We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Reasons to Add Exelon (EXC) to Your Portfolio Right Now
Read MoreHide Full Article
Exelon Corporation’s (EXC - Free Report) systematic capital expenditure to strengthen operations, cost management, support from the Illinois legislature to continue two nuclear plants and strong cash flow make it a solid investment option in the utility space.
The Zacks Consensus Estimate for 2021 earnings per share has moved up 1.07% in the past 60 days to $2.81.
The consensus mark for 2022 earnings is pegged at $5.65 per share, up 11.3% in the past 60 days.
Surprise History and Earnings Growth
Exelon reported an earnings surprise of 27.14% in the last reported quarter.
The long-term (three to five years) earnings growth of the company is projected at 2.99%.
Regular Investments & Emission Reduction
After investing $6.5 billion in 2020 in utility operation, Exelon plans to invest nearly $27 billion over the 2021-2024 time frame in regulated utility operations for grid modernization and increase the resilience of its infrastructure for the benefit of customers. Exelon is going to invest $17.8 billion in distribution, $5.8 billion in transmission and $3.2 billion in gas main replacement in the aforesaid time frame. The systematic investments will support rate base growth of 7.6% in the 2020-2024 time period.
Exelon — through its “path to clean” goal — is planning to reduce operations-driven emissions by 50% by 2030 against a 2015 baseline and reach net-zero operations-driven emissions by 2050. Support from the Illinois legislature that allowed the company to continue the operation of Byron and Dresden nuclear plants will allow the company to produce emission-free electricity for customers in Illinois.
Efficient Cost Management
Exelon is targeting to lower operating and maintenance expenses by 1% over the 2019-2022-time frame. Given the unprecedented economic crisis caused by the COVID-19 outbreak and the unpredictable nature of recovery from this difficult period, the company — through efficient cost management — lowered costs by $400 in 2020, which was $150 million more than planned.
The company aims to offset the negative impact of adverse weather on earnings for 2021 through additional one-time cost-saving initiatives, which will continue to boost margins.
Price Performance
Over the past 12 months, the stock has returned 43.1%, outperforming the industry’s rally of 10.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the same sector include Otter Tail Corporation (OTTR - Free Report) , Middlesex Water Company (MSEX - Free Report) and ONE Gas Inc. (OGS - Free Report) . Otter Tail currently sports a Zack Rank #1 while the other two stocks have a Zacks Rank #2 (Buy).
Otter Tail, Middlesex Water, and ONE Gas delivered an average earnings surprise of 31.79%, 0.51%, and 6.5%, respectively, in the last four quarters.
The Zacks Consensus Estimate for 2021 earnings per share of Otter Tail, Middlesex Water, and ONE Gas has moved up 39.2%, 3.7%, and 0.3%, respectively, in the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Reasons to Add Exelon (EXC) to Your Portfolio Right Now
Exelon Corporation’s (EXC - Free Report) systematic capital expenditure to strengthen operations, cost management, support from the Illinois legislature to continue two nuclear plants and strong cash flow make it a solid investment option in the utility space.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Projections
The Zacks Consensus Estimate for 2021 earnings per share has moved up 1.07% in the past 60 days to $2.81.
The consensus mark for 2022 earnings is pegged at $5.65 per share, up 11.3% in the past 60 days.
Surprise History and Earnings Growth
Exelon reported an earnings surprise of 27.14% in the last reported quarter.
The long-term (three to five years) earnings growth of the company is projected at 2.99%.
Regular Investments & Emission Reduction
After investing $6.5 billion in 2020 in utility operation, Exelon plans to invest nearly $27 billion over the 2021-2024 time frame in regulated utility operations for grid modernization and increase the resilience of its infrastructure for the benefit of customers. Exelon is going to invest $17.8 billion in distribution, $5.8 billion in transmission and $3.2 billion in gas main replacement in the aforesaid time frame. The systematic investments will support rate base growth of 7.6% in the 2020-2024 time period.
Exelon — through its “path to clean” goal — is planning to reduce operations-driven emissions by 50% by 2030 against a 2015 baseline and reach net-zero operations-driven emissions by 2050. Support from the Illinois legislature that allowed the company to continue the operation of Byron and Dresden nuclear plants will allow the company to produce emission-free electricity for customers in Illinois.
Efficient Cost Management
Exelon is targeting to lower operating and maintenance expenses by 1% over the 2019-2022-time frame. Given the unprecedented economic crisis caused by the COVID-19 outbreak and the unpredictable nature of recovery from this difficult period, the company — through efficient cost management — lowered costs by $400 in 2020, which was $150 million more than planned.
The company aims to offset the negative impact of adverse weather on earnings for 2021 through additional one-time cost-saving initiatives, which will continue to boost margins.
Price Performance
Over the past 12 months, the stock has returned 43.1%, outperforming the industry’s rally of 10.7%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the same sector include Otter Tail Corporation (OTTR - Free Report) , Middlesex Water Company (MSEX - Free Report) and ONE Gas Inc. (OGS - Free Report) . Otter Tail currently sports a Zack Rank #1 while the other two stocks have a Zacks Rank #2 (Buy).
Otter Tail, Middlesex Water, and ONE Gas delivered an average earnings surprise of 31.79%, 0.51%, and 6.5%, respectively, in the last four quarters.
The Zacks Consensus Estimate for 2021 earnings per share of Otter Tail, Middlesex Water, and ONE Gas has moved up 39.2%, 3.7%, and 0.3%, respectively, in the past 60 days.