Our Calculations Show VPU Could Reach $211
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Should l Buy XEL?
Source: NASDAQ.COM
Vanguard Utilities ETF Analysis: The Vanguard Utilities ETF (VPU) has an implied analyst target price of $210.74 per unit, indicating a potential upside of 9.85% from its recent trading price of $191.85.
Notable Holdings with Upside: Key underlying holdings of VPU, such as Consolidated Water Co Ltd (CWCO), Evergy Inc (EVRG), and Xcel Energy Inc (XEL), show significant upside potential based on analyst target prices, with expected increases of 15.63%, 11.37%, and 10.50% respectively.
Analyst Target Justification: The article raises questions about whether analysts' target prices are justified or overly optimistic, suggesting that high targets could lead to future downgrades if they do not align with market realities.
Investor Research Importance: Investors are encouraged to conduct further research to assess the validity of analyst targets in light of recent developments in the companies and the industry.
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Analyst Views on XEL
Wall Street analysts forecast XEL stock price to rise
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 80.550
Low
81.00
Averages
88.08
High
95.00
Current: 80.550
Low
81.00
Averages
88.08
High
95.00
About XEL
Xcel Energy Inc. is an electric and natural gas delivery company. The Company provides a comprehensive portfolio of energy-related products and services to approximately 3.9 million electric customers and 2.2 million natural gas customers through four utility subsidiaries, NSP-Minnesota, NSP-Wisconsin, PSCo and SPS. The Company operates through two segments. Its regulated electric utility segment generates, purchases, transmits, distributes and sells electricity in Colorado, Michigan, Minnesota, New Mexico, North Dakota, South Dakota, Texas and Wisconsin. In addition, this segment includes sales for resale and provides wholesale transmission service to various entities in the United States. The regulated electric utility segment also includes wholesale commodity and trading operations. Its regulated natural gas utility segment purchases, transports, stores, distributes and sells natural gas primarily in portions of Colorado, Michigan, Minnesota, North Dakota and Wisconsin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sustained Profitability: Ongoing earnings per share reached $0.91, up 8.33% from $0.84 in 2025, demonstrating the company's success in recovering electric sales growth despite rising financing costs and increased depreciation expenses.
- Outlook Reaffirmation: Xcel Energy reaffirmed its ongoing earnings guidance for 2026 at $4.04 to $4.16 per share, indicating confidence in future profitability with projected retail electric and natural gas sales growth of approximately 3% and 1%, respectively.
- Strategic Partnership: The agreement with Google for a data center in the Upper Midwest enhances community development and investment, expected to yield approximately $1.1 billion in benefits for customers, showcasing the company's commitment to sustainability and resource conservation.
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- 2026 Earnings Guidance: The company projects ongoing earnings per share for 2026 to be in the range of $4.04 to $4.16, slightly below the consensus of $4.11, reflecting a cautious outlook on future profitability.
- Sales Forecast: Weather-normalized retail electric sales are expected to increase by approximately 3%, while natural gas sales are projected to rise by about 1%, indicating moderate growth under stable weather conditions.
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See More
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- Sustainable Dividend Yields: With the S&P 500's dividend yield at only 1.1%, Bank of America advises investors to seek stocks with above-market but not overstretched dividend yields to achieve better returns, particularly in the current interest rate environment.
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- Economic Data Impact: U.S. March existing home sales fell 3.6% month-over-month to a 9-month low of 3.98 million, below the expected 4.05 million, and this weak data could influence the Fed's monetary policy decisions, increasing market expectations for rate cuts.
- Oil Price Volatility: Following President Trump's announcement of a full naval blockade of the Strait of Hormuz, WTI crude prices rose over 2%, although still below early highs, which could exacerbate global oil and fuel shortages, impacting related industry stock performance.
- Upcoming Earnings Season: Q1 earnings for the S&P 500 are projected to climb 12% year-over-year, but excluding the tech sector, earnings growth is only expected to be around 3%, the weakest in two years, reflecting market caution regarding profit growth.
See More
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Focus on Utility Sector for Stability: The utility sector is highlighted as a potential area for investment due to its steady revenue streams and generous dividend yields, making it attractive during volatile market conditions.
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