NorthWestern Corp. (NWE - Free Report) , an energy company, is focused on providing reliable and affordable energy to its customers. The company has solid growth opportunities with its diverse fleet of electricity and natural gas, regular dividend payments and financial stability.
Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for NWE’s 2023 earnings per share (EPS) is pegged at $3.44, indicating a year-over-year improvement of 8.2%.
The consensus estimate for 2023 sales is pegged at $1.57 billion, indicating a year-over-year improvement of 6.1%.
The company’s long-term (three to five year) earnings growth is pegged at 5.2%.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, NorthWestern ROE is 6.53%, which is higher than the industry’s average of 5.41%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Debt Position
The company’s total debt to capital was 49.73% as of Jun 30, 2023, which is better than the industry’s average of 61.13%.
The time to interest earned ratio at the end of second-quarter 2023 was 2.7, which being greater than one indicates that NorthWestern is in a good position to meet its interest obligations.
Dividend History
NorthWestern continues to increase shareholders’ value through dividend payments. Currently, the company’s quarterly dividend is 64 cents per share, resulting in an annualized dividend of $2.56 per share. NWE’s current dividend yield is 5.23%, which is better than the utility electric power industry’s 3.98%.
Price Performance
In the past year, shares of NWE have lost 1.1% compared with the broader industry’s 11.6% decline.
Other Stocks to Consider
A few other top-ranked stocks from the same industry are TransAlta Corp. (TAC - Free Report) and Vistra Corp. (VST - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Pinnacle West Capital Corp. (PNW - Free Report) , holding a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TAC’s 2023 EPS indicates a year-over-year increase of 1,912.5%. The company delivered an average earnings surprise of 107.14% in the last four quarters.
The consensus estimate for VST’s 2023 EPS indicates a year-over-year improvement of 220.4%. The same for sales indicates a year-over-year increase of 47.8%.
PNW’s long-term earnings growth rate is 6.5%. The consensus estimate for the company’s 2023 sales indicates year-over-year growth of 5.2%.
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NorthWestern Corp. (NWE - Free Report) , an energy company, is focused on providing reliable and affordable energy to its customers. The company has solid growth opportunities with its diverse fleet of electricity and natural gas, regular dividend payments and financial stability.
Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for NWE’s 2023 earnings per share (EPS) is pegged at $3.44, indicating a year-over-year improvement of 8.2%.
The consensus estimate for 2023 sales is pegged at $1.57 billion, indicating a year-over-year improvement of 6.1%.
The company’s long-term (three to five year) earnings growth is pegged at 5.2%.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, NorthWestern ROE is 6.53%, which is higher than the industry’s average of 5.41%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Debt Position
The company’s total debt to capital was 49.73% as of Jun 30, 2023, which is better than the industry’s average of 61.13%.
The time to interest earned ratio at the end of second-quarter 2023 was 2.7, which being greater than one indicates that NorthWestern is in a good position to meet its interest obligations.
Dividend History
NorthWestern continues to increase shareholders’ value through dividend payments. Currently, the company’s quarterly dividend is 64 cents per share, resulting in an annualized dividend of $2.56 per share. NWE’s current dividend yield is 5.23%, which is better than the utility electric power industry’s 3.98%.
Price Performance
In the past year, shares of NWE have lost 1.1% compared with the broader industry’s 11.6% decline.
Other Stocks to Consider
A few other top-ranked stocks from the same industry are TransAlta Corp. (TAC - Free Report) and Vistra Corp. (VST - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Pinnacle West Capital Corp. (PNW - Free Report) , holding a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TAC’s 2023 EPS indicates a year-over-year increase of 1,912.5%. The company delivered an average earnings surprise of 107.14% in the last four quarters.
The consensus estimate for VST’s 2023 EPS indicates a year-over-year improvement of 220.4%. The same for sales indicates a year-over-year increase of 47.8%.
PNW’s long-term earnings growth rate is 6.5%. The consensus estimate for the company’s 2023 sales indicates year-over-year growth of 5.2%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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