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4 Reasons to Add Northwest Natural (NWN) to Your Portfolio
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Northwest Natural Holding Company (NWN - Free Report) — through its subsidiaries — provides natural gas, water and wastewater services to customers in the United States. NWN purchases natural gas from multiple sources, which protect it against regional supply disruptions and help it take advantage of price differentials.
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $2.58 and $2.65, respectively. The 2021 and 2022 estimates indicate year-over-year growth of 12.2% and 2.7%, respectively.
The Zacks Consensus Estimate for 2021 and 2022 revenues is pegged at $828.4 million and $857.1 million, indicating year-over-year growth of 7.1% and 3.5%, respectively.
Regular Investments & Steady Customer Growth
Northwest Natural makes consistent investments to upgrade and maintain the existing infrastructure as well as expand operations. NWN anticipates investing in the range of $280-$300 million in 2021 and $1-$1.2 billion during the 2021-2025 time period in natural gas operations. These investments will increase the reliability of gas services and enable it to serve an increasing customer base effectively. NWN expects this systematic investment to drive 4-6% rate base growth over the long term.
Northwest Natural has been registering a consistent increase in gas utility customer volumes over the past 14 years. At the end of 2020, NWN’s customer volumes increased 1.5% year over year and it expects to register gas customer growth of more than 1.4% annually over the long term.
Dividend Yield
Currently, Northwest Natural has a dividend yield of 3.99%, higher than the industry’s 2.88%. NWN has increased its annual dividend rate for 65 consecutive years.
Long-Term EPS Growth & Surprise History
Northwest Natural’s trailing four-quarter earnings surprise is 24.7%, on average. NWN’s long-term (three to five years) earnings growth is currently projected at 5.03%.
Price Performance
Shares of Northwest Natural have gained 12.1% in the past month compared with the industry’s 7.4% rally.
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Other Stocks to Consider
Other top-ranked stocks in the same sector include Duke Energy Corporation (DUK - Free Report) , IDACORP Inc. (IDA - Free Report) and Alliant Energy (LNT - Free Report) , each currently holding a Zacks Rank #2.
The long-term (three to five years) earnings growth of Duke Energy, IDACORP, and Alliant Energy is projected at 5.3%, 4.4%, and 6%, respectively.
The Zacks Consensus Estimate for 2021 earnings for Duke Energy, IDACORP, and Alliant Energy has moved up 0.2%, 0.4%, and 1.9%, respectively, in the past 90 days.
Duke Energy, IDACORP, and Alliant Energy’s shares have returned 6%, 14.3%, and 8.9%, respectively, in the past six months.
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4 Reasons to Add Northwest Natural (NWN) to Your Portfolio
Northwest Natural Holding Company (NWN - Free Report) — through its subsidiaries — provides natural gas, water and wastewater services to customers in the United States. NWN purchases natural gas from multiple sources, which protect it against regional supply disruptions and help it take advantage of price differentials.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Projections
The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $2.58 and $2.65, respectively. The 2021 and 2022 estimates indicate year-over-year growth of 12.2% and 2.7%, respectively.
The Zacks Consensus Estimate for 2021 and 2022 revenues is pegged at $828.4 million and $857.1 million, indicating year-over-year growth of 7.1% and 3.5%, respectively.
Regular Investments & Steady Customer Growth
Northwest Natural makes consistent investments to upgrade and maintain the existing infrastructure as well as expand operations. NWN anticipates investing in the range of $280-$300 million in 2021 and $1-$1.2 billion during the 2021-2025 time period in natural gas operations. These investments will increase the reliability of gas services and enable it to serve an increasing customer base effectively. NWN expects this systematic investment to drive 4-6% rate base growth over the long term.
Northwest Natural has been registering a consistent increase in gas utility customer volumes over the past 14 years. At the end of 2020, NWN’s customer volumes increased 1.5% year over year and it expects to register gas customer growth of more than 1.4% annually over the long term.
Dividend Yield
Currently, Northwest Natural has a dividend yield of 3.99%, higher than the industry’s 2.88%. NWN has increased its annual dividend rate for 65 consecutive years.
Long-Term EPS Growth & Surprise History
Northwest Natural’s trailing four-quarter earnings surprise is 24.7%, on average. NWN’s long-term (three to five years) earnings growth is currently projected at 5.03%.
Price Performance
Shares of Northwest Natural have gained 12.1% in the past month compared with the industry’s 7.4% rally.
Other Stocks to Consider
Other top-ranked stocks in the same sector include Duke Energy Corporation (DUK - Free Report) , IDACORP Inc. (IDA - Free Report) and Alliant Energy (LNT - Free Report) , each currently holding a Zacks Rank #2.
The long-term (three to five years) earnings growth of Duke Energy, IDACORP, and Alliant Energy is projected at 5.3%, 4.4%, and 6%, respectively.
The Zacks Consensus Estimate for 2021 earnings for Duke Energy, IDACORP, and Alliant Energy has moved up 0.2%, 0.4%, and 1.9%, respectively, in the past 90 days.
Duke Energy, IDACORP, and Alliant Energy’s shares have returned 6%, 14.3%, and 8.9%, respectively, in the past six months.