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Reasons to Add Avista (AVA) Stock to Your Portfolio Now
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Avista (AVA - Free Report) , with rising earnings estimates and strategic investments, offers a great investment opportunity in the utility sector.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock a solid investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for AVA’s fourth-quarter 2023 earnings per share (EPS) has increased 1.79% to $1.14 in the past 90 days. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $2.43, indicating a year-over-year rise of 5.43%.
The company’s (three to five years) earnings growth is pegged at 5.93%. It delivered an average earnings surprise of 33.71% in the last four quarters.
Dividend History
Avista has been increasing shareholders’ value through dividend payments. In November 2023, AVA announced a quarterly dividend of 46 cents per share and an annual dividend of $1.84 per share. Avista’s current dividend yield is 5.07%, better than the Zacks S&P 500 composite’s yield of 1.12%.
Systematic Capital Expenditure
Avista is making capital investments to enhance service and system reliability for its customers and replace aging infrastructure. It expects capital expenditures to be $500 million in 2024, $525 million in 2025 and $550 million in 2026. These systematic capital expenditures will also lead to 5% rate base growth of the company, boosting its earnings.
Solvency Ratio & Liquidity
Avista’s times interest earned ratio (TIE) at the end of the third quarter of 2023 was 2.1. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
The liquidity of the company as of Sep 30, 2023 was $316 million, enough to meet its short-term debt obligations. Avista also does not have any debt maturities till 2028, which will allow the company to focus more on operations.
Price Performance
In the past month, AVA shares have risen 4.5% compared to its industry’s average return of 2.9%.
CenterPoint Energy’s long-term earnings growth rate is pegged at 7.51%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $1.62, implying a year-over-year increase of 8%.
NiSource Energy’s long-term earnings growth rate is pegged at 7.15%. The Zacks Consensus Estimate for the company’s 2024 EPS stands at $1.71, calling for a year-over-year increase of 6.88%.
Con Edison’s long-term earnings growth rate is pegged at 2%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $5.30, indicating a year-over-year rise of 5.80%.
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Reasons to Add Avista (AVA) Stock to Your Portfolio Now
Avista (AVA - Free Report) , with rising earnings estimates and strategic investments, offers a great investment opportunity in the utility sector.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock a solid investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for AVA’s fourth-quarter 2023 earnings per share (EPS) has increased 1.79% to $1.14 in the past 90 days. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $2.43, indicating a year-over-year rise of 5.43%.
The company’s (three to five years) earnings growth is pegged at 5.93%. It delivered an average earnings surprise of 33.71% in the last four quarters.
Dividend History
Avista has been increasing shareholders’ value through dividend payments. In November 2023, AVA announced a quarterly dividend of 46 cents per share and an annual dividend of $1.84 per share. Avista’s current dividend yield is 5.07%, better than the Zacks S&P 500 composite’s yield of 1.12%.
Systematic Capital Expenditure
Avista is making capital investments to enhance service and system reliability for its customers and replace aging infrastructure. It expects capital expenditures to be $500 million in 2024, $525 million in 2025 and $550 million in 2026. These systematic capital expenditures will also lead to 5% rate base growth of the company, boosting its earnings.
Solvency Ratio & Liquidity
Avista’s times interest earned ratio (TIE) at the end of the third quarter of 2023 was 2.1. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
The liquidity of the company as of Sep 30, 2023 was $316 million, enough to meet its short-term debt obligations. Avista also does not have any debt maturities till 2028, which will allow the company to focus more on operations.
Price Performance
In the past month, AVA shares have risen 4.5% compared to its industry’s average return of 2.9%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks related to the same industry are CenterPoint Energy (CNP - Free Report) , NiSource (NI - Free Report) and Con Edison (ED - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CenterPoint Energy’s long-term earnings growth rate is pegged at 7.51%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $1.62, implying a year-over-year increase of 8%.
NiSource Energy’s long-term earnings growth rate is pegged at 7.15%. The Zacks Consensus Estimate for the company’s 2024 EPS stands at $1.71, calling for a year-over-year increase of 6.88%.
Con Edison’s long-term earnings growth rate is pegged at 2%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $5.30, indicating a year-over-year rise of 5.80%.