Here's Why You Should Add Exelon Stock to Your Portfolio Now

Exelon Corporation’s EXC systematic investment should strengthen its transmission and distribution infrastructure and assist in providing reliable services to its customers. Exelon's initiatives in grid modernization are likely to improve the resilience of its operations. Given its growth opportunities, EXC makes for a solid investment option in the utility sector.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.EXC’s Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.4% to $2.64 in the past seven days.The Zacks Consensus Estimate for 2025 sales is pinned at $23.81 billion, indicating a year-over-year increase of 3.4%.Exelon's long-term (three to five years) earnings growth rate is 5.71%. The company delivered a trailing four-quarter average earnings surprise of 7.6%.EXC’s SolvencyThe time-to-interest earned ratio at the end of the fourth quarter of 2024 was 2.4. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.EXC’s Dividend GrowthExelon’s stable performance and cash flows allow it to reward its shareholders through continuous dividend payments. Management declared a quarterly dividend of 40 cents per share for first-quarter 2025, resulting in an annualized dividend of $1.60.The company aims to increase dividend per share at the low end of its targeted 5-7% range annually through 2028, subject to the approval of its board of directors. Exelon is projecting a long-term dividend payout ratio of 60%, which is in sync with the long-term dividend growth target. Its current dividend yield is 3.66%, better than the Zacks S&P 500 composite's average of 1.26%.EXC’s Focus on Strategic InvestmentsExelon invests substantially in infrastructure projects and plans to invest nearly $38 billion during 2025-2028 in regulated utility operations. The new capital expenditure indicates a 10% increase from the prior plan and will be utilized to support customer needs and grid reliability. The company is set to invest $21.7 billion in electric distribution, $12.6 billion in electric transmission and $3.8 billion in gas delivery in the 2025-2028 period.The systematic investments will support rate-based growth of nearly 7.4% through 2028 from the 2024 base. EXC also targets long-term EPS growth of 5-7% annually over the 2024-2028 period.EXC’s Share Price PerformanceIn the past six months, the stock has returned 11.6% against the industry’s decline of 1.1%. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Ameren Corporation AEE, NiSource NI and CenterPoint Energy CNP, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.AEE’s long-term earnings growth rate is 6.72%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 6.7% from the bottom line recorded in 2024.NI’s long-term earnings growth rate is 8.19%. The Zacks Consensus Estimate for 2025 EPS implies an improvement of 9.1% from the bottom line recorded in 2024.CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for 2025 EPS indicates year-over-year growth of 8%. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report Ameren Corporation (AEE): Free Stock Analysis Report NiSource, Inc (NI): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks