Inside Exelon’s Long-Term Growth Outlook



Exelon’s earnings growth prospects for the long term

Exelon (EXC) has issued a flat to negative earnings outlook for 2017, though its rate base is expected to rise 6.5% annually through 2020. Strong rate-base growth generally bodes well for a utility’s stable, long-term earnings.

Exelon’s utilities are also expected to be growth drivers. Its EPS (earnings per share) is expected to grow 6%–8% annually from 2017 to 2020.

EXC ppt

Exelon’s major earnings contributor, Exelon Generation, may remain under pressure until the power demand growth picks up. Meanwhile, competitive utilities such as Exelon, Public Service Enterprise (PEG), and FirstEnergy (FE) have been stressed by lower wholesale power prices and poor power demand.

You can find out which of these competitive utilities (XLU) might be the best investment options for your portfolio in Market Realist’s How Are Competitive Utilities Placed Heading into 2017?

Continue to the next part of this series for a closer look at Exelon’s stock value.

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