Exelon Corporation (EXC), headquartered in Chicago, Illinois, is a utility services holding company. Valued at $38.52 billion by market cap, the company engages in the energy distribution and transmission businesses in the U.S. and Canada, serving more than 10.5 million customers through six fully regulated transmission and distribution utilities – Atlantic City Electric (ACE), Baltimore Gas and Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power & Light (DPL), PECO Energy Company (PECO), and Potomac Electric Power Company (Pepco).
Shares of this leading utility company have underperformed the broader market considerably over the past year. EXC has declined 3.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.9%. But in 2024, the gap narrowed, with EXC stock rising 7.3%, while the SPX is up 11.6% on a YTD basis.
Narrowing the focus, EXC’s underperformance looks less pronounced compared to the S&P 500 Utilities Sector SPDR (XLU). The exchange-traded fund has gained about 10.2% over the past year. However, the ETF’s 15.1% returns on a YTD basis massively outshine the stock’s gains over the same time frame.
On May 2, EXC reported its Q1 results with adjusted EPS of $0.69, lower than Wall Street expectations of $0.70. The company forecasted its full-year EPS between $2.40 and $2.50. The stock declined more than 1% in the session following the day the results were released.
For the current fiscal year, ending in December, analysts expect EXC’s EPS to grow 2.1% to $2.43 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the 17 analysts covering 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 three months.
Recently, Wells Fargo analyst Neil Kalton maintained a “Hold” rating on EXC stock and set a price target of $40, implying a potential upside of 3.8% from current levels.
The mean price target of $39.36 represents a 2.2% premium to EXC’s current price levels. The Street-high price target of $43 suggests an upside potential of 11.6%.
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.
