Back to top
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
MDU Resources Group, Inc. (MDU) - $25 value - yours FREE >>
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.
MDU Resources Group, Inc. (MDU) - $25 value - yours FREE >>
Image: Bigstock
Is MDU Resources (MDU) Worth Adding to Your Portfolio?
On Jun 17, Zacks Investment Research upgraded MDU Resources Group Inc. (MDU - Free Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
MDU Resources has been witnessing rising earnings estimates on the back of strong first-quarter 2016 results. This electric and natural gas utility reported earnings of 17 cents, resulting in a positive earnings surprise of 30.77%, in the first quarter of 2016. The company reported a loss of $1.57 per share in the year ago quarter. The long-term earnings growth is pegged at 7.0%.
The company’s consistent investments in operation and infrastructure have been a tailwind. MDU Resources is currently benefiting from its past investments and has further plans to invest over $1.5 billion in the next five years. This is expected to drive compounded earnings growth of 7% annually over that period.
The company has in the meantime expanded its customer base to 1.5 million. It further aims to grow its customers base by 1.5% to 2% annually.
MDU Resources’ construction business is also sustaining the momentum gathered in 2015. The company exited first-quarter 2016 with a combined construction business (materials $0.83 billion and services $0.53 billion) backlog of nearly $1.36 billion, up 38% year over year.
The current debt–to-capital ratio of the company is 42.2%, lower than the industry average of 45.81%. In addition, MDU Resources’ current ratio of 1.39 makes it an all season utility having the ability to survive with or without a rate hike. The current dividend yield of the company is 3.28%, much better than the utility sector average of 2.97%
The Zacks Consensus Estimate for 2016 moved up 4.7% to $1.12 per share as 50% of the estimates were revised higher over the last 60 days. For 2017, 50% estimates were revised higher over the same time frame, lifting the Zacks Consensus Estimate by 6.4% to $1.33 per share.
MDU RESOURCES Price and Consensus
MDU RESOURCES Price and Consensus | MDU RESOURCES Quote
Other Stocks on the Horizon
Apart from MDU Resources Group, Clean Energy Fuels Corp. (CLNE - Free Report) , Spark Energy, Inc. and Avangrid, Inc. (AGR - Free Report) sport a Zacks Rank#1 (Strong Buy).
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 >>