Why Exelon Is Our Stock of the Week
This video is part of our "Motley Fool Conversations" series, in which advisor Charly Travers and analyst Jason Moser discuss topics across the investing world.
The United States is seeing a resurgence in nuclear power with Southern Co. and SCANA recently receiving approvals to build new nuclear reactors. These are the first nuclear reactors to be approved since the Three Mile Island incident in 1979. Other utilities, like Progress Energy, which is merging with Duke Energy, are in the middle of the Nuclear Regulatory Commission's approval process. Two other companies offer clearer near-term plays in the space. GE will benefit first because its technology is used in the plant construction while the utilities won't see a direct benefit for many years until these plants come on line. Exelon, which provides 20% of the country's nuclear power, stands to be one of the long-term beneficiaries. We like Exelon shares here: They are trading at a 52-week low and at 10 times earnings and with a 5.4% dividend yield.
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At the time this article was published Charly Travers and Jason Moser have no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above.Motley Fool newsletter services recommendExelon and Southern Co. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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