In this series, we’re analyzing analysts’ favorite stocks from the S&P 500 Utilities Index (XLU). We’ll look at Exelon (EXC) in this part. The largest utility by revenue, Exelon Corporation is currently tracked by 18 analysts. Five of them have recommended a “strong buy” for the stock, and nine have recommended a “buy.” Three rate the stock a “hold,” and one of them rates it a “sell” as of March 7.
According to analysts’ consensus, Exelon has a mean price target of $41.9 against its current market price of $37.2, which suggests an estimated upside of 13.0%.
Peer price targets
Exelon’s peer FirstEnergy’s (FE) stock has a mean price target of $35.9, which implies an estimated gain of $13% in a year. FirstEnergy is currently trading at a market price of $31.9.
Public Service Enterprise Group (PEG) stock currently offers a potential upside of 12% from its market price of $47.2. Wall Street analysts have given it a mean price target of 52.9.
Exelon stock has corrected more than 10% in the last three months. At the same time, broader utilities (XLU) have fallen nearly 13%.
As we discussed earlier in this series, utilities started trading weakly after peaking in November 2017. Overvaluation concerns, tax reforms, and interest rate hikes weighed on these defensives in this period. You can read about how institutional investors played out their utility holdings in The Top S&P 500 Utilities’ Institutional Activity in 4Q17.