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Here's Why You Should Add Exelon (EXC) to Your Portfolio Now
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Exelon Corporation’s (EXC - Free Report) long-term investment plans to strengthen its transmission and distribution infrastructure will further drive its performance. Given its growth opportunities and strong dividend history, EXC makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for EXC’s fourth-quarter 2023 earnings per share (EPS) has increased 11.8% to 57 cents in the past 60 days.
EXC’s long-term (three- to five-year) earnings growth rate is 6.3%. It delivered an average earnings surprise of 1.8% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. In the trailing twelve months, EXC’s ROE is 8.82%, higher than the industry’s average of 6.96%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Dividend History
Exelon has been consistently increasing shareholders’ value by paying dividends. Currently, its quarterly dividend is 36 cents per share. This resulted in an annualized dividend of $1.44 per share, indicating a 6.7% improvement from the previous year’s reported figure of $1.35. Exelon aims to increase its dividend per share by 6-8% annually through 2026, subject to the approval of its board of directors. The company’s current dividend yield is 3.7%, better than the Zacks S&P 500 Composite's average of 1.43%.
Systematic Investments
EXC invests substantially in infrastructure projects. It plans to invest nearly $31.3 billion during 2023-2026 in regulated utility operations for grid modernization and enhancement of its infrastructure’s resilience for the benefit of its customers.
The company is set to invest $20.8 billion in electric distribution, $6.7 billion in electric transmission and $3.9 billion in gas delivery during 2023-2026. It is also targeting long-term EPS growth of 6-8% annually during the same period.
Price Performance
In the past year, Exelon’s shares have rallied 0.6% against the industry’s average decline of 11%.
Consolidated Edison’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2023 EPS is pinned at $4.91, implying a year-over-year increase of 7.9%.
PPL’s long-term earnings growth rate is 7.42%. The consensus estimate for the company’s 2023 EPS is pegged at $1.58, indicating a year-over-year improvement of 12.1%.
NiSource’s long-term earnings growth rate is 7.15%. The consensus estimate for the company’s 2023 EPS is pinned at $1.59, indicating year-over-year growth of 8.2%.
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Here's Why You Should Add Exelon (EXC) to Your Portfolio Now
Exelon Corporation’s (EXC - Free Report) long-term investment plans to strengthen its transmission and distribution infrastructure will further drive its performance. Given its growth opportunities and strong dividend history, EXC makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for EXC’s fourth-quarter 2023 earnings per share (EPS) has increased 11.8% to 57 cents in the past 60 days.
EXC’s long-term (three- to five-year) earnings growth rate is 6.3%. It delivered an average earnings surprise of 1.8% in the last four quarters.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. In the trailing twelve months, EXC’s ROE is 8.82%, higher than the industry’s average of 6.96%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Dividend History
Exelon has been consistently increasing shareholders’ value by paying dividends. Currently, its quarterly dividend is 36 cents per share. This resulted in an annualized dividend of $1.44 per share, indicating a 6.7% improvement from the previous year’s reported figure of $1.35. Exelon aims to increase its dividend per share by 6-8% annually through 2026, subject to the approval of its board of directors. The company’s current dividend yield is 3.7%, better than the Zacks S&P 500 Composite's average of 1.43%.
Systematic Investments
EXC invests substantially in infrastructure projects. It plans to invest nearly $31.3 billion during 2023-2026 in regulated utility operations for grid modernization and enhancement of its infrastructure’s resilience for the benefit of its customers.
The company is set to invest $20.8 billion in electric distribution, $6.7 billion in electric transmission and $3.9 billion in gas delivery during 2023-2026. It is also targeting long-term EPS growth of 6-8% annually during the same period.
Price Performance
In the past year, Exelon’s shares have rallied 0.6% against the industry’s average decline of 11%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Consolidated Edison (ED - Free Report) , PPL Corporation (PPL - Free Report) and NiSource Inc (NI - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated Edison’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2023 EPS is pinned at $4.91, implying a year-over-year increase of 7.9%.
PPL’s long-term earnings growth rate is 7.42%. The consensus estimate for the company’s 2023 EPS is pegged at $1.58, indicating a year-over-year improvement of 12.1%.
NiSource’s long-term earnings growth rate is 7.15%. The consensus estimate for the company’s 2023 EPS is pinned at $1.59, indicating year-over-year growth of 8.2%.