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4 Reasons to Add Portland General Electric to Your Portfolio
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Estimates for Portland General Electric Company (POR - Free Report) have been revised upward over the past 30 days, reflecting analyst’s confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has been moved 2.8% and 2.6% north to $2.24 and $2.41 per share, respectively.
Portland General Electric, headquartered in Portland, OR, is a vertically integrated electric utility that serves residential, commercial and industrial customers in Oregon. The company generates power from a diverse mix of resources including hydropower, coal and natural gas.
Let’s focus on the factors that make the stock a wealthy pick for garnering greater returns.
Price Appreciation: Shares of the company have gained 10.9% over the past three months, outperforming the industry’s growth of 2%.
VGM Score: The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
Capex Trend & Forecast: Over the past five years, the company incurred a total of $3,359 million as capital expenditure for the upgrade, replacement and expansion of transmission, distribution and generation infrastructure as well as for technology enhancements and expenditures related to hydro licensing and construction.
The company estimates to incur approximately $2,440 million of capex over the next five years, of which, $655 million is expected to be incurred in 2018.
Dividend Growth: The company continues to deliver returns to its shareholders in the form of regular dividend payouts. Its above average dividend growth history dates back to 12 years since it went public in 2006.
Also, in first-quarter 2018, the company hiked the quarterly dividend rate by 6.6% to 36.25 cents per share compared with last quarter’s dividend of 34 cents. Also, the company has a target of 5-7% sustainable annual dividend raises with an annual dividend payout ratio of 50-70%.
NRG Yield sports a Zacks Rank #1. It delivered an average four-quarter beat of 167.92%. The company’s bottom line is expected to grow 25.1% over the long-term period of 3-5 years.
Algonquin Power & Utilities has a Zacks Rank of 1. The company pulled off an average four-quarter positive surprise of 28.56%. The company’s earnings are expected to gain 8% over the long-term period of 3-5 years.
Ameren carries a Zacks Rank of 2. The company came up with an average four-quarter earnings surprise of 7.69%. The company’s bottom line is expected to rise 6.5% over the long-term period of 3-5 years.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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4 Reasons to Add Portland General Electric to Your Portfolio
Estimates for Portland General Electric Company (POR - Free Report) have been revised upward over the past 30 days, reflecting analyst’s confidence in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings has been moved 2.8% and 2.6% north to $2.24 and $2.41 per share, respectively.
Portland General Electric, headquartered in Portland, OR, is a vertically integrated electric utility that serves residential, commercial and industrial customers in Oregon. The company generates power from a diverse mix of resources including hydropower, coal and natural gas.
Let’s focus on the factors that make the stock a wealthy pick for garnering greater returns.
Price Appreciation: Shares of the company have gained 10.9% over the past three months, outperforming the industry’s growth of 2%.
VGM Score: The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank offer the best investment bets.
Capex Trend & Forecast: Over the past five years, the company incurred a total of $3,359 million as capital expenditure for the upgrade, replacement and expansion of transmission, distribution and generation infrastructure as well as for technology enhancements and expenditures related to hydro licensing and construction.
The company estimates to incur approximately $2,440 million of capex over the next five years, of which, $655 million is expected to be incurred in 2018.
Dividend Growth: The company continues to deliver returns to its shareholders in the form of regular dividend payouts. Its above average dividend growth history dates back to 12 years since it went public in 2006.
Also, in first-quarter 2018, the company hiked the quarterly dividend rate by 6.6% to 36.25 cents per share compared with last quarter’s dividend of 34 cents. Also, the company has a target of 5-7% sustainable annual dividend raises with an annual dividend payout ratio of 50-70%.
Zacks Rank & Other Stocks to Consider
Portland General Electric carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the Zack Utility Sector are NRG Yield, Inc. , Algonquin Power & Utilities Corp. (AQN - Free Report) and Ameren Corporation (AEE - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NRG Yield sports a Zacks Rank #1. It delivered an average four-quarter beat of 167.92%. The company’s bottom line is expected to grow 25.1% over the long-term period of 3-5 years.
Algonquin Power & Utilities has a Zacks Rank of 1. The company pulled off an average four-quarter positive surprise of 28.56%. The company’s earnings are expected to gain 8% over the long-term period of 3-5 years.
Ameren carries a Zacks Rank of 2. The company came up with an average four-quarter earnings surprise of 7.69%. The company’s bottom line is expected to rise 6.5% over the long-term period of 3-5 years.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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