8 Most Profitable Utility Stocks To Invest In

5. Exelon (NASDAQ:EXC)  

Number of Hedge Fund Holders: 37  

TTM Net Income: $2.42 Billion  

5-Year Net Income CAGR: 1.30%

Exelon (NASDAQ:EXC) is a leading energy provider based in Chicago, operating a diverse portfolio that includes nuclear, solar, wind, and natural gas generation facilities. The company is also engaged in energy distribution and transmission through various subsidiaries, including Commonwealth Edison Company (PECO), Baltimore Gas and Electric Company (BGE), Potomac Electric Power Company (Pepco), and Atlantic City Electric Company (ACE).

In Q2, Exelon’s (NASDAQ:EXC) revenue grew by 11.2%, reaching $5.36 billion compared to the same period last year. The company also received positive regulatory news, with the Maryland Public Service Commission (MDPSC) approving a $45 million increase in Pepco’s electric distribution rates for the 12-month period ending March 31, 2025, with a return on equity of 9.5%.

Exelon’s (NASDAQ:EXC) Q2 earnings exceeded expectations, with a 17.5% earnings beat. Earnings per share rose to 47 cents, up from 41 cents in the prior year. On a GAAP basis, earnings increased to 45 cents per share, compared to 34 cents in the same quarter last year.

Exelon’s (NASDAQ:EXC) P/E ratio of 16.04 reflects an 8% discount compared to the sector median of 17.44. Exelon’s earnings are projected to grow by nearly 3% this year. Industry analysts maintain a bullish outlook on the stock, with a consensus Buy rating and a target price of $42.37, implying a potential 7.59% upside from current levels.

The company’s diversified holdings, strong cash flow, and consistent dividend growth make it a compelling buy in the utility sector. As of the second quarter, 37 hedge funds hold a combined $465.12 million stake in the company.