Xcel Energy Inc. (XEL) is a leading Minnesota-based electric and natural gas utility serving millions of customers across eight states. With a market cap of $40.4 billion, Xcel operates a diverse energy portfolio that includes renewable energy sources, such as wind and solar, alongside traditional power generation.
Companies valued at $10 billion or more are classified as "large-cap" stocks and Xcel Energy perfectly fits into this category, showcasing its significant scale, stability, and influence within the utility sector. With a strong focus on sustainability, Xcel Energy has been at the forefront of clean energy initiatives, aiming to achieve 100% carbon-free electricity by 2050. The company plays a key role in modernizing the energy grid and investing in infrastructure to enhance reliability and efficiency.
XEL shares are currently trading 4.3% below their 52-week high of $73.38, reached on Nov. 27, yet the stock has shown resilience, climbing 5.4% over the past three months, the outpacing broader Dow Jones Industrial Average’s ($DOWI) marginal fall during the same time frame.
Looking at a longer horizon, XEL has surged 9.7% over the past six months, and the shares have gained 34% over the past 52 weeks. In comparison, the $DOWI has dropped marginally over the past six months and rallied 7.3% over the past year.
Strengthening its bullish momentum, XEL has consistently traded above its 50-day moving average since early February and has remained above the 200-day moving average since late July, reinforcing investor confidence in its upward trajectory.
Xcel Energy shares declined 1.2% on Feb. 6 after the company reported disappointing Q4 earnings, with a profit of $0.81 per share falling short of consensus estimates. Revenue came in at $3.1 billion, marking a 9.3% year-over-year decline and missing Wall Street projections. Higher operating and maintenance costs, driven by increased spending on generation maintenance, storm response, wildfire mitigation, and damage prevention, weighed on profitability.
In the competitive regulated utility industry, XEL has outpaced its competitor, American Electric Power Company, Inc. (AEP), which has recorded a comparatively modest 27% gain over the past year and a 4% increase in the last six months.
Despite the stock's solid recent price performance, analysts are moderately bullish about XEL's prospects. The stock has a consensus rating of "Moderate Buy" from 16 analysts in coverage. Its mean price target is $73.67, suggesting a 4.9% premium to its current price levels.
On the date of publication, Kritika Sarmah 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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