Minneapolis, Minnesota-based Xcel Energy Inc. (XEL) engages in generating, purchasing, transmitting, distributing, and selling electricity. With a market cap of $32.2 billion, Xcel operates through Regulated Electric Utility, Regulated Natural Gas Utility, and All Other segments.
The utilities major has substantially underperformed the broader market over the past year. Over the past 52 weeks, XEL dipped 2.9%, trailing the S&P 500 Index’s ($SPX) 19.6% gains. In 2024 alone, XEL declined 6.4% compared to SPX’s 12% rally on a YTD basis.
Zooming in further, XEL has also underperformed the S&P 500 Utilities Sector SPDR’s (XLU) 14.3% returns over the past 52 weeks and 16.2% gains on a YTD basis.
Xcel’s shares experienced a 1.4% uptick following the release of its Q2 earnings on Aug. 1. Despite falling short of consensus EPS estimates by 1.8%, the company reported a 4.9% quarterly growth in net income. Additionally, Xcel reaffirmed its 2024 EPS guidance between $3.50 and $3.60 per share, cushioning investor confidence.
For the current year, ending in December, analysts expect Xcel’s EPS to grow by 6% annually to $3.55. The company’s earnings surprise history is mixed. It missed the consensus estimates in three of the past four quarters while surpassing the forecasts on another occasion.
Among the 14 analysts covering the XEL stock, the consensus rating is “Moderate Buy.” That’s based on seven “Strong Buy” ratings and seven “Holds.”
This configuration has been consistent over the past months.
On Aug. 2, Wells Fargo (WFC) analyst Neil Kalton maintained a “Hold” rating with a price target of $63.
XEL’s mean price target of $64.08 represents a premium of 10.6% from current price levels. The street-high target of $71 indicates a potential upside of 22.5%.
On the date of publication, Aditya Sarawgi 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.
