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Is Exelon a Good Utilities Stock to Own?

Published 12/13/2021, 07:49 AM
Updated 12/13/2021, 08:31 AM
© Reuters.  Is Exelon a Good Utilities Stock to Own?

Leading utility solutions operator Exelon (EXC) has made significant advancements in all facets of its energy business as the nation’s key competitive energy provider. However, given that two of EXC’s power plants incurred significant losses last year as the nuclear industry continues to struggle to compete with cheaper forms of renewable power, will it be able to maintain its market standing? Let’s find out.Chicago-based nuclear electric power generation company Exelon Corporation (NASDAQ:EXC) is a leading energy provider with the largest number of electricity and natural gas customers in the United States. The passage of a clean energy bill in Illinois in September to bring the state to 100% renewable energy by 2050 has helped preserve the Fortune 100 energy company’s nuclear fleet. The nuclear energy provider’s CEO celebrated the legislation in the company’s third-quarter financial report, calling it “a critical milestone.”

EXC’s stock has gained 14.6% in price over the past six months. However, it has declined 1.8% over the past month.

While the company remains on track to finalize the separation of its competitive generation and utility businesses in the first quarter of 2022 to better serve its customers, its continuing competitive disadvantage as nuclear power plants struggle to compete on price against cheaper existing sources of energy could foster bearish sentiment toward the stock.

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