10 Most Undervalued Utility Stocks to Invest in Now

5. Exelon Corporation (NASDAQ:EXC)

Forward P/E as on March 4: ~16.5x

Number of Hedge Fund Holders: 47

Exelon Corporation (NASDAQ:EXC) is a utility services holding company, which is engaged in the energy distribution and transmission businesses. Ross Fowler, an analyst from Bank of America Securities, maintained a “Hold” rating on the company’s stock, with the price target of $41.00. The rating is backed by several factors that demonstrate the company’s performance and outlook. Exelon Corporation (NASDAQ:EXC)’s Q4 and full-year 2024 earnings surpassed the consensus expectations and reached the top end of the guidance range. Notably, the company reported GAAP net income of $0.64 per share and adjusted (non-GAAP) operating earnings of $0.64 per share for Q4 2024, resulting in full-year GAAP net income of $2.45 per share and adjusted (non-GAAP) operating earnings of $2.50 per share.

Exelon Corporation (NASDAQ:EXC) plans to invest $38 billion over the next 4 years, reflecting an increase of 10% as compared to the prior plan to help customer needs and grid reliability, leading to an expected rate base growth of 7.4% and operating EPS compounded annual growth of 5%-7% from 2024 to 2028. These are the positive indicators of its future growth potential, says Fowler. Elsewhere, Scotiabank upped Exelon Corporation (NASDAQ:EXC)’s price objective to $44 from $42, keeping a ”Sector Perform” rating.