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The Zacks Analyst Blog Highlights American Water Works, WEC Energy, One Gas and Dominion Energy
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For Immediate Release
Chicago, IL – April 27, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Water Works (AWK - Free Report) , WEC Energy Group (WEC - Free Report) , One Gas, Inc. (OGS - Free Report) and Dominion Energy Inc. (D - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Utility Stocks Likely to Beat Q1 Earnings Estimates
The companies belonging to the Zacks Utilities sector ensure a continuous supply of electricity, potable water and natural gas and provide wastewater services to millions of customers across the United States. The sector is off to a solid start to the first-quarter earnings season, with NextEra Energy (NEE) beating estimates by 7.3%.
Per the current Earnings Trends report, the utility sector's first-quarter earnings are expected to increase 9.3%, while revenues are estimated to decline 8%. Utilities is among the 10 Zacks sectors that are expected to earn more in the first quarter than the year-ago period.
Factors Likely to Impact Q1 Results
The overall improvement in economic conditions in the United States and a surge in commercial and industrial activities have been creating fresh demand for utility services despite the threat of the new variant of COVID-19. Fresh demand from the expanding customer base of the utilities is expected to have boosted their first-quarter performance.
The utilities remained focused on making systematic investments to add renewable energy sources to their generation portfolios and reduce emissions. Investments in expanding and strengthening transmission and distribution lines have been making the infrastructure more resilient and enabling utilities to provide 24X7 services to customers even during adverse climatic conditions. Large water utilities have been taking initiatives to replace old water mains to ensure uninterrupted services for customers.
Utilities have been focused on improving productivity and their cost structure through investments in digital technologies, integrating key systems and analyzing data to make proper decisions to improve overall operations. The utilities have been educating customers relating to the proper usage of electricity to reduce utility bills and things to do during emergency situations to reduce damage.
The new utility rates approved by different commissions across the United States are also likely to have positively impacted first-quarter earnings. First-quarter earnings are likely to have benefited from higher weather-related usage from customers than the year-ago period.
Picking Winners From the Utility Space
Choosing the right stock for one's portfolio from too many participants is certainly a tough job. An easy way to streamline the list is by selecting stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Per our proprietary methodology, Earnings ESP is a determining factor for zeroing in on stocks with maximum chances of beating on earnings. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Our research shows that stocks with the right combination of the two key ingredients have 70% higher chances of delivering an earnings surprise.
For investors looking to find winners, we have highlighted four Utility stocks that are poised to beat first-quarter earnings estimates.
Our Utility Bets for Q1
Camden, NJ-based American Water Works provides water and wastewater services to millions of customers across the United States. American Water continues to expand operations in the United States through organic and inorganic methods. This utility makes consistent investments to upgrade and maintain the aging water infrastructure. Effective cost management and new water rates effective in its service territories are likely to have boosted first-quarter earnings.
Milwaukee, WI-based WEC Energy Group provides natural gas and electricity to customers. First-quarter earnings are likely to have benefited from its ongoing regulated investment and improvement in the demand for utility services from commercial and industrial (C&I) customers. On an average, more than 60% of WEC's electricity is sold to the C&I group.
WEC Energy has an Earnings ESP of +0.34% and a Zacks Rank #3. WEC Energy is scheduled to report quarterly results on May 2.
Tulsa, OK-based ONE Gas, Inc., along with its subsidiaries, supplies natural gas to customers in the United States. First-quarter earnings are likely to have gained from strong demand from residential customers and the expansion of its overall customer base.
ONE Gas has an Earnings ESP of +1.22% and a Zacks Rank #3. ONE Gas is scheduled to report quarterly results on May 2.
Richmond, VA-based Dominion Energy Inc. provides electric and natural gas services to millions of customers in the United States. First-quarter earnings are likely to have benefited from Dominion's ongoing regulated investments and higher sales volumes than the year-ago period due to return to normal weather.
Dominion Energy has an Earnings ESP of +0.86% and a Zacks Rank #3. Dominion Energy is scheduled to report quarterly results on May 5.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights American Water Works, WEC Energy, One Gas and Dominion Energy
For Immediate Release
Chicago, IL – April 27, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: American Water Works (AWK - Free Report) , WEC Energy Group (WEC - Free Report) , One Gas, Inc. (OGS - Free Report) and Dominion Energy Inc. (D - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
4 Utility Stocks Likely to Beat Q1 Earnings Estimates
The companies belonging to the Zacks Utilities sector ensure a continuous supply of electricity, potable water and natural gas and provide wastewater services to millions of customers across the United States. The sector is off to a solid start to the first-quarter earnings season, with NextEra Energy (NEE) beating estimates by 7.3%.
Per the current Earnings Trends report, the utility sector's first-quarter earnings are expected to increase 9.3%, while revenues are estimated to decline 8%. Utilities is among the 10 Zacks sectors that are expected to earn more in the first quarter than the year-ago period.
Factors Likely to Impact Q1 Results
The overall improvement in economic conditions in the United States and a surge in commercial and industrial activities have been creating fresh demand for utility services despite the threat of the new variant of COVID-19. Fresh demand from the expanding customer base of the utilities is expected to have boosted their first-quarter performance.
The utilities remained focused on making systematic investments to add renewable energy sources to their generation portfolios and reduce emissions. Investments in expanding and strengthening transmission and distribution lines have been making the infrastructure more resilient and enabling utilities to provide 24X7 services to customers even during adverse climatic conditions. Large water utilities have been taking initiatives to replace old water mains to ensure uninterrupted services for customers.
Utilities have been focused on improving productivity and their cost structure through investments in digital technologies, integrating key systems and analyzing data to make proper decisions to improve overall operations. The utilities have been educating customers relating to the proper usage of electricity to reduce utility bills and things to do during emergency situations to reduce damage.
The new utility rates approved by different commissions across the United States are also likely to have positively impacted first-quarter earnings. First-quarter earnings are likely to have benefited from higher weather-related usage from customers than the year-ago period.
Picking Winners From the Utility Space
Choosing the right stock for one's portfolio from too many participants is certainly a tough job. An easy way to streamline the list is by selecting stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Per our proprietary methodology, Earnings ESP is a determining factor for zeroing in on stocks with maximum chances of beating on earnings. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Our research shows that stocks with the right combination of the two key ingredients have 70% higher chances of delivering an earnings surprise.
For investors looking to find winners, we have highlighted four Utility stocks that are poised to beat first-quarter earnings estimates.
Our Utility Bets for Q1
Camden, NJ-based American Water Works provides water and wastewater services to millions of customers across the United States. American Water continues to expand operations in the United States through organic and inorganic methods. This utility makes consistent investments to upgrade and maintain the aging water infrastructure. Effective cost management and new water rates effective in its service territories are likely to have boosted first-quarter earnings.
American Water Works has an Earnings ESP of +1.00% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
American Water Works is scheduled to report quarterly results on Apr 27.
American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote
Milwaukee, WI-based WEC Energy Group provides natural gas and electricity to customers. First-quarter earnings are likely to have benefited from its ongoing regulated investment and improvement in the demand for utility services from commercial and industrial (C&I) customers. On an average, more than 60% of WEC's electricity is sold to the C&I group.
WEC Energy has an Earnings ESP of +0.34% and a Zacks Rank #3. WEC Energy is scheduled to report quarterly results on May 2.
WEC Energy Group, Inc. price-eps-surprise | WEC Energy Group, Inc. Quote
Tulsa, OK-based ONE Gas, Inc., along with its subsidiaries, supplies natural gas to customers in the United States. First-quarter earnings are likely to have gained from strong demand from residential customers and the expansion of its overall customer base.
ONE Gas has an Earnings ESP of +1.22% and a Zacks Rank #3. ONE Gas is scheduled to report quarterly results on May 2.
ONE Gas, Inc. price-eps-surprise | ONE Gas, Inc. Quote
Richmond, VA-based Dominion Energy Inc. provides electric and natural gas services to millions of customers in the United States. First-quarter earnings are likely to have benefited from Dominion's ongoing regulated investments and higher sales volumes than the year-ago period due to return to normal weather.
Dominion Energy has an Earnings ESP of +0.86% and a Zacks Rank #3. Dominion Energy is scheduled to report quarterly results on May 5.
Dominion Energy Inc. price-eps-surprise | Dominion Energy Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.