Market Overview - Wall Street is anticipating a challenging start to the week, with fears of a repeat of the 1987 Black Monday, which saw a 22.6% market plunge [5][6] - Major indexes, including Dow, S&P 500, and Nasdaq, are expected to open 6% lower, potentially making last week's $6.6 trillion losses appear minor [6] Economic Impact - President Trump's recent tariffs have caused global market turmoil, leading to uncertainty among investors regarding future market reactions [6][7] - Trump stated he would not engage in trade deals until trade deficits are addressed, which may prolong market distress until clarity on the tariffs' economic impact is achieved [7] Investment Recommendations - In light of the current market conditions, investing in safe-haven stocks, particularly in the utilities sector, is advised [3][4] - Recommended utility stocks include: - **Avista Corporation (AVA)**: Expected earnings growth rate of 14%, Zacks Rank 1, beta of 0.38, and a dividend yield of 4.81% [9] - **CMS Energy Corporation (CMS)**: Expected earnings growth rate of 7.8%, Zacks Rank 2, beta of 0.34, and a dividend yield of 2.99% [11] - **Exelon Corporation (EXC)**: Expected earnings growth rate of 6.4%, Zacks Rank 2, beta of 0.39, and a dividend yield of 3.53% [13] - **Southwest Gas Holdings, Inc. (SWX)**: Expected earnings growth rate of 17.1%, Zacks Rank 2, beta of 0.50, and a dividend yield of 3.60% [15]

Core Viewpoint - Investors in the Utility - Electric Power sector should consider Exelon (EXC) and WEC Energy Group (WEC) as potential undervalued stocks [1] Group 1: Investment Metrics - Both Exelon and WEC Energy Group currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - Value investors typically analyze traditional metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to identify undervalued stocks [4] Group 2: Valuation Comparisons - Exelon has a forward P/E ratio of 17.31, while WEC has a forward P/E of 20.79, suggesting Exelon may be the more attractive option based on this metric [5] - Exelon’s PEG ratio is 3.03, compared to WEC’s PEG ratio of 3.06, indicating similar expected earnings growth rates [5] - Exelon has a P/B ratio of 1.72, while WEC’s P/B ratio is 2.70, further supporting Exelon’s stronger valuation profile [6] - Based on these valuation metrics, Exelon is rated with a Value grade of B, while WEC has a Value grade of D, highlighting Exelon as the superior value option [6][7]

Core Viewpoint - Exelon (EXC) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][4]. - Rising earnings estimates for Exelon suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - Exelon's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Exelon - For the fiscal year ending December 2025, Exelon is projected to earn $2.65 per share, reflecting a 6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Exelon has risen by 0.4%, indicating a positive trend in earnings expectations [8].

Core Viewpoint - Exelon has seen a 1.2% increase in share price since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1]. Earnings Estimates - Estimates for Exelon have remained flat over the past two months, indicating stability in expectations [2]. VGM Scores - Exelon has an average Growth Score of C, a Momentum Score of B, and a Value Score of C, placing it in the middle 20% for the value investment strategy. The aggregate VGM Score for the stock is B, which is relevant for investors not focused on a single strategy [3]. Outlook - Exelon holds a Zacks Rank of 3 (Hold), suggesting an expectation of in-line returns from the stock in the upcoming months [4]. Industry Performance - Exelon is part of the Zacks Utility - Electric Power industry. WEC Energy Group, another player in the same industry, has gained 1.3% over the past month. WEC Energy reported revenues of $2.28 billion for the last quarter, reflecting a year-over-year increase of 3%, with EPS rising from $1.10 to $1.43 [5]. - WEC Energy is projected to post earnings of $2.27 per share for the current quarter, indicating a year-over-year growth of 15.2%. The Zacks Consensus Estimate for WEC Energy has seen a slight increase of 0.2% over the last 30 days, and it also holds a Zacks Rank of 3 (Hold) [6].

Core Viewpoint - Exelon Corporation is focusing on strengthening its transmission and distribution infrastructure to meet rising customer demand while maintaining stable operations and generating steady cash flow to reward shareholders [1] Group 1: Investments and Growth - Exelon plans to invest nearly $38 billion during the 2025-2028 period in regulated utility operations for grid modernization and infrastructure resilience [2] - The company will allocate $21.7 billion for electric distribution, $12.6 billion for electric transmission, and $3.8 billion for gas delivery during the same period, supporting a rate base growth of 7.4% through 2028 [3] - Exelon targets long-term earnings per share (EPS) growth of 5-7% through 2028 [3] Group 2: Customer Benefits - Exelon serves over 10 million customers, who benefit from tax reforms, energy efficiency programs, and ongoing cost-saving initiatives [4] - The company manages expenses efficiently, keeping costs below the rate of inflation, which further benefits customers [4] - Approximately 78% of Exelon's distribution revenues are decoupled, insulating the company from load fluctuations and leading to stable earnings [5] Group 3: Industry Challenges - Emerging technologies may disrupt the energy industry and affect energy delivery structures, potentially lowering demand for Exelon's services [6] - Failures in equipment or facilities could interrupt electric and gas delivery, resulting in revenue loss and increased maintenance costs [7]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps investors identify stocks with momentum by focusing on key metrics [2] Group 2: Exelon (EXC) Performance - Exelon currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating strong potential for outperformance [3][4] - Over the past week, Exelon shares increased by 1.87%, outperforming the Zacks Utility - Electric Power industry, which rose by 1.06% [6] - In the last quarter, Exelon shares rose by 16.43%, significantly outperforming the S&P 500, which declined by 5.43% during the same period [7] Group 3: Trading Volume and Earnings Outlook - Exelon's average 20-day trading volume is 8,302,144 shares, indicating strong market interest [8] - Recent earnings estimate revisions show a positive trend, with 3 estimates moving higher and the consensus estimate increasing from $2.63 to $2.64 [10] - For the next fiscal year, 4 estimates have moved upwards with no downward revisions, suggesting a favorable earnings outlook [10] Group 4: Conclusion - Given the positive momentum indicators and earnings outlook, Exelon is positioned as a strong buy candidate for investors seeking short-term opportunities [11]

Group 1 - The article reflects on the S&P 500's performance five years after the significant 34% decline due to COVID-19, highlighting that many investors initially believed equities would recover quickly [1] - February 19, 2020, is noted as a day when investors were optimistic about the market's resilience against the emerging pandemic [1] Group 2 - The author emphasizes the importance of creating engaging financial content that is accessible and measurable, focusing on thematic investing and market events [1] - The narrative aims to relate to everyday investors by analyzing various market sectors, economic data, and conditions [1]

Investment and Financial Performance - Exelon plans to invest approximately $38 billion over the next four years in electric and natural gas infrastructure improvements, which is projected to increase the current rate base by approximately $20 billion by the end of 2028[66]. - Exelon reported a significant increase in revenue, reaching $15.2 billion for the fiscal year, representing a 10% year-over-year growth[112]. - The company achieved a net income of $2.1 billion, which is a 12% increase compared to the previous year[112]. - Exelon plans to invest $3 billion in renewable energy projects over the next five years, aiming for a 30% reduction in greenhouse gas emissions by 2030[120]. - The company has outlined a performance guidance for the next fiscal year, projecting earnings per share (EPS) in the range of $3.00 to $3.20[112]. - Exelon is actively pursuing strategic acquisitions to enhance its service offerings, with a target of completing at least two acquisitions by the end of 2025[120]. Environmental Commitment and Emissions Reduction - Exelon aims to collectively reduce its operations-driven GHG emissions by 50% by 2030 against a 2015 baseline and achieve net-zero operations-driven GHG emissions by 2050[67]. - Exelon's Scope 1 and 2 GHG emissions in 2023 were just over 5.3 million metric tons CO2 equivalent, with 0.4 million metric tons being operations-driven emissions[85]. - Approximately 92% of Exelon's emissions are indirect, primarily from electric transmission and distribution losses, totaling around 4.9 million metric tons CO2 equivalent[85]. - The estimated investment in customer energy efficiency programs across Utility Registrants from 2025 to 2028 is $4.9 billion[86]. - Exelon is committed to supporting public policy for vehicle electrification and clean energy initiatives to reduce GHG emissions[87]. - Exelon plans to electrify 30% of its vehicle fleet by 2025, increasing to 50% by 2030[87]. Operational Excellence and Customer Engagement - Exelon focuses on maintaining operational excellence and meeting financial commitments while supporting clean energy policies that advance clean energy targets[63]. - Exelon is committed to enhancing customer experience and advancing clean and affordable energy choices while ensuring fair financial returns through ratemaking mechanisms[64]. - Exelon is committed to enhancing customer engagement through digital platforms, aiming for a 20% increase in customer satisfaction scores by the end of the next fiscal year[120]. - User data showed a 5% increase in customer accounts across all subsidiaries, totaling approximately 10 million customers[112]. - The average turnover rate for Exelon employees from 2022 to 2024 is 2.80% for retirement, 3.00% for voluntary, and 1.00% for non-voluntary[76]. Regulatory and Compliance Challenges - The company is subject to comprehensive environmental legislation and regulation at various levels, impacting its operations and compliance strategies[80]. - The Registrants are subject to significant risks from legal proceedings, which could result in lost revenue or increased expenditures[124]. - The Deferred Prosecution Agreement and SEC settlement could adversely impact Exelon's and ComEd's reputation and relationships with stakeholders, affecting operational approvals[126][127]. - The company has identified regulatory compliance as a key risk factor, which could impact future earnings if not managed effectively[113]. Risks and Challenges - The Registrants face increasing cybersecurity risks, with potential impacts on operations and financial condition due to sophisticated attacks[130][132]. - Extreme weather events and natural disasters could negatively affect the Registrants' operations and capital expenditures, leading to increased costs[134]. - The Registrants' operations are capital intensive, requiring significant investments, and disruptions in supply chains could materially impact capital projects[140]. - Insufficient third-party power generation capacity could lead to service interruptions and financial impacts for the Registrants[141][142]. - Transmission congestion and failures in neighboring systems could strain the Registrants' ability to deliver electricity and comply with reliability standards[143]. - The Registrants face potential operational challenges and increased costs due to workforce issues, including employee strikes and skill mismatches, which could lead to higher training and productivity loss costs[146]. - Poor performance by third-party contractors could adversely impact capital execution plans and operations, leading to financial and reputational consequences[147]. - The Utility Registrants are exposed to risks from new business initiatives like smart grids, which may not achieve intended financial results due to regulatory and technological challenges[148]. - Economic downturns and increased customer rates may lead to higher uncollectible customer balances, negatively affecting revenues for the Utility Registrants[156]. - Weather conditions significantly influence electricity and natural gas demand, with extreme weather potentially increasing maintenance costs and limiting capacity to meet peak demand[158]. - The Registrants rely on capital markets for liquidity, with approximately 17% of available credit facilities tied to European banks, exposing them to global market disruptions[152]. - A downgrade in credit ratings could require the Registrants to provide significant collateral, adversely affecting liquidity and increasing borrowing costs[153]. - The Registrants could incur substantial costs due to non-performance by third parties under indemnification agreements, impacting financial stability[165]. - Changes in market performance could decrease the value of employee benefit plan assets, increasing funding requirements for pension and OPEB plans[168].

February 12, 2025 Earnings Conference Call Fourth Quarter 2024 Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of federal securities laws that are subject to risks and uncertainties. Words such as "could," "may," "expects," "anticipates," "will," "targets," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," "predicts," "should," and variations on such words, and similar expressions that refle ...

Exelon Corporation. (NASDAQ:EXC) Q4 2024 Earnings Conference Call February 12, 2025 10:00 AM ET Company Participants Andrew Plenge - Vice President, Investor Relations Calvin Butler - President and Chief Executive Officer Jeanne Jones - Chief Financial Officer Colette Honorable - Executive Vice President, Public Policy and Chief External Affairs Officer Michael Innocenzo - Chief Operating Officer Carim Khouzami - President and CEO of Baltimore Gas & Electric Company David Velazquez - President & CEO of PECO ...