Xcel Energy outperforms utilities as analysts maintain bullish view
Xcel shares have outpaced the broader utility sector over the past year, while 18 analysts assign the stock a consensus Strong Buy rating.
Xcel Energy shares have outperformed the utility sector over the past year, supported by expectations of rising electricity demand and investment in clean energy.
The stock returned 3.6% over the past 52 weeks, compared with a marginal decline for the State Street Utilities Select Sector SPDR ETF (XLU). Xcel has gained 2.2% year to date, while the ETF has marginally declined. Over three months, however, Xcel fell 3.5%, compared with a 3.8% decline for XLU.
Shares remain 10.7% below their 52-week high of US$84.23 and have traded below their 200-day moving average since May. Xcel has nonetheless outperformed rival WEC Energy Group, whose shares have declined marginally year to date and fallen 4% over the past 52 weeks.
Investor optimism has been linked to anticipated electricity-demand growth from artificial intelligence, data centres, industrial activity and electrification. Xcel’s clean-energy investments, nuclear life extensions, major customer contracts and expanding capital plan have also supported expectations for rate-base and earnings growth.
Yahoo Finance, distributing an article originally published on Barchart.com, said 18 analysts held a consensus Strong Buy rating on Xcel. Their mean price target was US$92, reported as 21.9% above current levels.
The rating and target are reported consensus figures rather than a guarantee of future performance. The source did not specify the basis or timing of the analysts’ views or the share price used to calculate the premium.
