It’s common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Unfortunately, these high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson. Loss making companies can act like a sponge for capital – so investors should be cautious that they’re not throwing good money after bad.
So if this idea of high risk and high reward doesn’t suit, you might be more interested in profitable, growing companies, like Xcel Energy (NASDAQ:XEL). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Xcel Energy with the means to add long-term value to shareholders.
Trump has pledged to “unleash” American oil and gas and these 15 US stocks have developments that are poised to benefit.
If you believe that markets are even vaguely efficient, then over the long term you’d expect a company’s share price to follow its earnings per share (EPS) outcomes. That means EPS growth is considered a real positive by most successful long-term investors. Xcel Energy managed to grow EPS by 5.2% per year, over three years. That might not be particularly high growth, but it does show that per-share earnings are moving steadily in the right direction.
It’s often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company’s growth. It was a year of stability for Xcel Energy as both revenue and EBIT margins remained have been flat over the past year. That’s not bad, but it doesn’t point to ongoing future growth, either.
The chart below shows how the company’s bottom and top lines have progressed over time. For finer detail, click on the image.
NasdaqGS:XEL Earnings and Revenue History August 25th 2025
See our latest analysis for Xcel Energy
While we live in the present moment, there’s little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Xcel Energy?
Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. Because often, the purchase of stock is a sign that the buyer views it as undervalued. Of course, we can never be sure what insiders are thinking, we can only judge their actions.
Xcel Energy top brass are certainly in sync, not having sold any shares, over the last year. But the real excitement comes from the US$150k that Independent Director Devin Stockfish spent buying shares (at an average price of about US$68.93). Strong buying like that could be a sign of opportunity.
The good news, alongside the insider buying, for Xcel Energy bulls is that insiders (collectively) have a meaningful investment in the stock. Indeed, they hold US$47m worth of its stock. This considerable investment should help drive long-term value in the business. Even though that’s only about 0.1% of the company, it’s enough money to indicate alignment between the leaders of the business and ordinary shareholders.
As previously touched on, Xcel Energy is a growing business, which is encouraging. On top of that, we’ve seen insiders buying shares even though they already own plenty. That makes the company a prime candidate for your watchlist – and arguably a research priority. It’s still necessary to consider the ever-present spectre of investment risk. We’ve identified 2 warning signs with Xcel Energy (at least 1 which doesn’t sit too well with us) , and understanding them should be part of your investment process.
Keen growth investors love to see insider activity. Thankfully, Xcel Energy isn’t the only one. You can see a a curated list of companies which have exhibited consistent growth accompanied by high insider ownership.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
