Exelon Corporation (EXC), headquartered in Chicago, stands as one of the largest electric utility providers in North America. With a market capitalization of $38.2 billion, Exelon operates six regulated utilities: Atlantic City Electric, Baltimore Gas and Electric, Commonwealth Edison, Delmarva Power & Light, PECO Energy, and Potomac Electric Power Company.
Stock Performance: A Troubling Comparison
Over the past year, EXC shares have significantly underperformed compared to the broader market. In the last 52 weeks, the stock price has declined by 5.2%, while the S&P 500 Index ($SPX) has appreciated by 32.7%. In 2024, EXC’s gains of 7.2% have also lagged behind the S&P’s impressive return of 21.2% within the same period.
When examining the Utilities Select Sector SPDR Fund (XLU), EXC’s performance remains underwhelming, as it trails the fund’s 26.7% returns over the past year and 23.7% in the year-to-date performance.
Quarterly Earnings: Strong Results, Yet a Slump in Stock Price
On October 30, EXC announced its third-quarter earnings, which were met with a decline of over 3% in share price during following trading days, despite exceeding expectations. Exelon posted an adjusted profit of 71 cents per share, outpacing the anticipated 67 cents. Additionally, revenue for the quarter reached $6.15 billion, surpassing the forecasted $6.07 billion. For the full year, Exelon projects earnings between $2.40 and $2.50 per share.
Analysts predict a 2.9% increase in EXC’s earnings per share (EPS) for the current fiscal year, projecting it to reach $2.45. The company has shown a mixed record of earnings surprises; it has exceeded consensus estimates in three out of the last four quarters but fell short on one occasion.
Analyst Ratings: A Shift in Sentiment
Among the 18 analysts monitoring EXC stock, the consensus rating is categorized as a “Moderate Buy.” This assessment includes five “Strong Buy” ratings, 12 “Holds,” and a single “Strong Sell.” Notably, this rating indicates a more favorable outlook than two months prior, when only four analysts labeled the stock a “Strong Buy.”
On October 15, Nicholas Campanella from Barclays PLC (BCS) reiterated a “Buy” rating on Exelon, establishing a price target of $44. Presently, EXC’s average price target of $43.33 suggests a potential increase of 12.6% from current levels, while the highest target of $47 indicates a possible upside of 22.2%.
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On the date of publication, Kritika Sarmah 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.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
