We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Reasons to Add Chesapeake Utilities (CPK) to Your Portfolio
Read MoreHide Full Article
Chesapeake Utilities Corporation (CPK - Free Report) and its subsidiaries are engaged in regulated natural gas distribution and transmission operations. Chesapeake Utilities optimizes earnings potential of the existing businesses through organic growth and business transformation initiatives.
The Zacks Consensus Estimate for 2022 earnings has moved up 3.5% in the past 60 days to $4.75 per share. Revenue estimates for 2022 of $612.4 million imply year-over-year growth of 8%.
Chesapeake Utilities has an impressive earnings surprise history. Its trailing four-quarter earnings surprise is 12.6%, on average.
Stable Investments
Chesapeake Utilities makes consistent investments to upgrade and maintain the existing infrastructure as well as expand operations. CPK has invested $1.2 billion since 2025 to strengthen operations and anticipates investing in the range of $750 million to $1 billion in the 2021-2025 time frame.
The well-chalked-out capital expenditure of CPK is also driving earnings growth per share. Chesapeake Utilities expects the investments to help it drive earnings at a CAGR of 9.1-9.5% in the 2016-2025 time frame.
Return on Equity (ROE)
ROE indicates how efficiently a company is utilizing shareholders’ funds in the business to generate returns. At present, CPK’s ROE is 11.31%, higher than the industry average of 10.2%, which indicates that the company is utilizing its funds more effectively than its industry peers.
Dividend
Chesapeake Utilities has a dividend yield of 1.32% versus the Zacks S&P 500 composite’s average of 1.3%. CPK has a long history of dividend payment, having distributed dividends for 61 consecutive years and raised the annual dividend rate for the past 18 years.
Chesapeake Utilities has doubled its annualized dividend over the past 10 years. CPK’s earnings growth drives dividend.
Price Performance
In the past six months, the stock has gained 17.4% compared with the industry’s 2% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the Zacks Utilities sector include Duke Energy Corporation (DUK - Free Report) , IDACORP Inc. (IDA - Free Report) and Alliant Energy (LNT - Free Report) , each holding a Zacks Rank #2.
The long-term (three to five years) earnings growth of Duke Energy, IDACORP Inc., and Alliant Energy is projected at 5.3%, 4.4%, and 6%, respectively. Duke Energy, IDACORP Inc., and Alliant Energy delivered an earnings surprise of 2.3%, 5.2%, and 4.4%, respectively, on average, in the last four quarters.
The Zacks Consensus Estimate for 2022 earnings per share of Duke Energy, IDACORP Inc., and Alliant Energy has moved up 0.2%, 0.4%, and 1.9%, respectively, in the past 60 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Reasons to Add Chesapeake Utilities (CPK) to Your Portfolio
Chesapeake Utilities Corporation (CPK - Free Report) and its subsidiaries are engaged in regulated natural gas distribution and transmission operations. Chesapeake Utilities optimizes earnings potential of the existing businesses through organic growth and business transformation initiatives.
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 Projection & Surprise History
The Zacks Consensus Estimate for 2022 earnings has moved up 3.5% in the past 60 days to $4.75 per share. Revenue estimates for 2022 of $612.4 million imply year-over-year growth of 8%.
Chesapeake Utilities has an impressive earnings surprise history. Its trailing four-quarter earnings surprise is 12.6%, on average.
Stable Investments
Chesapeake Utilities makes consistent investments to upgrade and maintain the existing infrastructure as well as expand operations. CPK has invested $1.2 billion since 2025 to strengthen operations and anticipates investing in the range of $750 million to $1 billion in the 2021-2025 time frame.
The well-chalked-out capital expenditure of CPK is also driving earnings growth per share. Chesapeake Utilities expects the investments to help it drive earnings at a CAGR of 9.1-9.5% in the 2016-2025 time frame.
Return on Equity (ROE)
ROE indicates how efficiently a company is utilizing shareholders’ funds in the business to generate returns. At present, CPK’s ROE is 11.31%, higher than the industry average of 10.2%, which indicates that the company is utilizing its funds more effectively than its industry peers.
Dividend
Chesapeake Utilities has a dividend yield of 1.32% versus the Zacks S&P 500 composite’s average of 1.3%. CPK has a long history of dividend payment, having distributed dividends for 61 consecutive years and raised the annual dividend rate for the past 18 years.
Chesapeake Utilities has doubled its annualized dividend over the past 10 years. CPK’s earnings growth drives dividend.
Price Performance
In the past six months, the stock has gained 17.4% compared with the industry’s 2% growth.
Other Stocks to Consider
Other top-ranked stocks in the Zacks Utilities sector include Duke Energy Corporation (DUK - Free Report) , IDACORP Inc. (IDA - Free Report) and Alliant Energy (LNT - Free Report) , each holding a Zacks Rank #2.
The long-term (three to five years) earnings growth of Duke Energy, IDACORP Inc., and Alliant Energy is projected at 5.3%, 4.4%, and 6%, respectively. Duke Energy, IDACORP Inc., and Alliant Energy delivered an earnings surprise of 2.3%, 5.2%, and 4.4%, respectively, on average, in the last four quarters.
The Zacks Consensus Estimate for 2022 earnings per share of Duke Energy, IDACORP Inc., and Alliant Energy has moved up 0.2%, 0.4%, and 1.9%, respectively, in the past 60 days.