Estimates for Exelon Corporation EXC have been revised upward over the past 90 days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings have inched up 1% and 1.7% to $3.08 and $3.06, respectively.

Exelon is a utility services holding company, based in Chicago, IL and serves nearly 10 million customers across service territories. The Zacks Consensus Estimate for current-year earnings is pegged at $3.08, reflecting a year-over-year surge of 18.5%.

Let’s discuss the factors that make Exelon an attractive pick.

Price Performance  

In the last 12 months shares of Exelon have gained 12.7% against the industry’s decline of 3.6%.


VGM Score

The stock carries an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Backtested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.

Investment on infrastructure

Exelon investing substantially in infrastructure projects and plans to invest nearly $21 billion in the 2018-2021 periods. Such systematic investments in regulated assets will drive rate base growth of 7.4% during this time frame, up from the previous expectation of 6.5% growth in the 2017-2020 periods. The ongoing system of strengthening work helped the company to face the three Nor’easters in March 2018 and restore power quickly.

Dividend Increase Plan

In January 2018, the board of directors of Exelon announced an updated dividend policy targeting 5% annual dividend growth from 2018 to 2020, up from 2.5% annual growth implemented in 2016. The company is also utilizing its cash flow to lower debt levels and aims to cut its debt level by more than $3 billion in the next four years.

Zacks Rank & Other Key Picks

Exelon carries a Zacks Rank #2 (Buy).  

Investors can consider other top-ranked stocks from the same space such as Ameren Corporation AEE, Algonquin Power & Utilities Corp AQN and NRG Energy, Inc NRG. Ameren holds a Zacks Rank of 2. Algonquin Power & Utilities and NRG Energy sport a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameren came up with an average four-quarter earnings surprise of 7.69%. The Zacks Consensus Estimate for 2018 EPS moved up by a penny in the last 90 days to $3.04.

Algonquin Power & Utilities delivered an average four-quarter earnings beat of 28.56%. The consensus mark for 2018 bottom line has been revised 15.8% upward in the last 90 days to 0.66 cents.

NRG Energy pulled off an average four-quarter positive earnings surprise of 507.93%. The consensus estimate for 2019 EPS has been raised 2% in the last 90 days to $3.62.

Will You Make a Fortune on the Shift to Electric Cars?
Here’s another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It’s not the one you think.

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