Jim Cramer’s Exclusive List: 10 Stocks You Should Keep an Eye On

5. Exelon Corporation (NASDAQ:EXC)

Number of Hedge Fund Investors: 37

When a viewer asked Jim Cramer about his investment in energy companies like Exelon Corporation (NASDAQ:EXC) and whether the growing demand for energy in the U.S. would continue, Cramer reassured him. While he acknowledged that Exelon Corporation (NASDAQ:EXC)’s 3.25% yield isn’t particularly high, Cramer highlighted the company’s strong nuclear operations. He noted that with yields clustering between 3.25% and 3.5%, Exelon Corporation (NASDAQ:EXC) appears stable. Cramer described Exelon Corporation (NASDAQ:EXC) as a “baby growth story,” indicating that it’s a safe investment with modest growth potential.

“No, no, you’re not drinking the Kool-Aid. It only yields 3.25%, which really isn’t that much. But they do have a big nuke operation, which is really fabulous. They’re clustering around 3.25 to 3.5%, so I think you’re fine. It’s a baby growth story—meaning the stock is safe.”

Exelon Corporation (NASDAQ:EXC) is an appealing investment due to its solid financial performance, strategic investments, and positive growth prospects. In the fourth quarter of 2023, Exelon Corporation (NASDAQ:EXC) reported adjusted earnings per share (EPS) of $0.60, exceeding analyst expectations. For 2024, Exelon Corporation (NASDAQ:EXC) expects EPS to be between $2.40 and $2.50, showing confidence in its operational efficiency and ongoing investments.

Exelon Corporation (NASDAQ:EXC) plans to invest $35 billion over the next four years to support a 7.5% growth in its rate base and achieve a 5-7% annual EPS growth from 2023 to 2027. This investment will help advance energy transformation while keeping costs affordable for customers. Exelon Corporation (NASDAQ:EXC)’s strong performance in 2023, particularly in utilities like ComEd, highlights its commitment to reliable service and customer satisfaction.

Additionally, Exelon Corporation (NASDAQ:EXC) offers an attractive dividend yield of 4.15% and has consistently paid dividends for 53 years, which is appealing to income-focused investors. Despite a significant debt load, Exelon Corporation (NASDAQ:EXC)’s strategic initiatives and favorable earnings outlook make it a strong long-term investment in the utility sector.