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.
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.
Shares 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.
On 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.
