Xcel Energy Inc. (XEL), headquartered in Minneapolis, Minnesota, generates, purchases, transmits, distributes, and sells electricity. With a market cap of $48.6 billion, the company also purchases, transports, distributes, and sells natural gas to retail customers, as well as transports customer-owned natural gas.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and XEL perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. XEL stands out for its substantial renewable energy portfolio, with over half its electricity sales derived from carbon-free sources, aligning with global sustainability trends and appealing to eco-conscious consumers. A significant strength lies in its ability to recover capital-intensive infrastructure investments through regulatory mechanisms, ensuring financial stability and contributing to steady revenue growth.
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Despite its notable strength, XEL slipped 7.3% from its 52-week high of $84.23, achieved on Feb. 26. Over the past three months, XEL stock has declined 4.6%, underperforming the Dow Jones Industrials Average’s ($DOWI) 4.6% gains during the same time frame.
www.barchart.comShares of XEL rose 5.7% on a YTD basis and climbed 13.3% over the past 52 weeks, underperforming DOWI’s YTD gains of 3.9% and 16.5% returns over the last year.
To confirm the bearish trend, XEL has been trading below its 200-day moving average since early June, with some fluctuations. The stock has been trading below its 50-day moving average since late March, experiencing some fluctuations.
www.barchart.comOn Apr. 30, XEL shares closed up more than 5% after reporting its Q1 results. Its adjusted EPS of $0.91 met Wall Street expectations. The company’s revenue was $4 billion, falling short of Wall Street forecasts of $4.2 billion. XEL expects full-year adjusted EPS in the range of $4.04 to $4.16.
In the competitive arena of utilities - regulated electric, American Electric Power Company, Inc. (AEP) has taken the lead over XEL, showing resilience with an 11.5% uptick on a YTD basis and 26.2% gains over the past 52 weeks.
Wall Street analysts are bullish on XEL’s prospects. The stock has a consensus “Strong Buy” rating from the 19 analysts covering it, and the mean price target of $92.22 suggests a potential upside of 18.1% from current price levels.
On the date of publication, Neha Panjwani 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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