MGE Energy Inc.’s (MGEE - Free Report) strong fundamentals and a solid financial position along with upward estimate revisions make it a good investment choice.
Zacks Rank & Price Performance
MGE Energy currently carries a Zacks Rank #2 (Buy). In the past month, the stock has gained 0.9% against the industry’s decline of 1.9%.
The Zacks Consensus Estimate for 2020 and 2021 earnings is pegged at $2.52 and $2.68 per share, respectively. While the 2020 bottom line suggests an increase of 0.40%, the same for 2021 indicates a 6.35% rise from the respective year-earlier reported numbers.
Surprise History & Long-Term Earnings Growth
MGE Energy delivered an earnings surprise of 10.42% for second-quarter 2020.
Its long-term (three to five years) earnings growth rate is currently projected at 4.38%.
MGE Energy’s total debt to total capital is 36.17%, comparing favorably with the industry’s 59.58%. Its times interest earned (TIE) also ratio improved to 5.72 at the end of the second quarter from 5.60 at the end of the first quarter. This strong TIE ratio reflects the company’s ability to meet its debt obligations in the near future.
Return on Equity (ROE)
The company’s ROE for the trailing 12 months is 10.44%, comparing favorably with the industry’s 8.09%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than its peers.
Other Stocks to Consider
A few other top-ranked utilities are American States Water Company (AWR - Free Report) , Alliant Energy Corporation (LNT - Free Report) and Energias de Portugal (EDPFY - Free Report) , all stocks carrying the same Zacks Rank as MGE Energy at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American States Water Company has a long-term earnings growth rate of 4.90%. The company delivered an earnings surprise of 0.15%, on average, in the last four quarters.
Alliant Energy has a long-term earnings growth rate of 5.54%. The company delivered an earnings surprise of 30.91%, on average, in the trailing four quarters.
Energias de Portugal has a long-term earnings growth rate of 5.66%. The Zacks Consensus Estimate for 2020 earnings has moved 3.5% north in the past 60 days.
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