Group 1 - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research framework identifies companies with durable business models, mispriced cash flow potential, and intelligent capital allocation, emphasizing a structured and repeatable approach [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability, simplicity, and relevance [1] Group 2 - Research coverage focuses on underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - Moretus Research aims to elevate the standard for independent investment research by providing professional-grade insights and actionable valuation [1]

Core Viewpoint - Exelon Corporation (EXC) is expected to be a consistent performer in the utility industry due to its investments in grid modernization, electric transmission, and cost-saving efforts, despite facing risks related to equipment failures [1] Group 1: Investments and Growth - Exelon plans to invest over $38 billion in regulated utility operations from 2025 to 2028, representing a 10% increase over previous plans, aimed at meeting customer needs and maintaining grid reliability [2] - The systematic investments are projected to ensure a rate-based growth of approximately 7.4% from 2024 to 2028, with approved distribution rates expected to enhance revenues and profitability [3] - Exelon serves over 10 million customers, benefiting from tax reforms, energy efficiency programs, and effective cost management, keeping expenses below inflation [3][7] Group 2: Risks and Challenges - Risks include potential failures of equipment or facilities in delivery systems, which could disrupt electric transmission and supply, leading to revenue losses and increased maintenance costs [4] - Extreme weather conditions or storm damage may strain transmission and distribution systems, resulting in higher maintenance expenditures and reduced capacity to meet peak demands [5] Group 3: Stock Performance - Over the past six months, EXC shares have increased by 14%, outperforming the industry growth of 7.6% [6][7]

Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - Investing in safer asset classes like utilities can yield compelling total returns while offering higher yields compared to other sectors [2] - The article emphasizes the importance of due diligence and independent conclusions for investment decisions [3] Group 2 - Seeking Alpha clarifies that past performance does not guarantee future results and that no specific investment recommendations are provided [4]

Core Viewpoint - Exelon (EXC) has shown a downtrend recently, losing 5.5% over the past four weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with reduced selling pressure, suggesting that bulls may be gaining control [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, indicating that the stock opened lower, made a new low, but closed near its opening price, reflecting buying interest [4][5]. - This pattern can occur across various timeframes and is utilized by both short-term and long-term investors [5]. Fundamental Analysis - There is a strong consensus among Wall Street analysts to raise earnings estimates for Exelon, which supports the bullish case for the stock [2][7]. - Over the last 30 days, the consensus EPS estimate for the current year has increased by 1.2%, indicating improved earnings expectations from analysts [8]. - Exelon currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which historically outperforms the market [9].

Group 1 - The primary focus of income investors is generating consistent cash flow from liquid investments, including stocks, bonds, and dividends [1][2] - Dividends are a significant component of long-term returns, often contributing over one-third of total returns [2] - Exelon (EXC), a utility company based in Chicago, has experienced a stock price increase of 17.59% year-to-date and currently pays a dividend of $0.8 per share, yielding 3.62% [3] Group 2 - Exelon's annualized dividend of $1.60 represents a 5.3% increase from the previous year, with an average annual increase of 0.01% over the last five years [4] - The company's current payout ratio is 58%, indicating that it pays out 58% of its trailing 12-month earnings per share as dividends [4] - The Zacks Consensus Estimate projects Exelon's earnings to grow to $2.70 per share in 2025, reflecting an 8% increase from the previous year [5] Group 3 - High-yielding stocks may face challenges during periods of rising interest rates, but Exelon is considered a compelling investment opportunity due to its strong dividend profile [7] - Exelon holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [7]

Core Viewpoint - Exelon Corporation (EXC) is positioned as a strong investment option in the utility sector due to its investment plans aimed at enhancing transmission and distribution infrastructure, which will improve service reliability and operational resilience [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for 2025 earnings per share (EPS) has risen by 1.1% to $2.67 over the past 60 days [2] - The Zacks Consensus Estimate for 2025 sales is projected at $24.11 billion, reflecting a year-over-year increase of 4.7% [2] - Exelon's long-term earnings growth rate is estimated at 6.42%, with a trailing four-quarter average earnings surprise of 10.1% [2] Return on Equity (ROE) - Exelon's current ROE stands at 10.29%, slightly above the sector average of 10.2%, indicating effective utilization of shareholders' funds to generate income [3] Dividend Growth - Exelon maintains a quarterly dividend of 40 cents per share, translating to an annualized dividend of $1.60 [4] - The company aims to increase its dividend per share by 5-7% annually through 2028, pending board approval, with a long-term dividend payout ratio projected at 60% [5] - Exelon's current dividend yield is 3.79%, significantly higher than the Zacks S&P 500 composite average of 1.54% [5] Solvency - The time-to-interest earned ratio at the end of Q1 2024 was 2.5, indicating the company's strong ability to meet future interest obligations [6] Focus on Strategic Investments - Exelon plans to invest nearly $38 billion in regulated utility operations from 2025 to 2028, with allocations of $21.7 billion for electric distribution, $12.6 billion for electric transmission, and $3.8 billion for gas delivery [7] Share Price Performance - Over the past six months, Exelon's stock has returned 10.7%, outperforming the industry's growth of 0.2% [8]

Core Viewpoint - Investors in the Utility - Electric Power sector should consider Exelon (EXC) and NextEra Energy (NEE) for potential value opportunities [1] Group 1: Company Rankings and Earnings Outlook - Exelon (EXC) has a Zacks Rank of 2 (Buy), while NextEra Energy (NEE) has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes companies with positive earnings estimate revisions, indicating that EXC's earnings outlook is improving more significantly than NEE's [3] Group 2: Valuation Metrics - EXC has a forward P/E ratio of 15.80, compared to NEE's forward P/E of 19.64 [5] - EXC's PEG ratio is 2.46, while NEE's PEG ratio is slightly higher at 2.54 [5] - EXC's P/B ratio is 1.54, significantly lower than NEE's P/B ratio of 2.46 [6] Group 3: Value Grades - Based on various valuation metrics, EXC holds a Value grade of B, whereas NEE has a Value grade of D [6] - EXC is considered the superior value option due to its solid earnings outlook and favorable valuation figures [6]

Core Viewpoint - Exelon (EXC) has experienced significant selling pressure, declining 9.2% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory, supported by analyst expectations of better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating oversold conditions [2]. - EXC's current RSI reading is 28.78, suggesting that the heavy selling may be exhausting itself and a trend reversal could occur soon [5]. - The RSI helps investors identify potential entry opportunities when a stock is undervalued due to unwarranted selling pressure [3]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for EXC will improve, with a 1.3% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [7]. - EXC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate trends and EPS surprises, indicating a strong potential for a turnaround [8].

Company Overview - Exelon (EXC) is headquartered in Chicago and operates in the Utilities sector, with a stock price change of 23.49% since the beginning of the year [3] - The company currently pays a dividend of $0.4 per share, resulting in a dividend yield of 3.44%, which is higher than the Utility - Electric Power industry's yield of 2.98% and the S&P 500's yield of 1.6% [3] Dividend Performance - Exelon's annualized dividend of $1.60 has increased by 5.3% from the previous year, with a historical average annual increase of 0.01% over the last 5 years [4] - The current payout ratio is 58%, indicating that Exelon pays out 58% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Exelon's earnings in 2025 is projected at $2.67 per share, reflecting a year-over-year earnings growth rate of 6.80% [5] Investment Appeal - Exelon is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Group 1 - Exelon (EXC) is currently outperforming its peers in the Utilities sector with a year-to-date return of 23.5%, compared to the sector average of 6.7% [4] - Exelon holds a Zacks Rank of 2 (Buy), indicating positive analyst sentiment and an improving earnings outlook, with a 2.4% increase in the consensus estimate for its full-year earnings over the past quarter [3] - The Utilities sector, which includes 106 individual stocks, ranks 1 in the Zacks Sector Rank, reflecting strong overall performance [2] Group 2 - Exelon is part of the Utility - Electric Power industry, which consists of 60 companies and currently ranks 41 in the Zacks Industry Rank, with an average gain of 7.2% year-to-date [5] - Another notable stock in the Utilities sector is Tele2 (TLTZY), which has seen a year-to-date increase of 51.8% and also holds a Zacks Rank of 2 (Buy) [4] - The Wireline Non-US industry, to which Tele2 belongs, is ranked 3 but has experienced a decline of 27.1% year-to-date [5]