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]

Group 1 - Exelon Corporation (NASDAQ: EXC) was previously identified as a buy due to its superior performance compared to other utilities across various metrics [1] - The analysis emphasizes the company's potential for value return to investors, highlighting its underappreciated status in the market [1] Group 2 - The author has extensive experience in investment analysis, focusing on deep-discount value plays and contrarian investment philosophy [1]

Back in November, I selected Exelon (NASDAQ: EXC ) as a top utility for 2025, rating the stock a Strong Buy at $37. It has been one of the best performers in the sector over the past six months, up ~25% Joseph Jones, professor at The University of Southern Mississippi, has over fifteen years of experience studying the market. He focuses on portfolio construction from a dividend growth investor's perspective. The insights expressed in his research are solely his own; they do not represent the views or financ ...

Market Overview - The S&P 500 Index has recovered all losses from the tariff-related market turmoil, achieving a nine-day winning streak for the first time since November 2004 [1] - The index was previously down nearly 20% from its all-time high during the April turmoil but has since rebounded and is currently about 7% away from its peak recorded in February [2] Investment Recommendations - Five S&P 500 stocks are recommended for investment, all having provided over 20% returns year to date: Netflix Inc. (NFLX), Philip Morris International Inc. (PM), Newmont Corp. (NEM), CenterPoint Energy Inc. (CNP), and Exelon Corp. (EXC) [3][4] Company Insights Netflix Inc. (NFLX) - NFLX exceeded earnings estimates while maintaining healthy engagement levels despite trade and tariff challenges, reaffirming its 2025 guidance [8] - The launch of its Ad Suite in the U.S. is expected to drive subscriber and average revenue per user (ARPU) growth, with strong visibility in its business leading to positive earnings estimate revisions [9] - NFLX's expected revenue and earnings growth rates for the current year are 14% and 27.7%, respectively, with a 3.1% improvement in earnings estimates over the last 30 days [11] Philip Morris International Inc. (PM) - PM is experiencing strong pricing power and growth in its smoke-free product portfolio, aiming to become substantially smoke-free by 2030 [12] - The company anticipates a 2% increase in volume growth for the fifth consecutive year, with smoke-free products projected to grow by 12-14% [13] - PM's expected revenue and earnings growth rates for the current year are 8.1% and 13.7%, respectively, with a 4.6% improvement in earnings estimates over the last 30 days [14] Newmont Corp. (NEM) - NEM is progressing with growth projects, including the Tanami expansion and the Ahafo North project, which is expected to commence commercial production in the second half of 2025 [15][16] - The company has an expected revenue growth rate of 0.1% and an earnings growth rate of 16.7% for the current year, with a significant 23.4% improvement in earnings estimates over the last 30 days [17] CenterPoint Energy Inc. (CNP) - CNP is set to benefit from rising electricity demand due to the electrification of transportation and investments in renewable energy [18] - The company is investing in infrastructure upgrades to support the growing electric vehicle market, including off-road electrification initiatives [20] - CNP's expected revenue and earnings growth rates for the current year are 3.4% and 8%, respectively, with a slight 0.1% improvement in earnings estimates over the last 60 days [21] Exelon Corp. (EXC) - EXC is focusing on strengthening its transmission and distribution infrastructure, which will enhance service reliability and operational resilience [22] - The company is expected to see revenue and earnings growth rates of 4.3% and 6.8%, respectively, with a 0.4% improvement in earnings estimates over the last 30 days [23]

Exelon Corporation EXC reported better-than-expected earnings for the first quarter on Thursday.The company posted quarterly earnings of 92 cents per share which beat the analyst consensus estimate of 88 cents per share. The company reported quarterly sales of $6.71 billion which beat the analyst consensus estimate of $6.59 billion.“The first quarter has put us firmly on the path to deliver within our full-year earnings guidance, through our unwavering commitment to safety, reliability and efficient executi ...

Financial Performance - Exelon's net income attributable to common shareholders increased by $250 million to $908 million for the three months ended March 31, 2025, compared to $658 million in the same period of 2024[353]. - Diluted earnings per share rose to $0.90 in 2025 from $0.66 in 2024, reflecting a significant improvement in financial performance[353]. - Adjusted (non-GAAP) operating earnings for the same period increased to $932 million, or $0.92 per diluted share, compared to $685 million, or $0.68 per diluted share in 2024[355]. - ComEd's net income for the three months ended March 31, 2025, increased by $109 million to $302 million, primarily due to higher distribution and transmission rate base and increased return on regulatory assets[378]. - PECO's net income increased by $117 million to $266 million, attributed to increased revenues and a decrease in income tax expense[389]. - Net income for BGE decreased by $4 million to $260 million for the three months ended March 31, 2025, primarily due to increased operating expenses and interest expense[407]. - PHI's net income increased by $26 million to $194 million for the three months ended March 31, 2025, primarily due to favorable impacts from multi-year plans and higher transmission rates[422]. - Net income for Pepco rose by $22 million to $97 million, primarily due to favorable impacts from multi-year plans and higher transmission rates[424]. - DPL's net income increased by $3 million to $69 million, driven by favorable weather conditions and higher DSIC rates[435]. Revenue and Expenses - ComEd recorded a charge of $70 million for probable disallowance of certain capitalized construction costs due to a settlement with FERC[368]. - Operating revenues for BGE increased by $257 million to $1,554 million for the three months ended March 31, 2025, compared to $1,297 million in 2024[407]. - Operating revenues for Pepco increased by $100 million, reaching $859 million for the three months ended March 31, 2025, compared to $759 million in the same period of 2024[424]. - DPL's operating revenues increased by $57 million to $548 million for the three months ended March 31, 2025, compared to $491 million in 2024[435]. - ComEd's total operating expenses decreased by $190 million to $1,591 million, with a significant reduction in purchased power expense by $218 million[378]. - Operating and maintenance expenses for BGE increased by $41 million, driven by labor and regulatory required programs[416]. - Effective income tax rates for ComEd were 17.7% for Q1 2025, compared to 9.0% in Q1 2024[388]. - Effective income tax rates for BGE were 21.5% in 2025 compared to 8.3% in 2024[419]. - Effective income tax rates for Pepco were 20.5% for the three months ended March 31, 2025, compared to 15.7% in 2024[433]. Customer Metrics - As of March 31, 2025, the number of electric customers for PECO was 1,709,438, a slight decrease from 1,710,839 in 2024[393]. - The number of residential natural gas customers rose to 509,773 in 2025 from 508,429 in 2024, while small commercial and industrial customers decreased slightly to 44,869 from 45,038[395]. - The number of electric customers for BGE increased to 1,349,688 in 2025 from 1,341,840 in 2024[409]. - The number of electric customers in Maryland increased to 607,390, up from 602,098 in the previous year, with residential customers growing to 557,672[426]. - The total number of electric customers increased to 574,762 as of March 31, 2025, from 572,118 in 2024[456]. Regulatory and Legislative Developments - Exelon filed several distribution base rate cases in 2025, with requested revenue increases totaling $1.487 billion across various jurisdictions[361]. - The approved revenue requirement for ComEd's base rate case was $1.045 billion, effective January 1, 2024, with an approved return on equity of 8.905%[361]. - The Utility Registrants are evaluating opportunities under the $1.2 trillion Infrastructure Investment and Jobs Act, which includes funding for power and grid reliability[373]. - The IRS issued guidance that could result in a reduction of regulatory liabilities for the Registrants, potentially impacting deferred income taxes by approximately $1.2 billion to $1.7 billion[371]. - Exelon anticipates ongoing regulatory proceedings will impact future financial statements, emphasizing the importance of these developments for strategic planning[358]. Capital Expenditures and Financing - Capital expenditures for Exelon totaled $(179) million, with ComEd at $4 million, PECO at $(63) million, BGE at $(82) million, and other Registrants showing varying amounts for the three months ended March 31, 2025[469]. - Projected capital expenditures for Exelon in 2025 are estimated at $8.9 billion, with ComEd at $3.2 billion and PECO at $1.875 billion[483]. - The Registrants have access to credit facilities with aggregate bank commitments of $4.0 billion to support their financing needs[463]. - Changes in short-term borrowings for Exelon resulted in a net decrease of $(458) million, while long-term debt increased by $701 million during the same period[470]. - Exelon declared a quarterly dividend of $0.40 per share for both the first and second quarters of 2025[473]. - The Registrants issued approximately 4.0 million shares of Common stock at an average gross price of $43.42 per share, generating net proceeds of $173 million for general corporate purposes[479]. Pension and Hedging - Exelon's estimated annual qualified pension contributions will be $275 million in 2025[485]. - Exelon aims to achieve 100% funded status on an ABO basis for its pension plans over time[485]. - The Registrants utilize hedging programs to mitigate exposure to energy and natural gas price volatility[500]. - The total mark-to-market net liabilities associated with ComEd's floating-to-fixed energy swap contracts amounted to $151 million[507]. - Exelon and its subsidiaries may face increased pension contribution requirements if interest rates decline significantly[487]. Cash Flow and Liquidity - Cash flows from operating activities for the Registrants totaled $208 million for the three months ended March 31, 2025[466]. - Operating cash flow changes for the Registrants were consistent with operational results, with significant impacts noted for the three months ended March 31, 2025, and 2024[467]. - The Registrants believe their cash flows from operating activities and access to credit markets provide sufficient liquidity to support future cash requirements[477]. - Incremental collateral requirements for ComEd would be $13 million if it lost its investment grade credit rating, with available credit facility capacity of $638 million[481]. Ratings and Credit - S&P raised Exelon and PECO's long-term issuer credit rating from 'BBB+' to 'A-' and Exelon's senior unsecured debt rating from 'BBB' to 'BBB+'[493]. - The Registrants' outstanding debt is primarily fixed-rate, significantly reducing interest rate risk[505].

Exelon Corporation’s (EXC) first-quarter 2025 earnings of 92 cents per share surpassed the Zacks Consensus Estimate of 85 cents by 8.3%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)The bottom line also increased 35.3% from the year-ago level of 68 cents. Higher distribution and transmission-rate increase at Commonwealth Edison Company and Pepco Holdings LLC boosted year-over-year earnings.On a GAAP basis, earnings were 90 cents per share, which increased 36.4% from the year-ago qua ...