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Exelon (EXC) is back on investor radar after a series of customer focused moves, including a new multi year grid plan in Illinois, fresh transmission security agreements, and an added US$10 million for energy bill relief.
See our latest analysis for Exelon.
Those customer focused moves and grid plans are landing at a time when Exelon’s 1 year total shareholder return of 17.6% contrasts with a softer 90 day share price return of a 7.28% decline. This hints that shorter term momentum has cooled after a stronger multi year run, with the 5 year total shareholder return of 76.01% reflecting the longer horizon picture.
If Exelon’s recent customer and grid efforts have caught your attention, this could be a good moment to widen your watchlist with healthcare stocks that are shaping essential services in different ways.
With Exelon trading at US$44.73 and sitting at roughly an 8% intrinsic discount and around a 10% gap to analyst targets, you have to ask: is there still mispricing here, or is the market already baking in future growth?
With Exelon’s fair value estimate sitting around US$49.35 against a last close of US$44.73, the dominant narrative frames the shares as modestly undervalued and leans on long term grid and earnings visibility to support that gap.
The significant identified pipeline ($10B to $15B) in future transmission projects, combined with proven success in competitive bidding, provides clear visibility for outsized capital investment prospects that are expected to increase the regulated asset base and deliver compounding earnings and cash flow growth.
Want to see how steady revenue growth, firmer margins, and a higher future P/E are stitched together into that valuation story? The full narrative lays out the earnings path, the assumed rate base expansion, and the exact profit profile that has to materialize to support that fair value.
Result: Fair Value of $49.35 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, there are still pressure points here, including regulatory setbacks on cost recovery or weaker demand if more customers shift to their own power solutions.
Find out about the key risks to this Exelon narrative.
If you look at these assumptions and feel they miss something, you can pull up the same data, test your own views, and Do it your way in just a few minutes.
A great starting point for your Exelon research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
If Exelon has you thinking differently about your portfolio, do not stop here. Widen your search now so you are not the one catching up later.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include EXC.
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