Should You Invest in Exelon?

PHOTO CREDIT: Exelon

OVERVIEW

Exelon Incorporation is a company based in the United States. The company generates electricity through nuclear, fossil fuel, wind, biomass and hydroelectric plants. The company then sells this electricity to companies, households, and governments across the United States. The company was founded in 1999.

Why You Should?

1. Exelon is a great reopening play in an investor’s portfolio. The company saw a drop in demand for electricity as restaurants and other venues shut down due to the pandemic. However, once this pandemic comes to an end, these venues will reopen and the company will see a rise in demand for electricity.
2. Exelon is an extremely safe investment option due to the essential nature of the products and services that it offers to its customers. Regardless of the economic times, the company will continue to see stable sales of electricity as customers can not live without this commodity. This will help the company remain stable during tough economic times.
3. Exelon will continue to see higher sales of electricity due to the booming housing market. This is because these individuals in these new housing areas will need more electricity, something that will benefit the company. This will also benefit investors in the company as they will see better operating results.
4. Exelon’s production of electricity makes it a good player for the future of the energy industry. As consumers shift away from fossil fuels and other non-renewable energy forms to electricity, Exelon will see a rising demand for its electricity to charge vehicles and other things. This rise in demand in the future will benefit the company and its investors.
5. The Biden administration wants to spend billions of dollars in order to improve the country’s energy grid and also shift the country towards clean energy like electricity. This will benefit the company as the government is incentivizing consumers to use electricity instead of fossil fuels. This will benefit the company and its investors.

Why You Should Not?

1. The company faces tough competition in the electricity and energy industry. Some of these competitors include Eddison, Entergy, Sempra, FirstEnergy, and many others. This competition might hurt the company and its investors.
2. The utility business is extremely regulated. This does offer some safety for companies like Exelon but also limits the growth that these companies can have as well. High regulation in any industry is not a particularly good thing, and this might hurt companies like Exelon in the future. This regulation might also hurt investors.

MY OPINION

I think that Exelon is a great long-term investment due to its position as a good reopening play, positive impacts from a Biden administration, its position as a safe investment option, a booming housing market, as well as its position as the future of the energy industry. However, tough competition and negative impacts from regulation might hurt the company and its investors in the future.