Latest news with #Exelon
Yahoo
3 hours ago
- Business
- Yahoo
With A Return On Equity Of 9.8%, Has Exelon Corporation's (NASDAQ:EXC) Management Done Well?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Exelon Corporation (NASDAQ:EXC), by way of a worked example. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Exelon is: 9.8% = US$2.7b ÷ US$28b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.10 in profit. View our latest analysis for Exelon 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. The image below shows that Exelon has an ROE that is roughly in line with the Electric Utilities industry average (9.2%). So while the ROE is not exceptional, at least its acceptable. Although the ROE is similar to the industry, we should still perform further checks to see if the company's ROE is being boosted by high debt levels. If a company takes on too much debt, it is at higher risk of defaulting on interest payments. Our risks dashboardshould have the 2 risks we have identified for Exelon. Companies usually need to invest money to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. It's worth noting the high use of debt by Exelon, leading to its debt to equity ratio of 1.75. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Investors should think carefully about how a company might perform if it was unable to borrow so easily, because credit markets do change over time. Return on equity is useful for comparing the quality of different businesses. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Business Wire
a day ago
- Business
- Business Wire
Exelon to Announce Second Quarter Results on July 31
CHICAGO--(BUSINESS WIRE)--Exelon (Nasdaq: EXC) will hold its second quarter 2025 earnings conference call at 9:00 a.m. CT / 10:00 a.m. ET on Thursday, July 31, 2025. The conference call will be led by Exelon President and CEO, Calvin Butler, and Exelon Executive Vice President and CFO, Jeanne Jones. To listen to or view the upcoming earnings presentation, please access the live listen-only webcast here. The audio webcast link will also be available on the Investor Relations page and will be archived and available for replay. About Exelon Exelon (Nasdaq: EXC) is a Fortune 200 company and one of the nation's largest utility companies, serving more than 10.7 million customers through six fully regulated transmission and distribution utilities — Atlantic City Electric, BGE, ComEd, Delmarva Power, PECO, and Pepco. Exelon's 20,000 employees dedicate their time and expertise to supporting our communities through reliable, affordable and efficient energy delivery, workforce development, equity, economic development and volunteerism. Follow @Exelon on X and LinkedIn.
Associated Press
a day ago
- Business
- Associated Press
Exelon to Announce Second Quarter Results on July 31
CHICAGO--(BUSINESS WIRE)--Jun 27, 2025-- Exelon (Nasdaq: EXC) will hold its second quarter 2025 earnings conference call at 9:00 a.m. CT / 10:00 a.m. ET on Thursday, July 31, 2025. The conference call will be led by Exelon President and CEO, Calvin Butler, and Exelon Executive Vice President and CFO, Jeanne Jones. To listen to or view the upcoming earnings presentation, please access the live listen-only webcast here. The audio webcast link will also be available on the Investor Relations page and will be archived and available for replay. About Exelon Exelon View source version on CONTACT: James Gherardi 312-394-7417 Media Hotline [email protected] KEYWORD: UNITED STATES NORTH AMERICA ILLINOIS MARYLAND PENNSYLVANIA INDUSTRY KEYWORD: UTILITIES ENERGY SOURCE: Exelon Copyright Business Wire 2025. PUB: 06/27/2025 11:10 AM/DISC: 06/27/2025 11:10 AM
Yahoo
3 days ago
- Business
- Yahoo
Exelon Corp (EXC) Draws Bullish Options Bets After Unusual Volume Spike
Amid geopolitical flashpoints and economic uncertainties, investors may consider the relative safety of public utility Exelon Corp (EXC). So far this year, Exelon has outperformed the utilities sector, thanks to a strong return of nearly 15% since the January opener. Over the past 52 weeks, EXC stock has gained more than 22%. At the same time, since late April, the security has been struggling for momentum, losing about 8%. Still, on a fundamental level, EXC stock commands significant relevance. Throughout much of the post-COVID-recovery period, a prevailing theme has been everyday consumers struggling to make ends meet. However, the cynical reality is that utilities represent a frontline service — you cut that off and you're not getting far in this modern economy. $2M Insider Buy on Robinhood Makes History: Should You Buy HOOD Stock, Too? Long-Term Bull Put Spread Provides Opportunities for Walmart Bulls Exelon Corp (EXC) Draws Bullish Options Bets After Unusual Volume Spike Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! As such, EXC stock is likely to attract steady demand, irrespective of outside circumstances. It's also possible that, based on the latest technical rumblings, the negative acceleration in EXC is fading. If so, a sentiment turnaround could be just over the horizon. Following Monday's closing bell, EXC stock represented one of the highlights in Barchart's screener for unusual stock options volume. Specifically, total options volume reached 4,296 contracts, representing a 165.68% lift over the trailing one-month average. Further, call volume hit 3,720 contracts versus put volume of only 576, thus yielding a put/call ratio of 0.15. On paper, the low ratio indicates more traders engaging call options than puts, implying bullish sentiment. A deeper dive into options flow — which focuses exclusively on big block transactions likely placed by institutional investors — revealed that net trade sentiment stood at $36,300 above parity, thus favoring the optimists. At least for EXC stock, the put/call ratio could be interpreted at face value. Subsequently, the smart money may be bullish on Exelon, which could then attract retail buyers. However, the quantitative argument could be even more compelling. At first glance, both the narrative and the unusual options activity point toward potential upside momentum for EXC stock. Still, the central challenge here is that for traders (especially options traders), these talking points lack specificity. Essentially, options expire so market participants can't just rely on a thesis forecasting magnitude; the strategy must also take into account time. In other words, options traders live in a world of probabilities, which inherently requires statistical analysis. Seemingly, this practice appears easy: just take the occurrences of the desired outcome divided by the total number of events in the underlying dataset. But this approach only calculates the odds of an outcome materializing across a dataset's entire distribution, which is merely a derivative probability. For traders, the most useful probability is the conditional variety — the odds of an outcome materializing across a specific data subset. Conditional probabilities are akin to calculating a baseball player's situational batting average, such as when there are runners in scoring position (RISP). It's a much more relevant insight than last season's batting average, which is a derivative probability. Now, the problem with applying conditional analyses in finance is the non-stationarity issue; basically, measurement metrics such as share price or valuation ratios change temporally and contextually. To impose stationarity on the dataset, an analyst can convert historical price data into market breadth — sequences of accumulative and distributive sessions. Market breadth, being a representation of demand, is a binary construct and therefore lends itself to categorization and quantification. These attributes later enable probabilistic projections. In the case of EXC stock, the last two months' price action can be characterized as a 3-7-D sequence: three up weeks, seven down weeks, with a net negative trajectory across the 10-week period. Admittedly, compressing price action into a binary code eliminates the magnitude dynamism of EXC. Nevertheless, the benefit is that past demand profiles can be categorized as behavioral states and their transitions from one state to another can be recorded. Based on past empirical data, in 67.57% of cases when the 3-7-D flashes, the following week's price action results in upside, with a median return of 2.21%. Should the bulls maintain control of the market, EXC stock could push above the $44 level over the next three to four weeks and possibly toward $45. Based on the market intelligence above, arguably the most rational multi-leg options strategy is the 42/44 bull call spread expiring July 18. This transaction involves buying the $42 call and simultaneously selling the $44 call, for a net debit paid of $130. Should EXC stock rise through the short strike price ($44) at expiration, the maximum reward is $70, a payout of nearly 54%. Those who want a much greater reward for higher probabilistic risk may consider the 44/45 bull spread also expiring July 18. In this case, the net debit is relatively cheap at $40. If EXC stock rises through the short strike price at expiration, the max reward is $60, a payout of 150%. In either case, the driving force is the implied shift in sentiment regime of the 3-7-D sequence. As a baseline, the chance that a long position in EXC stock will be profitable over any given week is 52.37%. However, the aforementioned pattern — which historically acts as a reversal signal — dramatically boosts the odds in favor of the bullish speculator. As a result, there's an incentive to swing the bat — especially if you're already prone to taking risks. On the date of publication, Josh Enomoto 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. 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Yahoo
5 days ago
- Business
- Yahoo
Exelon (EXC) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. Exelon (EXC) is headquartered in Chicago, and is in the Utilities sector. The stock has seen a price change of 13.18% since the start of the year. The energy company is currently shelling out a dividend of $0.4 per share, with a dividend yield of 3.76%. This compares to the Utility - Electric Power industry's yield of 3.27% and the S&P 500's yield of 1.62%. Taking a look at the company's dividend growth, its current annualized dividend of $1.60 is up 5.3% from last year. Exelon has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 0.01%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Exelon's payout ratio is 58%, which means it paid out 58% of its trailing 12-month EPS as dividend. Earnings growth looks solid for EXC for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.70 per share, representing a year-over-year earnings growth rate of 8%. Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that EXC is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
