With a market cap of $48 billion, Xcel Energy Inc. (XEL) is a regulated electric and natural gas utility company. Headquartered in Minneapolis, Minnesota, the company generates, transmits, and distributes electricity while also providing natural gas distribution services to residential, commercial, and industrial customers.
Xcel Energy has struggled to keep pace with the broader market over the past year. XEL stock has returned 5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 21.5%. The stock has continued to trail the benchmark in 2026, rising 4.2% year to date versus the index's 12.6% gain.
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However, Xcel has quietly outperformed many of its utility peers. The stock has edged past the State Street Utilities Select Sector SPDR ETF's (XLU) 1.3% increase over the past 52 weeks and 1.6% rally in 2026.
www.barchart.com On July 30, Xcel Energy shares dipped marginally even after the company posted a solid second quarter, driven by continued infrastructure investments and robust electricity demand. The utility reported an operating revenue of $3.12 billion. Its GAAP and ongoing earnings stood at $0.93 per share, up 24% from $0.75 a year earlier. The improved results were supported by higher recovery of electric infrastructure investments, increased electric sales growth, and stronger earnings across its regulated utilities. Encouraged by its strong execution, management reaffirmed its full-year 2026 ongoing EPS guidance of $4.04 to $4.16, underscoring confidence in its long-term growth outlook.
For the fiscal year ending in December 2026, analysts expect XEL's ongoing EPS to grow 8.2% year-over-year to $4.11. The company's earnings surprise history is mixed. It beat or met the consensus estimates in two of the last four quarters while missing on two other occasions.
Among the 19 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and two “Holds.”
www.barchart.com On July 22, BMO Capital maintained its "Outperform" rating on Xcel Energy while trimming its price target to $92 from $95, reflecting a modestly lower valuation but continued confidence in the utility's long-term growth prospects.
The mean price target of $93.16 represents a 21% premium to XEL’s current price levels. The Street-high price target of $102 suggests a 32.5% potential upside.
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.
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