Gold prices bounce off 3-week lows; demand likely longer term
In a robust display of market confidence, Xcel Energy Inc. (NASDAQ:XEL) stock has soared to a 52-week high, reaching a price level of $69.91. This peak reflects a significant uptrend for the utility company, which has seen an impressive 1-year change of 15.31%. Investors have shown increasing interest in Xcel Energy, as the company continues to capitalize on strategic growth opportunities and operational efficiency, propelling the stock to new heights over the past year. The 52-week high milestone underscores the positive sentiment surrounding the stock and the energy sector's potential for sustained growth.
In other recent news, Xcel Energy reported an increase in ongoing earnings per share from $1.23 to $1.25 in the third quarter of 2024, despite a $35 million charge related to a 2011 outage. The company also reaffirmed its 2024 earnings guidance of $3.50 to $3.60 per share and introduced a 2025 earnings guidance of $3.75 to $3.85 per share. Additionally, Xcel Energy has finalized additional forward sale agreements for an aggregate of 2,748,091 shares, following an initial agreement for 18,320,610 shares.
In strategic developments, Xcel Energy announced a public offering of over 18 million shares at $65.50 per share, with Barclays (LON:BARC) Bank PLC and Bank of America serving as forward purchasers in separate agreements. This offering is expected to close by 2024 and the settlement of these forward sale agreements is anticipated to occur by June 30, 2026.
Analysts from Goldman Sachs and Jefferies have shown confidence in Xcel Energy's growth. Goldman Sachs raised Xcel Energy's target to $78 and Jefferies upgraded it to Buy. This follows Xcel Energy's revised load growth forecast from 2-3% to 5% and an increased five-year capital plan by $6 billion.
Lastly, Xcel Energy announced a five-year capital investment plan of $45 billion, primarily targeting clean energy and customer electrification. The company has also settled a significant number of wildfire claims and is managing increased Operations & Maintenance expenses. These are the recent developments for Xcel Energy.
InvestingPro Insights
Xcel Energy's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is indeed trading near its 52-week high, with a strong return of 16.81% over the last three months and an impressive 27.47% over the past six months. This upward trajectory is supported by Xcel Energy's solid financial foundation and consistent dividend policy.
InvestingPro Tips highlight that Xcel Energy has maintained dividend payments for 53 consecutive years and has raised its dividend for 20 consecutive years. This remarkable track record of dividend consistency is particularly appealing to income-focused investors in the utility sector. The current dividend yield stands at 3.15%, with a dividend growth rate of 5.29% over the last twelve months.
While the stock's P/E ratio of 21.18 (adjusted for the last twelve months) suggests a premium valuation, it's worth noting that Xcel Energy has been profitable over the last twelve months and analysts predict continued profitability this year. The company's market capitalization of $40.13 billion reflects its significant presence in the utility industry.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 10 more tips available for Xcel Energy on the platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.