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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
