XEL Should I Buy
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Xcel Energy Inc (XEL) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong financial performance, positive growth catalysts, and favorable analyst sentiment. Despite some hedge fund selling and a cautious stance from Congress members, the stock's fundamentals and dividend growth make it a solid choice for long-term investment.
The technical indicators are bullish. The MACD histogram is positive at 0.525, suggesting upward momentum. The RSI is at 75.767, in the neutral zone, indicating no overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level of 83.713, with key support at 78.93.
Xcel Energy's partnership with Google to add 1.9GW of clean energy capacity in Minnesota, including wind, solar, and storage solutions.
Google's new data center in Pine Island, Minnesota, supporting AI workloads, which could increase energy demand.
The company has raised its quarterly dividend for the 23rd consecutive year, reflecting confidence in its long-term growth strategy.
Hedge funds are selling the stock, with a 1252.85% increase in selling activity over the last quarter.
Congress members have shown a cautious attitude, with one recent sale transaction and no purchase transactions.
Xcel Energy delivered strong financial results in Q4 2025. 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% YoY to 43.44%.
Analyst sentiment is generally positive. UBS upgraded the stock to Buy with a price target of $89, citing favorable risk/reward and strong earnings growth. BMO Capital raised its price target to $90, highlighting upside capital opportunities and data center growth. Morgan Stanley raised its target to $91, although it maintains an Equal Weight rating. Analysts overall see growth potential driven by data center pipelines and renewable energy projects.
