Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

For Immediate Releases Chicago, IL – April 15, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include American Water Works Co. Inc. (AWK) , Exelon Corp. (EXC) , CenterPoint Energy Inc. (CNP) , The Progressive Corp. (PGR) and Brown & Brown Inc. (BRO) . Here are highlights from Tuesday's Analyst Blog: U.S. stock markets ar ...

Core Viewpoint - Exelon Corporation (EXC) is positioned as a strong investment option in the utility sector due to its systematic investments aimed at enhancing transmission and distribution infrastructure, which will improve service reliability and operational resilience [1] Group 1: Growth Projections - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has risen by 1.1% to $2.66 over the past 60 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $23.99 billion, reflecting a year-over-year increase of 4.2% [2] - Exelon's long-term earnings growth rate is estimated at 5.99%, with a trailing four-quarter average earnings surprise of 7.6% [2] Group 2: Solvency - The time-to-interest earned ratio at the end of Q4 2024 was 2.4, indicating the company's strong ability to meet future interest obligations [3] Group 3: Dividend Growth - Exelon has declared a quarterly dividend of 40 cents per share for Q1 2025, leading to an annualized dividend of $1.60 [4] - The company aims to increase its dividend per share at a rate of 5-7% annually through 2028, subject to board approval, with a long-term dividend payout ratio projected at 60% [5] - Exelon's current dividend yield stands at 3.41%, outperforming the Zacks S&P 500 composite average of 1.38% [5] Group 4: Strategic Investments - Exelon plans to invest nearly $38 billion in regulated utility operations from 2025 to 2028, marking a 10% increase from previous plans [6] - The investment allocation includes $21.7 billion for electric distribution, $12.6 billion for electric transmission, and $3.8 billion for gas delivery [6] Group 5: Share Price Performance - Over the past three months, Exelon's stock has returned 19.1%, significantly outperforming the industry's growth of 1.8% [7]

Group 1 - Exelon (EXC) has a strong history of beating earnings estimates and is well-positioned for continued success in its upcoming quarterly report [1][2] - The company has surpassed earnings estimates by an average of 7.22% over the last two quarters, with a recent surprise of 8.47% for the latest quarter [2] - Recent estimates for Exelon have been increasing, indicating a positive outlook for its earnings potential [4][7] Group 2 - Exelon currently has an Earnings ESP of +1.05%, suggesting analysts are optimistic about its near-term earnings [7] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) indicates a high likelihood of another earnings beat [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5]

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]