Xcel Energy Inc. (NASDAQ:XEL) has been downgraded by Morgan Stanley on September 21 which now rates the stock as Equal-Weight compared with Overweight rating suggested in the past. Analysts at BofA/Merrill, shed their positive views on June 20 by lowering it fromBuy to Neutral. The stock won favor of Morgan Stanley analysts who expressed their confidence in it using an upgrade from Equal-Weight to Overweight on February 13. BofA/Merrill, released new analyst coverage on October 24, calling the stock is Buy.
XEL stock dropped -0.86% in recent trade and currently has a stock-market value of $28.78B. The shares finished at $56.16, after trading as low as $55.94 earlier in the session. It hit an intraday high Thursday at $56.5. Trading activity significantly weakened as the volume at ready counter decreased to 3,243,662 shares versus 3,614,560 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,566,586 shares. The stock is now 33.75% above against its bear-market low of $41.99 on June 11, 2018. It has retreated -1.07% since it’s 52-week high of $56.76 reached in March. Now the market price is up 29.07% on the year and up 13.98% YTD.
Wall Street’s most bullish Xcel Energy Inc. (NASDAQ:XEL) analysts are predicting the share price to blow past $58 per share during the next 12 months. The current median share price forecast by them is $55, suggesting that the stock could increase -2.07% in that time frame. The average price target of $54.42 calls for a nearly -3.1% increase in the stock price.
Xcel Energy Inc. (XEL)’s 50 day simple moving average (SMA 50) price is $52.47 and its 200-day simple moving average (SMA 200) price is $49.07. The company’s stock currently has a total float of 512.42M shares. Its weekly volatility is hovering around 0.98% and felt 1.13% volatility in price over a month. On the upside, the share price will test short term resistance at around $56.46. On a downside, the stock is likely to find some support, which begins at $55.9. The failure to get near-term support could push it to $55.64.
When looking at valuations, Xcel Energy Inc. (XEL) has a pricey P/E of 31.6x as compared to industry average of 15.27x. Moreover, it trades for 20.24 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.36x price/book and 2.49x price/sales. Compared to others, Xcel Energy Inc. is in a different league with regards to profitability, having net margins of 10.9%. To put some perspective around this, the industry’s average net margin is 22.98%. XEL’s ROE is 10.6%, which is also considerably worse than the industry’s ROE of 10.78%. It’s also not liquid in the near term, with a current ratio of 0.7. The stock has a debt/capital of 1.41.
Shares of XEL have gained 11.3% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Xcel Energy Inc. (NASDAQ:XEL) has topped consensus earnings estimates in 7 quarters (58%), missed earnings in 4 quarters (33%), whereas at 1 occasion EPS met analyst expectations. XEL last reported earnings that receded expectations. The company raked in $0.42 per share, -12.5% change on the same period last year. That was worse than consensus for $0.42. Revenue for the recent quarter stood at $2.88 billion, up 3% on last year and above the $2.85 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.01 billion to $3.26 billion, which should be compared with $2.99 billion generated last year. EPS is seen in a range of $0.58 to $0.64, against the $0.51 reported a year ago.