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An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s. Upgrade to MarketBeat renewable energy stocks All Access to add more stocks to your watchlist. The utility rose along with its peers, but its focus on reducing its carbon footprint is making it increasingly attractive to investors.

• The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries.
• This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
• By comparing a company’s ROE with its industry average, we can get a quick measure of how good it is.
• The limitation of this approach is that some companies are quite different from others, even within the same industry classification.
• Shares of Xcel Energy Inc. slumped 1.4% in midday trading Friday, and was the biggest decliner among the SPDR Utilities Select Sector ETF’s components.
• We are reaffirming our $59 per share fair value estimate for Xcel Energy after two key regulatory developments this week.

Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. You can see the 2 risks we have identified for Xcel Energy by visiting our risks dashboard for free on our platform here. By comparing a company’s ROE with its industry average, we can get a quick measure of how good it is.

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You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Xcel Energy’s stock is owned by a variety of retail and institutional investors.

The dividend is paid every three months and the next ex-dividend date is Sep 14, 2023. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements. Xcel Energy manages utilities serving 3.7 million electric customers and 2.1 million natural gas customers in eight states. It is one of the largest renewable energy providers in the U.S. with half of its electricity sales coming from carbon-free energy. The drugmaker’s profits are a model of consistent future growth.

How big is Xcel Energy Inc?

Profit is on pace to rise nearly 20% this year, analysts say. And after that, Wall Street is looking for 32% growth in 2024, 35% in 2025 and 23% in 2026. Eli Lilly, one of the companies pushing for neurological breakthroughs, is another example of an S&P 500 stock that just doesn’t want to fall. In the past five years, it gained an average of nearly 38% annually while not having a down year even once. It’s really lighting it up in August, as the rest of the S&P 500 sputters, gaining more than 22%. With that said, a high ROE doesn’t always indicate high profitability.

• It is one of the largest renewable energy providers in the U.S. with half of its electricity sales coming from carbon-free energy.
• So you might want to check this FREE visualization of analyst forecasts for the company.
• These returns cover a period from January 1, 1988 through July 31, 2023.
• Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk.

According to 14 analysts, the average rating for XEL stock is “Buy.” The 12-month stock price forecast is $67.31, which is an increase of 21.08% from the latest price. Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated. The technique has proven to be very useful for finding positive surprises. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

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This suggests a possible upside of 20.8% from the stock’s current price. View analysts price targets for XEL or view top-rated stocks among Wall Street analysts. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature.

Xcel Energy Inc. said Wednesday that it raised its quarterly dividend by 6.4%, to 45.75 cents a share from 43.00 cents. The electric and natural-gas company’s new dividend is payable April 20 to shareholders of record on … These consistently rising stocks posted an average gain in the past five years of 23.8%. And it’s nearly double the S&P 500’s total average annual return of 12.1% during that time, says IFA.com. Keep in mind even the S&P 500 dropped two out of the past five years. Xcel Energy has an annual dividend of $2.08 per share, with a forward yield of 3.74%.

Xcel Energy’s stock leads utilities sector in losses as about 15,000 Colorado customers remain without power

That will make the ROE look better than if no debt was used. 11 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for Xcel Energy in the last twelve months. There are currently 8 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should “hold” XEL shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in XEL, but not buy additional shares or sell existing shares.

If two companies have the same ROE, then I would generally prefer the one with less debt. Xcel Energy clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.51. Its ROE is quite low, even with the use of significant debt; that’s not a good result, in our opinion. Debt does bring extra risk, so it’s only really worthwhile when a company generates some decent returns from it.

Xcel Energy: Regulatory Developments Support Earnings Growth Outlook

“Markets will likely have more choppiness ahead because of these complications.” Less than 2% of the stocks in the S&P 500 pull it off, showing just how rare such stocks that go up so consistently are. MINNEAPOLIS–(BUSINESS WIRE)–Xcel Energy announced today a proposal to advance the retirement of coal operations at Tolk Generating Station in Texas to 2028, more than four years earlier than planned… BOSTON–(BUSINESS WIRE)–Form https://investmentsanalysis.info/ Energy, Inc., an American technology company developing and commercializing a new class of cost-effective, multi-day energy storage systems, announced today that it has… MINNEAPOLIS–(BUSINESS WIRE)–For the tenth year in a row, Xcel Energy has been honored as one of the World’s Most Admired Companies by Fortune magazine. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time.

Analysts think the company’s profit will rise 63% in 2023 and another 7.5% in 2024. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business.