Deere & Company (DE), Exelon Corporation (EXC): Is It Time to Buy Stock in This Company?

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There is some precedence here as Exelon Corporation (NYSE:EXC) snapped up Deere & Company (NYSE:DE)‘s wind business a couple of years ago. In the deal, Exelon picked up 735 megawatts of wind generation with another 1,400 megawatts of generating capacity in development. The company paid about $900 million in a deal that made sense for both companies as Deere & Company (NYSE:DE) wanted to exit the power business while Exelon wanted to jump-start its wind operations.

Until we get some more clarity on exactly how Exelon Corporation (NYSE:EXC) intends to grow earnings, it’s not the best utility stock to buy in my opinion. Part of the reason why Exelon cut its dividend was to preserve its investment grade balance sheet in order to pursue growth projects. Right now that is nothing more than an idea. That’s why I prefer the visible growth offered by both Dominion and NextEra Energy, Inc. (NYSE:NEE).

The article Is It Time to Buy Stock in Exelon? originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo is short Apr 2013 $35 puts on Exelon. The Motley Fool recommends Dominion Resources (NYSE:D) and Exelon.

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