We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Xcel Energy's (XEL) CAPEX & Focus on Clean Energy Bode Well
Read MoreHide Full Article
Xcel Energy’s (XEL - Free Report) disciplined investments in enhancing its clean-energy generation capability and infrastructure-related projects will boost its performance. Also, an increase in its existing natural gas and electric customers acts as a tailwind for the utility.
The Zacks Consensus Estimate for 2020 earnings is pegged at $2.78 per share, indicating growth of 5.30% from the year-ago reported figure. Additionally, the company’s long-term (three-five years) earnings growth rate stands at 6.11%.
Tailwinds
Xcel Energy continues to invest in its utility assets like transmission, distribution, electric generation and renewable projects for providing its customers with reliable services and effectively meet rising electricity demand. The company aims to spend $22.6 billion in the next five years on the aforesaid initiatives. Notably, the utility expects long-term earnings growth in the 5-7% range. Also, new rates and expanding customer base are acting as catalysts.
The company is also focusing on transition to clean energy. In 2019, the utility's subsidiary NSP-Minnesota filed its Minnesota resource plan, which runs through 2034. Per this plan, Xcel Energy will achieve 80% carbon-emission reduction by 2030 and 100% carbon-free electricity by 2050.
Other electric utilities are also adopting measures to supply clean and reliable energy to their customers. Some of the companies, namely Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Alliant Energy (LNT - Free Report) are planning to provide absolute clean energy by 2050.
Notably, Xcel Energy’s liquidity level including Mankato Energy Center’s divestiture and debt issue totaled $3.5 billion. Such a solid cash position will be sufficient to meet its current debt obligations. Moreover, the company’s strong cash flow generation capacity will enable it to raise its dividend at regular intervals.
Headwinds
However, Xcel Energy’s natural gas transmission and distribution operations are exposed to several risks as in leaks and mechanical setbacks impacting its normal operations. Also, the company’s business activities are susceptible to cyber security hazards, which might induce a loss of valuable data. Further, it is subject to comprehensive environmental guidelines, which could flare up its operating costs.
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Bigstock
Xcel Energy's (XEL) CAPEX & Focus on Clean Energy Bode Well
Xcel Energy’s (XEL - Free Report) disciplined investments in enhancing its clean-energy generation capability and infrastructure-related projects will boost its performance. Also, an increase in its existing natural gas and electric customers acts as a tailwind for the utility.
The Zacks Consensus Estimate for 2020 earnings is pegged at $2.78 per share, indicating growth of 5.30% from the year-ago reported figure. Additionally, the company’s long-term (three-five years) earnings growth rate stands at 6.11%.
Tailwinds
Xcel Energy continues to invest in its utility assets like transmission, distribution, electric generation and renewable projects for providing its customers with reliable services and effectively meet rising electricity demand. The company aims to spend $22.6 billion in the next five years on the aforesaid initiatives. Notably, the utility expects long-term earnings growth in the 5-7% range. Also, new rates and expanding customer base are acting as catalysts.
The company is also focusing on transition to clean energy. In 2019, the utility's subsidiary NSP-Minnesota filed its Minnesota resource plan, which runs through 2034. Per this plan, Xcel Energy will achieve 80% carbon-emission reduction by 2030 and 100% carbon-free electricity by 2050.
Other electric utilities are also adopting measures to supply clean and reliable energy to their customers. Some of the companies, namely Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Alliant Energy (LNT - Free Report) are planning to provide absolute clean energy by 2050.
Notably, Xcel Energy’s liquidity level including Mankato Energy Center’s divestiture and debt issue totaled $3.5 billion. Such a solid cash position will be sufficient to meet its current debt obligations. Moreover, the company’s strong cash flow generation capacity will enable it to raise its dividend at regular intervals.
Headwinds
However, Xcel Energy’s natural gas transmission and distribution operations are exposed to several risks as in leaks and mechanical setbacks impacting its normal operations. Also, the company’s business activities are susceptible to cyber security hazards, which might induce a loss of valuable data. Further, it is subject to comprehensive environmental guidelines, which could flare up its operating costs.
Zacks Rank & Price Performance
In the past six months, shares of this currently Zacks Rank #3 (Hold) company have gained 2%, outperforming the industry’s rise of 1.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>