XEL Should I Buy
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Xcel Energy Inc (XEL) is not a strong buy at the moment for a beginner investor with a long-term horizon. While the company has shown solid financial performance and positive analyst sentiment, the stock appears overbought based on technical indicators, and there is cautious sentiment from hedge funds and Congress trading data. Additionally, the stock's short-term trend suggests potential downside risks in the near future. It is better to wait for a more favorable entry point.
The technical indicators show a bullish trend with MACD above 0 and expanding positively, and moving averages aligned bullishly (SMA_5 > SMA_20 > SMA_200). However, the RSI is at 89.852, indicating the stock is overbought. Key resistance levels are at R1: 80.467 and R2: 82.234, with support at S1: 74.744 and S2: 72.977.
Strong Q4 financial performance with revenue up 14.13%, net income up 22.20%, and EPS up 17.28% YoY.
Positive analyst upgrades, including UBS upgrading to Buy with a price target of $89 and BMO Capital raising the target to $
Increasing data center load growth trends and favorable risk/reward at current levels.
Hedge funds are selling the stock, with a 1252.85% increase in selling activity over the last quarter.
Congress trading data shows a sale transaction worth $0.8M, indicating cautious sentiment.
Overbought technical conditions (RSI at 89.
and a 60% chance of a -7.38% decline in the next week based on candlestick pattern analysis.
In Q4 2025, Xcel Energy reported strong growth metrics: Revenue increased by 14.13% YoY to $3.561B, net income rose by 22.20% YoY to $567M, and EPS grew by 17.28% YoY to $0.95. Gross margin also improved by 12.57% to 43.44%.
Analyst sentiment is generally positive, with multiple upgrades and price target increases. UBS upgraded the stock to Buy with a target of $89, citing favorable risk/reward and growth trends. BMO Capital raised its target to $90, highlighting upside capital opportunities and data center backlog growth. However, some analysts have slightly lowered their price targets recently, reflecting cautious optimism.
