With a market cap of $38.2 billion, Xcel Energy Inc. (XEL) is a utility holding company that generates, transmits, and distributes electricity and natural gas across several U.S. states, using a diverse energy mix including wind, solar, nuclear, hydro, and fossil fuels. Based in Minneapolis, Minnesota, the company serves residential, commercial, and industrial customers while focusing on clean energy initiatives.
Shares of the utility company have underperformed the broader market over the past 52 weeks. Xcel Energy stock has returned 14.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.6%. Moreover, shares of XEL are down 1.4% on a YTD basis, compared to SPX's 2.5% gain.
Looking closer, XEL has lagged behind the Utilities Select Sector SPDR Fund's (XLU) 29.2% return over the past 52 weeks and a 3.2% YTD gain.
Shares of Xcel Energy fell 1.2% on Feb. 6 due to lower-than-expected Q4 earnings, as the company reported a profit of $0.81 per share, missing the consensus estimate. Additionally, total revenue of $3.1 billion fell short of Wall Street expectations, reflecting a 9.3% year-over-year decline. Higher operating and maintenance expenses, which rose 6.6% to $618 million due to increased generation maintenance, storm response, wildfire mitigation, and damage prevention costs, also weighed on investor sentiment.
For the current fiscal year, ending in December 2025, analysts expect XEL's EPS to grow 9.1% year-over-year to $3.82. The company's earnings surprise history is mixed. It beat the consensus estimates in one of the last four quarters while missing on three other occasions.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings and five “Holds.”
This configuration is more bullish than three months ago, with nine “Strong Buy” ratings on the stock.
On Jan. 21, Jefferies reaffirmed its confidence in Xcel Energy by maintaining a “Buy” rating despite slightly lowering its price target to $75.
As of writing, XEL is trading below the mean price target of $73.20. The Street-high price target of $79 implies a potential upside of 18.6%.
