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PNM Resources (PNM) Strong on Clean Energy Goals & CAPEX
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PNM Resources, Inc.’s (PNM - Free Report) planned infrastructure-related investments and efforts to provide reliable and affordable clean power will enhance its existing performance. Also, the company’s adequate liquidity will allow it to meet its debt obligations.
The company has a trailing four-quarter earnings surprise of 9.27%, on average. Its long-term (three-five years) earnings growth rate is pegged at 5.18%. In the past year, shares of this presently Zacks Rank #3 (Hold) company have gained 30.7%, outperforming the industry’s rise of 10.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One-Year Price Performance
Image Source: Zacks Investment Research
What’s Driving the Stock?
PNM Resources continues to invest substantially in its utility assets for providing reliable services to its customers. The company plans to invest $3.98 billion during the 2021-2025 forecast period, which will help it enhance its earnings.
In New Mexico, the utility 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. We note that the company will play an important role with its expanding transmission assets in the region.
Also, the utility is steadily taking measures to increase its renewable and battery storage capacity, thus moving toward clean energy. To this end, PNM Resources is focused on exiting coal-fired generation by 2024 and targets an emission-free portfolio by 2040 to bring cleaner energy sources to the production portfolio. The goal of the company is to become carbon neutral before 2045. Also, it plans to replace 114 MW of leased capacity at Palo Verde Nuclear Generating Station with solar and storage resources. Additionally, other utilities like Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy (XEL - Free Report) are making efforts to supply clean energy.
The company boasts sufficient liquidity to meet its near-term obligations and fund capital investments despite the ongoing economic crisis.
Woes
However, the risk involved in operating at nuclear plants apart from abiding by the climate change-related stringent environmental policies and regulations remains a headwind to the company.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
PNM Resources (PNM) Strong on Clean Energy Goals & CAPEX
PNM Resources, Inc.’s (PNM - Free Report) planned infrastructure-related investments and efforts to provide reliable and affordable clean power will enhance its existing performance. Also, the company’s adequate liquidity will allow it to meet its debt obligations.
The company has a trailing four-quarter earnings surprise of 9.27%, on average. Its long-term (three-five years) earnings growth rate is pegged at 5.18%. In the past year, shares of this presently Zacks Rank #3 (Hold) company have gained 30.7%, outperforming the industry’s rise of 10.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
One-Year Price Performance
What’s Driving the Stock?
PNM Resources continues to invest substantially in its utility assets for providing reliable services to its customers. The company plans to invest $3.98 billion during the 2021-2025 forecast period, which will help it enhance its earnings.
In New Mexico, the utility 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. We note that the company will play an important role with its expanding transmission assets in the region.
Also, the utility is steadily taking measures to increase its renewable and battery storage capacity, thus moving toward clean energy. To this end, PNM Resources is focused on exiting coal-fired generation by 2024 and targets an emission-free portfolio by 2040 to bring cleaner energy sources to the production portfolio. The goal of the company is to become carbon neutral before 2045. Also, it plans to replace 114 MW of leased capacity at Palo Verde Nuclear Generating Station with solar and storage resources. Additionally, other utilities like Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy (XEL - Free Report) are making efforts to supply clean energy.
The company boasts sufficient liquidity to meet its near-term obligations and fund capital investments despite the ongoing economic crisis.
Woes
However, the risk involved in operating at nuclear plants apart from abiding by the climate change-related stringent environmental policies and regulations remains a headwind to the company.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>