Xcel Energy Stock: Is XEL Outperforming the Utility Sector?

With a market cap of $47.2 billion, Minneapolis, Minnesota-based Xcel Energy Inc. (XEL) is an electric and natural gas delivery company. The company operates through Regulated Electric Utility and Regulated Natural Gas Utility segments, generating and distributing electricity from diverse sources such as wind, nuclear, hydroelectric, biomass, solar, coal, and natural gas.

Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Xcel Energy fits this criterion perfectly. It serves customers across several states, including Colorado, Minnesota, Texas, and others, while also investing in energy infrastructure, natural gas pipelines, and community solar projects.

XEL stock has dipped 10.7% from its 52-week high of $84.23. Shares of Xcel Energy have fallen 3.5% over the past three months, a milder decline than the State Street Utilities Select Sector SPDR ETF's (XLU) 3.8% decrease during the same period.

The utility company's shares have gained 2.2% on a YTD basis, outpacing XLU's marginal decline. Longer term, XEL stock has returned 3.6% over the past 52 weeks, compared to XLU's marginal dip over the same time frame.

Yet, the stock has been trading below its 200-day moving average since May.

Xcel Energy has outperformed over the past year as rising electricity demand from AI, data centers, industrial activity, and electrification has strengthened expectations for sustained rate-base and earnings growth. Its expanding clean-energy investments, nuclear life extensions, major customer contracts, and growing capital plan have further improved its growth prospects while maintaining the defensive appeal of a regulated utility.

In comparison, XEL stock has outperformed its rival WEC Energy Group, Inc. (WEC). WEC stock has declined marginally on a YTD basis and 4% over the past 52 weeks.

Due to XEL stock's outperformance over the past year, analysts are strongly optimistic with a consensus rating of "Strong Buy" from 18 analysts. The mean price target of $92 is a premium of 21.9% to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com