Xcel Energy Stock (NASDAQ: XEL) Hit’s Multi Year High

Xcel Energy stock (NASDAQ: XEL) set a new 52 week and multi-year high, reaching a mark of $72.09 before closing just below at $71.87 on the day. As a key player in the utility sector, the firm's market capitalization now stands at an impressive $41.13 billion.

Having gained 13.23% on a year-to-date basis, XEL is now testing levels not seen since the end of 2022.

Adding to the stock's upward trajectory, Xcel Energy recently completed additional forward sale agreements with renowned financial institutions Barclays Bank PLC and Bank of America. These agreements account for the forward sale of 2,748,091 shares, extending beyond previous agreements that covered 18,320,610 shares. These strategic moves have contributed to the company's liquidity and investor appeal.

Financial performance indicators have been favourable for Xcel Energy, as the company reported a rise in ongoing earnings per share (EPS) from $1.23 to $1.25 in the third quarter of 2024. Additionally, Xcel Energy has reaffirmed its earnings guidance for the full year 2024, projecting an EPS of $3.50 to $3.60. These figures reflect the company's consistent financial health and its ability to meet or exceed performance expectations.

Looking ahead, Xcel Energy is optimistic about the future, introducing an earnings guidance for 2025 with an EPS forecast of $3.75 to $3.85. In line with its growth strategies, the company has announced a formidable five-year capital investment plan amounting to $45 billion. This significant investment focuses on expanding the clean energy sector and furthering customer electrification—fundamental components for long-term, sustainable growth.

Market analysts have responded to Xcel Energy's performance and prospects with considerable enthusiasm. Both Goldman Sachs and Jefferies have expressed their confidence, with the former raising the company's stock target to $78 and the latter upgrading the stock to a Buy rating. These recommendations underscore the bullish outlook for the company.

Income-focused investors have additional cause for interest in Xcel Energy, as it has maintained a streak of dividend payments for 53 consecutive years. The current dividend yield is a substantial 3.06%, highlighting its attractiveness as an income-generating asset.

Despite a modest drop in revenue growth of 0.49% in the most recent quarter, the company’s profitability remains commendable. It boasts an EBITDA of $5.51 billion over the last twelve months and has seen an EBITDA growth of 9.3%. Xcel Energy's recent financial achievements, strategic sales agreements, and ambitious investment towards clean energy and electrification pave the way for continued success. With investor sentiment high and a constructive outlook from market analysts, Xcel Energy is well-positioned to harness the opportunities of a vibrant energy sector.