XEL Should I Buy
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Based on the investor's long-term strategy and available capital, Xcel Energy Inc (XEL) is a good buy. The company's strong financial performance, positive analyst sentiment, and growth potential outweigh the current technical indicators and hedge fund selling trends. The stock's recent underperformance appears to be overly discounted, presenting a favorable entry point for long-term investors.
The MACD is below 0 and negatively contracting (-0.625), indicating a bearish trend. RSI is at 33.921, which is neutral but close to oversold territory. Moving averages are converging, suggesting indecision in the market. Key support is at 76.865, and resistance is at 79.34. The stock is trading near support levels, which could act as a floor.
Strong Q4 financial performance with revenue up 14.13% YoY, net income up 22.20% YoY, and EPS up 17.28% YoY.
Analysts maintain a positive outlook with multiple Buy ratings and price targets ranging from $89 to $95, suggesting upside potential.
Growth in data center load and top-quartile EPS growth of 9%+ are key drivers.
Hedge funds are selling, with a 1252.85% increase in selling activity last quarter.
Technical indicators suggest a bearish trend in the short term.
No recent news or congress trading data to provide additional support.
In Q4 2025, Xcel Energy reported strong growth: Revenue increased by 14.13% YoY to $3.561 billion, net income rose by 22.20% YoY to $567 million, EPS grew by 17.28% YoY to $0.95, and gross margin improved by 12.57% to 43.44%.
Analysts are generally positive on XEL. UBS maintains a Buy rating with a price target of $89, citing strong EPS growth and undervaluation. Morgan Stanley raised its price target to $93, highlighting growth opportunities and optimism in the sector. Other firms like BMO Capital and Mizuho also maintain Outperform ratings with price targets in the $86-$90 range.
