Among Utilities, a Surprising Powerhouse
Only five utilities in the U.S. have enterprise values of $40 billion or more, and they are called the "40-plus" club. They are Southern (SO), Dominion Resources (D), NextEra Energy (NEE), Duke Energy (DUK) and Exelon (EXC). Since last August, shares of the group have climbed 14.2%, and four out of the five have done well. The fifth, Exelon, has been a disappointment and is dragging the overall performance of the group. It's time to look under the hood to see what's going on.
Within the 40-plus club, Exelon is unique. It's the only member that owns electric and gas utilities in restructured states. It also recently completed a challenging acquisition of another utility, Constellation Energy Group. Year-over-year analysis is difficult, as is understanding how all the subsidiaries work together. These concerns and uncertainties about costs and organizational effectiveness may be the reason Exelon's stock has taken a pounding. But uncertainties may be fading....538 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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