12 Best Infrastructure Stocks to Buy According to Hedge Funds

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9. Exelon Corp. (NASDAQ:EXC)

Number of Hedge Fund Holders: 34

Exelon Corp. (NASDAQ:EXC) is a utility services holding company that focuses on energy distribution and transmission across the US and Canada. It purchases and sells electricity and natural gas, and manages the transmission and distribution of these energy sources to many customers. These include residential, commercial, and industrial customers.

In FQ3 2024, the company’s earnings per share reached $0.71, which was a $0.04 increase year-over-year, driven by a $0.03 boost from higher distribution and transmission rates. This underscores the financial impact of its infrastructure investments. The company now reaffirms its 5-7% annual earnings growth target through 2027 for this reason.

The company is investing heavily in infrastructure. Delmarva Power seeks a $35.6 million revenue increase for gas upgrades. PECO wants $354 million more for electric and $78 million for gas infrastructure. ComEd’s proposed plan includes a $637 million revenue and $3.9 billion rate base increase for grid modernization. The $9.7 billion Vienna-Nelson transmission line project highlights this commitment and improves reliability, which enables coal plant retirement (saving customers around $100 million), and supports local businesses.

These investments are crucial for grid resilience, reliability, and accommodating the demand from electrification and data centers. Exelon Corp. (NASDAQ:EXC) has completed its 2024 equity issuances and plans to raise an additional $1.6 billion through 2027 to support its $34.5 billion capital plan.

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