Reasons to Add Portland General Electric to Your Portfolio
Portland General Electric Company POR is benefiting from focus on delivering safe, clean and reliable energy to customers. More than 50% of its retail revenues come from residential customers. Nearly 81% of electricity supplied to customers comes from clean sources like natural gas, hydro, wind and solar power. The company aims to exit coal-fired generation by 2030.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick this summer. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimates Revision
The Zacks Consensus Estimate for the company’s earnings for 2020 has been unchanged at $2.38 per share in the past 60 days, while the same for 2021 moved up 1.2% to $2.53 in the same time frame.
Surprise History & Long-Term Earnings Growth
Portland General Electric’s trailing three-quarter positive earnings surprise is 1.5%, on average.
Its long-term (three to five years) earnings growth is currently pegged at 5.3%.
Capital Investment Plan
For the 2020-2024 period, the company expects to make investments of approximately $2,810 million. The investment will be aimed at updating and replacing aging generation, transmission as well as distribution equipment. Portland General Electric’s objective is to build a smarter and resilient grid, which will assist it in providing reliable services to customers.
Debt/Capital & Dividend Yield
The company’s current debt to capital is pegged at 49.74% compared with the industry’s 50.42%.
Currently, it has a dividend yield of 3.74% compared with the industry’s 3.6%.
Price Movement
In the past five years, the stock has gained 20.5% compared with the industry’s growth of 10.5%.
Other Stocks to Consider
Other top-ranked stocks in the same space include NextEra Energy Inc. NEE, PNM Resources Inc. PNM and CMS Energy Corporation CMS, each carrying a Zacks Rank of 2.
NextEra Energy, PNM Resources and CMS Energy delivered average positive earnings surprise of 2.4%, 1.2% and 0.8%, respectively, in the last four quarters.
Long-term earnings growth for NextEra Energy, PNM Resources and CMS Energy is currently projected at 7.9%, 6.2% and 6.9%, respectively.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CMS Energy Corporation (CMS) : Free Stock Analysis Report
Portland General Electric Company (POR) : Free Stock Analysis Report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
PNM Resources, Inc. Holding Co. (PNM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
