Xcel Energy Stock: Is XEL Outperforming the Utilities Sector?
With a market cap of $39.8 billion, Xcel Energy Inc. (XEL) is a leading U.S. utility holding company that provides electricity and natural gas services through its regulated subsidiaries. The company generates electricity from a diverse mix of energy sources, including wind, solar, nuclear, coal, and hydro, and delivers clean energy solutions across eight states.
Companies valued at more than $10 billion are generally considered 'large-cap' stocks, and Xcel Energy fits this criterion perfectly. In addition to utility services, Xcel Energy engages in natural gas pipeline development, renewable infrastructure procurement, and investments in non-regulated assets, with a strong focus on clean energy initiatives.
Shares of the Minneapolis, Minnesota-based company have dipped 6.8% from its 52-week high of $73.38. Shares of Xcel Energy have fallen marginally over the past three months, underperforming the Utilities Select Sector SPDR Fund's (XLU) 5.8% gain during the same period.
Longer term, the utility company's shares have gained 1.3% on a YTD basis, lagging behind XLU's 8.1% rise. However, XEL stock has returned 25.8% over the past 52 weeks, outperforming XLU's 16.7% increase over the same time frame.
The stock has been trading above its 200-day moving average since late July last year.
Shares of Xcel Energy fell 1.8% on Apr. 24 after the company reported Q1 2025 operating earnings of $0.84 per share, missing the consensus estimate and declining 4.5% year-over-year. Revenues also fell short of expectations at $3.9 billion, despite a 7.1% year-over-year increase. The earnings miss was driven by an 8.7% increase in operating expenses, including higher costs for operations and maintenance, depreciation, and interest.
In comparison, Xcel Energy stock has underperformed its rival WEC Energy Group, Inc. (WEC), as WEC stock has returned 35.4% over the past 52 weeks and a 13.1% gain YTD.
Due to the stock's outperformance relative to the sector over the past year, analysts are bullish with a consensus rating of "Strong Buy" from 16 analysts. As of writing, XEL is trading below the mean price target of $77.13.
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