Back to top

Analyst Blog

On Apr 12, 2013, the shares of Northeast Utilities (NU - Analyst Report) climbed to its 52-week high of $44.74 driven by its strong projects pipeline and diversified asset base. We expect the company’s long-term earnings growth to be 7.55%.

As announced in Feb 2013, Northeast Utilities intends to invest around $1.6 billion in 2013 to upgrade the electricity and natural gas infrastructure. Currently, the company is in the middle of several major projects including Greater Springfield Reliability Project, Interstate Reliability Project and Northern Pass Project. These initiatives will enable the company to increase the transmission capacity, which will subsequently help to meet the rise in customers’ demand.

In Apr 2012, Northeast Utilities completed its merger with NSTAR and enjoyed related benefits in fourth quarter 2012. Quarterly revenues surpassed the prior-year results due to strong performance by the transmission segment primarily backed by this merger. We believe this merger will aid the company to increase its scale of operations and serve a wider customer base in the future.

As of Dec 31, 2012, Northeast Utilities had $45.7 million in cash and $1.45 billion available under its revolving credit facilities. This financial position enables the company to pursue steady inorganic as well as organic growth strategies.

Northeast Utilities expects a steady performance in 2013. The company’s earnings guidance for full year 2013 is $2.40 to $2.60 per share. The Zacks Consensus Estimates for full year 2013 and 2014 is $2.55 and 2.71 per share, up 12.06% and 6.18% year over year, respectively.

In Feb 2013, the board of directors of Northeast Utilities increased its quarterly dividend by 7.1% to 36.75 cents per share. The company has been boosting its investors’ income by hiking the dividend payment consistently since 1966. The company’s practice of raising dividends from time to time will benefit the stock as it attracts investor attention.

Northeast Utilities currently has a Zacks Rank #2 (Buy). Besides Northeast Utilities, other stocks from the industry that are performing well include Brookfield Infrastructure Partners L.P. (BIP - Snapshot Report), Empresa Nacional de Electricidad S.A. (EOC - Snapshot Report) and Pike Electric Corporation (PIKE - Snapshot Report). All the three stocks carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.42 +4.74%
BITAUTO HOL… BITA 81.38 +4.70%
CHINA BIOLO… CBPO 47.65 +2.74%
GILEAD SCIE… GILD 104.95 +2.58%
SPIRIT AIRL… SAVE 72.75 +2.32%