PNM Resources, Inc.’s PNM will benefit from its long-term investment plans, focus on renewables as well as strategies to provide reliable and affordable clean power.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) utility a promising pick for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for 2019 earnings per share is pegged at $2.08 on $1.47-billion revenues. The bottom and the top line indicate an increase of 4% and 2.01%, respectively.
The consensus mark for 2020 earnings is pegged at $2.20 per share on revenues of $1.51 billion. The bottom line suggests a 5.93% increase and the top line calls for a 2.97% rise on a year-over-year basis.
The company’s long-term (three to five years) earnings growth is pegged at 5.50%.
In the past 12 months, PNM Resources’ shares have rallied 28.9% compared with the industry’s rise of 12.8%.
The company continues to invest substantially in its utility assets to provide reliable services to its customers. It plans to invest $3.6 billion from 2019 to 2023. Moreover, PNM Resources expects rate-based compound annual growth of 9.3% during the 2018-2023 period.
PNM Resources has expertise in fulfilling environmental regulations. The company focuses on developing cost-effective power generation units to provide reliable and affordable power, while transitioning to a 100% emissions-free generating portfolio by 2040.
Earnings Surprise History & Dividend Yield
The company’s average four-quarter positive earnings surprise is 9.93%.
Currently, the company has a dividend yield of 2.29% compared with the Zacks S&P 500 composite’s 1.9%.
Other Stocks to Consider
Some other top-ranked stocks in the Utility sector are American Electric Power Company AEP, NRG Energy NRG and DTE Energy Company DTE. NRG Energy sports Zacks Rank #1, while American Electric and DTE Energy carry a Zacks Rank of 2.
American Electric Power, NRG Energy and DTE Energy delivered average positive earnings surprise of 2.96%, 11.64% and 4.32%, respectively, in the last four quarters.
The long-term earnings growth rate for American Electric Power, NRG Energy and DTE Energy is pegged at 5.66%, 36.77% and 6%, respectively.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
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
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
DTE Energy Company (DTE) : Free Stock Analysis Report
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
PNM Resources, Inc. (Holding Co.) (PNM) : Free Stock Analysis Report
To read this article on Zacks.com click here.