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Why Exelon Will Outperform in 2013

By Brian D. Pacampara, CFA - Dec 31, 2012 at 2:42PM

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Market-trouncing returns could be written in these stars.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electricity giant Exelon (EXC -0.33%) has earned a coveted five-star ranking.

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

Exelon facts

Headquarters (Founded)

Chicago (1887)

Market Cap

$24.8 billion

Industry

Electric utilities

Trailing-12-Month Revenue

$21.4 billion

Management

CEO Christopher Crane (since 2008)
CFO Jonathan Thayer (since 2012)

Return on Equity (Average, Past 3 Years)

14.8%

Cash/Debt

$1.7 billion / $19.7 billion

Dividend Yield

7.1%

Competitors

Ameren (AEE 1.14%)
Dynegy
(NYSE: DYN)
PPL
(PPL 0.55%)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,972 members who have rated Exelon believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, TMFTypeoh, succinctly summed up the Exelon bull case for our community:

Too cheap. Yes, dividend may be cut, which might hurt short term, but this dividend payer will be around for a long, long time. Nuclear isn't too sexy right now, which may be another long term tailwind. The [dividend] will chew my cost basis lower over the years, which is a good CAPS strategy.

If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Exelon may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Exelon Corporation Stock Quote
Exelon Corporation
EXC
$43.74 (-0.33%) $0.14
Ameren Corporation Stock Quote
Ameren Corporation
AEE
$89.98 (1.14%) $1.01
PPL Corporation Stock Quote
PPL Corporation
PPL
$27.51 (0.55%) $0.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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