In this series, we’re looking at the top ten S&P 500 utilities by market capitalization. Exelon (EXC), valued at $45.4 billion, is the fifth-biggest utility by market capitalization. The company has a huge exposure to competitive operations, which makes its earnings and stock less stable. Exelon has been one of the top gainers this year, rising more than 18%.
Exelon stock’s forward PE multiple is 15x, lower than many of its peers’ and its five-year average of ~17x. Exelon’s earnings have grown strongly this year, with its EPS growing 18% year-over-year in the first nine months. However, analysts expect slower EPS growth next year.
Analysts’ median target price of $47.30 for Exelon suggests it could stay flat based on its current price of $46.90. Of the 20 analysts tracking Exelon, four recommend “strong buy,” eight recommend “buy,” and eight recommend “hold.” None recommend “sell.” SunTrust Robinson raised EXC’s target price from $46 to $48 on December 3.