Shares of Xcel Energy Inc. (XEL Quick QuoteXEL - Free Report) rallied to a new 52-week high of $44.11 during yesterday’s trading session, before closing a tad lower at $43.85. Minneapolis, MN-based Xcel Energy is a utility holding company which, together with its subsidiaries, supplies natural gas and electricity across the U.S. The stock has delivered a one-year return of about 41.2%.

Over the past 52 weeks, Xcel Energy’s shares have ranged from a low of $32.02 on Jun 30, 2015 to a high of $44.11 on Jun 29, 2016. The average volume of shares traded over the last three months is approximately 3.2 million.

What’s Driving the Stock?

The long-term investment plans of the company will strengthen its operations and help it to serve its expanding customer base in a more reliable and efficient manner.  The company is also benefitting from improving economic conditions in its service territories. 

XCEL ENERGY INC Price

With the demand for clean, emission-free sources of energy growing rapidly in the U.S., Xcel Energy’s focus on large-scale clean energy projects, along with the extension of Production Tax Credit for wind energy and Investment Tax Credit for solar energy, will help the company achieve its long-term EPS growth target of 4–6%.

Xcel Energy is also investing heavily in transmission, generation and distribution projects in a bid to improve its performance over the long haul. Roughly 76% of the planned capital expenditure of $15.2 billion for the 2016–2020 period will be utilized for the expansion and consolidation of its operational infrastructure. Systematic long-term investments will enable the company to cater to its expanding customer base in a more reliable and efficient manner.

Xcel Energy currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks in the utility-electric power space include Black Hills Corporation (BKH Quick QuoteBKH - Free Report) , Spark Energy, Inc. and Korea Electric Power Corp. (KEP Quick QuoteKEP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).

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