Xcel Energy Inc. (XEL): An Unstoppable Force in Energy Delivery
XEL's Soaring Performance
Investment Outlook on Xcel Energy Shares: Bullish or Bearish Sentiment on the Street?
Minneapolis-based powerhouse Xcel Energy Inc. (XEL) has been leaving competitors in the dust, climbing a staggering 27.8% over the past 52 weeks while the broader S&P 500 Index ($SPX) inched up only 8.6%. Even more impressively, shares of XEL have gained a substantial 4.6% on a YTD basis compared to SPX's 3.8% decline.
Behind the Scenes: XEL vs. the Utilities Select Sector SPDR Fund (XLU)
XEL Energy has not only kept up with the pace but outshone its peers, outperforming the Utilities Select Sector SPDR Fund's (XLU) 12.5% surge over the same 52-week period.
Q1 2025 Earnings: A Mixed Bag
After reporting its Q1 2025 earnings on Apr. 24, Xcel Energy saw a minor dip with shares falling 1.8%. Despite this temporary setback, the company posted a robust 7% year-over-year revenue increase of $3.9 billion, primarily driven by all segments' growth. However, earnings per share missed the mark, coming in at $0.84, falling short of the anticipated $0.93 analysts' estimate. For fiscal 2025, the company anticipates EPS to range between $3.75 and $3.85.
A Closer Look: Future Projections and Analyst Expectations
Analysts predict a steady climb for XEL's EPS as they foresee an 8.9% year-over-year increase to $3.81 for the current fiscal year ending in December 2025. However, Xcel Energy's track record for surprising analysts with its earnings is inconsistent, with the company reportedly missing the consensus estimates in the last four quarters.
As of writing, Xcel Energy is trading below the mean price target of $77.28, offering potential upside of 17.5%.
Notable Analysts and Key Takeaways
Evercore ISI analyst Durgesh Chopra recently upped his price target for XEL to $77, while maintaining an "Outperform" rating. As of this writing, the consensus among analysts rating XEL is a resounding "Strong Buy." But remember, always do your own research before making any investment decisions.
- In the face of the company's Q1 2025 earnings report, which showed a minor dip in Xcel Energy's share price but a strong 7% year-over-year revenue increase, some investors might be considering opportunities for stock-market investment in XEL.
- As Xcel Energy continues to perform better than the S&P 500 Index and its peers, such as the Utilities Select Sector SPDR Fund (XLU), it presents an appealing option for those interested in finance and long-term investing in the stock-market.
