Growth Investors: Industry Analysts Just Upgraded Their Exelon Corporation (NASDAQ:EXC) Revenue Forecasts By -2.1%

Exelon Corporation (NASDAQ:EXC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Exelon will make substantially more sales than they'd previously expected.

Following the latest upgrade, the current consensus, from the nine analysts covering Exelon, is for revenues of US$31b in 2021, which would reflect a definite 9.9% reduction in Exelon's sales over the past 12 months. Before the latest update, the analysts were foreseeing US$31b of revenue in 2021. It looks like the analysts have become a bit less bullish on Exelon, given the modest decline in revenue estimates after the latest consensus updates.

See our latest analysis for Exelon

There was no particular change to the consensus price target of US$50.80, with Exelon's latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Exelon analyst has a price target of US$63.00 per share, while the most pessimistic values it at US$40.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Exelon's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 19% by the end of 2021. This indicates a significant reduction from annual growth of 2.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.1% per year. It's pretty clear that Exelon's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Exelon this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Exelon.

Analysts are clearly in love with Exelon at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 3 other concerns we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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