5-Star Stocks Poised to Pop: Exelon

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Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity giant Exelon (NYSE: EXC) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Exelon's business and see what CAPS investors are saying about the stock right now.

Exelon facts

Headquarters (Founded)	Chicago (1887)
Market Cap	$31.25 billion
Industry	Electric utilities
Trailing-12-Month Revenue	$17.7 billion
Management	Chairman/CEO John Rowe (since 2004) CFO Matthew Hilzinger (since 2005)
Return on Capital (Average, Past 3 Years)	13.0%
Cash/Debt	$2.37 billion / $13 billion
Dividend Yield	4.5%
Competitors	Southern Company (NYSE: SO) Dominion Resources (NYSE: D) PPL (NYSE: PPL)
CAPS Members Bullish on EXC Also Bullish on	Johnson & Johnson (NYSE: JNJ) Apple (Nasdaq: AAPL)
CAPS Members Bearish on EXC Also Bearish on	Monsanto (NYSE: MON)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 250 All-Star members who have rated Exelon believe the stock will outperform the S&P 500 going forward. These bulls include mkyorai and mrindependent, both of whom are ranked in the top 10% of our community.

Two months ago, mkyorai touched on Exelon's excellent fundamentals:

- Consistently cash flow positive
- Quick ratio is approaching 1 for a company in a fairly capital intensive area of operations
- Decent Dividend

In an earlier pitch, mrindependent expands on the stock as an electric income opportunity:

The idea is that utilities are inflation protected and highly regulated, but current dividend yields are high. In the case of Exelon, the dividend yield is a whopping 4.5%. Other valuation measures are also promising. … Exelon should grow with the economy or maybe a little bit faster. Return on equity has averaged 20% over the last 5 years and sales growth has averaged approximately 7%. The debt equity ratio is reasonable and the company appears financially solvent. Based on all of the above, a p/bv ratio of 4 seems like a reasonable target.

What do you think about Exelon, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!