-week high of 41.42, achieved on Dec. 14, 2023. Moreover, shares of EXC have decreased 7.6% over the past three months, significantly underperforming the broader Dow Jones Industrials Average ($DOWI) 6.9% gain over the same time frame.
Moreover, in the longer term, EXC has fallen 6.6% over the past 52 weeks, significantly lagging behind DOWI’s 20.1% returns. Shares of EXC are up 2.6% on a YTD basis, massively underperforming DOWI’s 16.5% gains over the same time frame.
To confirm its bearish trend, EXC has been trading below its 50-day moving average since late October and has remained below its 200-day moving average since early December.
On Oct. 30, shares of EXC closed up marginally after delivering its better-than-expected Q3 revenue of $6.15 billion and adjusted earnings of $0.71 per share. The company’s revenue increased 6% annually while its top-line improved 2.9% from the year-ago figure. Higher distribution earnings coupled with a strong return on regulatory assets boosted EXC’s performance.
EXC's underperformance becomes more evident when compared to its rival, Duke Energy Corporation (DUK), which gained 14.5% over the past 52 weeks and 12.5% on a YTD basis.
Despite EXC’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts covering it, and the mean price target of $124.53 suggests a modest 14.1% premium to its current levels.
