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]

Market Overview - U.S. stock markets are experiencing extreme volatility in April due to the "Liberation Day" tariffs imposed by the Trump administration, with a baseline tariff of 10% on all imports and rates as high as 145% for certain countries like China [1][2] - The S&P 500 index is currently in correction territory, trading almost in bear market zone, with a year-to-date decline of 8.6% [3] Investment Opportunities - Despite the overall market downturn, a handful of S&P 500 stocks have provided double-digit returns year to date, with five recommended stocks carrying a favorable Zacks Rank of 2 (Buy): American Water Works Co. Inc. (AWK), Exelon Corp. (EXC), CenterPoint Energy Inc. (CNP), The Progressive Corp. (PGR), and Brown & Brown Inc. (BRO) [4] American Water Works Co. Inc. (AWK) - AWK is benefiting from contributions from acquired assets and military contracts, with new water and wastewater rates boosting performance [8] - The company is expanding operations through organic and inorganic initiatives, with 17 pending acquisitions expected to add 24,200 customers [10] - AWK has expected revenue and earnings growth rates of 1.6% and 6.1%, respectively, for the current year, with a 0.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [11] Exelon Corp. (EXC) - Exelon's investments are aimed at strengthening its transmission and distribution infrastructure, with initiatives in grid modernization improving operational resilience [12] - The company has expected revenue and earnings growth rates of 4.2% and 6.4%, respectively, for the current year, with a 0.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [13] CenterPoint Energy Inc. (CNP) - CNP is positioned to benefit from increasing electricity demand due to the electrification of transportation and investments in renewable energy [14] - The company has expected revenue and earnings growth rates of 3.2% and 8%, respectively, for the current year, with a 0.6% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [17] The Progressive Corp. (PGR) - PGR is gaining from higher premiums and a strong product portfolio, focusing on becoming a one-stop insurance destination [18] - The company has expected revenue and earnings growth rates of 16.1% and 10.9%, respectively, for the current year, with a 1% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [19] Brown & Brown Inc. (BRO) - BRO's growth trajectory is driven by organic and inorganic initiatives, enhancing its capabilities and geographic reach [20] - The company has expected revenue and earnings growth rates of 8.4% and 9.1%, respectively, for the current year, with a 0.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [22]

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]

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]