Xcel (XEL) Moves 6.7% Higher: Will This Strength Last?

Core Viewpoint - Xcel Energy is experiencing positive market reactions due to a recent settlement and strong growth expectations in earnings and revenue, positioning the company favorably in the utility sector [2][3]. Group 1: Stock Performance - Xcel Energy shares increased by 6.7% to close at $77.93, with trading volume significantly higher than usual [1]. - The stock had a modest gain of 0.7% over the past four weeks, indicating a recent uptick in investor interest [1]. Group 2: Legal Settlement - Xcel Energy has settled the 2021 Marshall Fire lawsuit for $640 million, with nearly $350 million covered by insurance, alleviating a major liability for the company [2]. - The settlement allows Xcel Energy to focus on delivering reliable services without the burden of ongoing litigation [2]. Group 3: Earnings and Revenue Expectations - Xcel Energy anticipates a total customer request for data centers of nearly 8.9 gigawatts by 2029, indicating strong future demand [3]. - The company is expected to report quarterly earnings of $1.35 per share, reflecting an 8% year-over-year increase, with revenues projected at $3.95 billion, up 8.3% from the previous year [3]. - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, suggesting stability in earnings expectations [5]. Group 4: Industry Context - Xcel Energy operates within the Zacks Utility - Electric Power industry, where another competitor, FirstEnergy, has also shown modest stock performance [5]. - FirstEnergy's consensus EPS estimate has remained unchanged at $0.71, representing a 16.5% decline from the previous year [6].