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Investments in Infrastructure & Clean Energy Aid PNM Resources
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PNM Resources, Inc.’s (PNM - Free Report) investments in strengthening its existing infrastructure and enhancing clean energy capacity to provide reliable and affordable power will boost its performance. Also, the company’s adequate liquidity will allow it to meet its debt obligations amid the ongoing pandemic.
The company has a trailing four-quarter earnings surprise of 6.19%, on average. Its long-term (three-five years) earnings growth rate is pegged at 4.87%.
What’s Driving the Stock?
PNM Resources continues to invest substantially in its utility assets for providing reliable services to its customers. It plans to spend $3.3 billion from 2020 to 2023. These investments will lead to 8.9% rate base growth. The company also expects a 5-6% earnings growth rate in the same time frame.
In New Mexico, it received approvals from both the Federal Energy Regulatory Commission and the New Mexico Public Regulation Commission to acquire the Western Spirit Transmission Line in 2021. At present, in New Mexico, 1,227 MW wind projects are under construction while those with 1,328 MW are under advanced development. We note that the company will play an important role with its expanding transmission assets in the region.
Management announced the company’s Wired for the Future program to enhance its current investments and support grid resilience. Of the $450 million investment plan, 55% will be spent on strengthening its transmission lines while 45% will be utilized to fortify its distribution lines.
Also, the utility has been undertaking measures to increase its renewable and battery storage capacity, thereby moving toward clean energy. Furthermore, the company has adequate liquidity to meet its near-term obligations and fund capital investments despite the ongoing economic crisis.
Woes
However, the risk behind operating in nuclear plants apart from abiding by the climate change-related stringent environmental policies and regulations remain headwinds to the company.
Price Performance
In the past three months, shares of the company have gained 13.1%, outperforming the industry’s rise of 2.9%.
Stocks to Consider
A few better-ranked electric utilities are Portland General Electric Company (POR - Free Report) , Korea Electric Power Corporation (KEP - Free Report) and Huaneng Power International, Inc. , all carrying a Zacks Rank#2 (Buy) at present.
Portland General Electric Company delivered an earnings surprise of 7.74%, on average, in the last four quarters. The company has a long-term earnings growth rate of 5.14%.
Korea Electric Power has a long-term earnings growth rate of 5%. The Zacks Consensus Estimate for 2020 earnings has been steady in the past 60 days.
Huaneng Power International has a long-term earnings growth rate of 13.14%. The Zacks Consensus Estimate for current-year earnings has been revised 24.4% upward in the past 60 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Investments in Infrastructure & Clean Energy Aid PNM Resources
PNM Resources, Inc.’s (PNM - Free Report) investments in strengthening its existing infrastructure and enhancing clean energy capacity to provide reliable and affordable power will boost its performance. Also, the company’s adequate liquidity will allow it to meet its debt obligations amid the ongoing pandemic.
We recently issued an updated research report on this presently Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company has a trailing four-quarter earnings surprise of 6.19%, on average. Its long-term (three-five years) earnings growth rate is pegged at 4.87%.
What’s Driving the Stock?
PNM Resources continues to invest substantially in its utility assets for providing reliable services to its customers. It plans to spend $3.3 billion from 2020 to 2023. These investments will lead to 8.9% rate base growth. The company also expects a 5-6% earnings growth rate in the same time frame.
In New Mexico, it received approvals from both the Federal Energy Regulatory Commission and the New Mexico Public Regulation Commission to acquire the Western Spirit Transmission Line in 2021. At present, in New Mexico, 1,227 MW wind projects are under construction while those with 1,328 MW are under advanced development. We note that the company will play an important role with its expanding transmission assets in the region.
Management announced the company’s Wired for the Future program to enhance its current investments and support grid resilience. Of the $450 million investment plan, 55% will be spent on strengthening its transmission lines while 45% will be utilized to fortify its distribution lines.
Also, the utility has been undertaking measures to increase its renewable and battery storage capacity, thereby moving toward clean energy. Furthermore, the company has adequate liquidity to meet its near-term obligations and fund capital investments despite the ongoing economic crisis.
Woes
However, the risk behind operating in nuclear plants apart from abiding by the climate change-related stringent environmental policies and regulations remain headwinds to the company.
Price Performance
In the past three months, shares of the company have gained 13.1%, outperforming the industry’s rise of 2.9%.
Stocks to Consider
A few better-ranked electric utilities are Portland General Electric Company (POR - Free Report) , Korea Electric Power Corporation (KEP - Free Report) and Huaneng Power International, Inc. , all carrying a Zacks Rank#2 (Buy) at present.
Portland General Electric Company delivered an earnings surprise of 7.74%, on average, in the last four quarters. The company has a long-term earnings growth rate of 5.14%.
Korea Electric Power has a long-term earnings growth rate of 5%. The Zacks Consensus Estimate for 2020 earnings has been steady in the past 60 days.
Huaneng Power International has a long-term earnings growth rate of 13.14%. The Zacks Consensus Estimate for current-year earnings has been revised 24.4% upward in the past 60 days.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>