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Zacks Investment Ideas feature highlights: Otter Tail, National Fuel Gas and Consolidated Water
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For Immediate Release
Chicago, IL – October 5, 2022 – Today, Zacks Investment Ideas feature highlights Otter Tail Corp. (OTTR - Free Report) , National Fuel Gas Co. (NFG - Free Report) and Consolidated Water Co. (CWCO - Free Report) .
3 Top-Ranked Utility Stocks Shaking Off Market Woes
The Zacks Utilities sector has been notably defensive in 2022, down nearly 7% vs. the S&P 500's decline of roughly 20%. It goes without saying that the sector has been a bright spot in an otherwise dim market.
Consumers have a never-ending need for the services provided by these companies, which explains why they've fared better than most.
Further, the sector is highly ranked (number two out of a total of 16 Zacks sectors), indicating favorable earnings estimate revisions have been coming in.
For the cherry on top, stocks in the sector generally pay rock-solid dividends, undoubtedly a major positive that all investors love.
For those looking to tap into the realm, three highly ranked stocks – Otter Tail Corp., National Fuel Gas Co.and Consolidated Water Co.– all deserve consideration.
Let's take a deeper dive into each one.
Otter Tail Corp.
Otter Tail's primary business is the production, transmission, distribution, and sale of electric energy.
Analysts have upped their earnings outlook across the board over the last 60 days, pushing OTTR into a Zacks Rank #1 (Strong Buy).
As mentioned, utility stocks reward their shareholders, and OTTR is no different – the company's 2.6% annual dividend yield is lower than its Zacks sector average, but the company has upped its dividend payout five times over the last five years with a 5.3% five-year annualized dividend growth rate.
In addition, Otter Tail has a mighty strong earnings track record, exceeding revenue and earnings estimates in eight consecutive quarters. Just in its latest print, the utility provider penciled in a 20% top-line beat paired with a steep 61% EPS beat.
Consolidated Water Co.
Consolidated Water is involved in developing and operating sea-water desalination plants and water distribution systems in water-scarce areas.
CWCO's earnings outlook has turned visibly bright over the last several months.
Like OTTR, Consolidated Water's earnings track record is impressive; the company has exceeded the Zacks Consensus EPS Estimate by double-digit percentages in each of its last five prints. Just in its latest release, the company penciled in a 12.5% bottom-line beat.
Revenue has consistently been reported above expectations as well, with CWCO registering four top-line beats over its last five quarters.
Further, CWCO's growth profile is stellar; earnings are forecasted to soar a triple-digit 220% in FY22 and a further double-digit 26% in FY23.
Top-line growth is also commendable, with revenue estimates calling for 36% and 26% growth in FY22 and FY23, respectively.
National Fuel Gas Company
National Fuel Gas Company is an integrated energy company with natural gas assets located in the prolific Appalachian basin and oil-producing assets in California.
Analysts have been bullish on their earnings outlook across nearly all timeframes over the last 60 days.
In addition, NFG shares appear reasonably priced; the company's 10.6X forward earnings multiple is well beneath its 14.2X five-year median and reflects a sizable 25% discount relative to its Zacks Sector.
NFG sports a Style Score of a B for Value.
NFG's growth projections are a significant highlight; earnings are forecasted to climb 40% in FY22 and a further 22% in FY23.
The projected earnings increase comes on top of forecasted Y/Y revenue growth of 30% and 12% in FY22 and FY23, respectively.
Bottom Line
While the broader market has struggled in 2022, the Zacks Utilities sector has put its defensive nature on full display, shaking off market woes.
The sector's demand never fades, as consumers obviously need the amenities they provide.
All three stocks above – Otter Tail Corp., National Fuel Gas Co., and Consolidated Water Co. – reside in the sector paired with a favorable Zacks Rank, telling us that their near-term earnings outlook is bright.
Why Haven't You Looked at Zacks' Top Stocks?
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/performancefor information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Otter Tail, National Fuel Gas and Consolidated Water
For Immediate Release
Chicago, IL – October 5, 2022 – Today, Zacks Investment Ideas feature highlights Otter Tail Corp. (OTTR - Free Report) , National Fuel Gas Co. (NFG - Free Report) and Consolidated Water Co. (CWCO - Free Report) .
3 Top-Ranked Utility Stocks Shaking Off Market Woes
The Zacks Utilities sector has been notably defensive in 2022, down nearly 7% vs. the S&P 500's decline of roughly 20%. It goes without saying that the sector has been a bright spot in an otherwise dim market.
Consumers have a never-ending need for the services provided by these companies, which explains why they've fared better than most.
Further, the sector is highly ranked (number two out of a total of 16 Zacks sectors), indicating favorable earnings estimate revisions have been coming in.
For the cherry on top, stocks in the sector generally pay rock-solid dividends, undoubtedly a major positive that all investors love.
For those looking to tap into the realm, three highly ranked stocks – Otter Tail Corp., National Fuel Gas Co.and Consolidated Water Co.– all deserve consideration.
Let's take a deeper dive into each one.
Otter Tail Corp.
Otter Tail's primary business is the production, transmission, distribution, and sale of electric energy.
Analysts have upped their earnings outlook across the board over the last 60 days, pushing OTTR into a Zacks Rank #1 (Strong Buy).
As mentioned, utility stocks reward their shareholders, and OTTR is no different – the company's 2.6% annual dividend yield is lower than its Zacks sector average, but the company has upped its dividend payout five times over the last five years with a 5.3% five-year annualized dividend growth rate.
In addition, Otter Tail has a mighty strong earnings track record, exceeding revenue and earnings estimates in eight consecutive quarters. Just in its latest print, the utility provider penciled in a 20% top-line beat paired with a steep 61% EPS beat.
Consolidated Water Co.
Consolidated Water is involved in developing and operating sea-water desalination plants and water distribution systems in water-scarce areas.
CWCO's earnings outlook has turned visibly bright over the last several months.
Like OTTR, Consolidated Water's earnings track record is impressive; the company has exceeded the Zacks Consensus EPS Estimate by double-digit percentages in each of its last five prints. Just in its latest release, the company penciled in a 12.5% bottom-line beat.
Revenue has consistently been reported above expectations as well, with CWCO registering four top-line beats over its last five quarters.
Further, CWCO's growth profile is stellar; earnings are forecasted to soar a triple-digit 220% in FY22 and a further double-digit 26% in FY23.
Top-line growth is also commendable, with revenue estimates calling for 36% and 26% growth in FY22 and FY23, respectively.
National Fuel Gas Company
National Fuel Gas Company is an integrated energy company with natural gas assets located in the prolific Appalachian basin and oil-producing assets in California.
Analysts have been bullish on their earnings outlook across nearly all timeframes over the last 60 days.
In addition, NFG shares appear reasonably priced; the company's 10.6X forward earnings multiple is well beneath its 14.2X five-year median and reflects a sizable 25% discount relative to its Zacks Sector.
NFG sports a Style Score of a B for Value.
NFG's growth projections are a significant highlight; earnings are forecasted to climb 40% in FY22 and a further 22% in FY23.
The projected earnings increase comes on top of forecasted Y/Y revenue growth of 30% and 12% in FY22 and FY23, respectively.
Bottom Line
While the broader market has struggled in 2022, the Zacks Utilities sector has put its defensive nature on full display, shaking off market woes.
The sector's demand never fades, as consumers obviously need the amenities they provide.
All three stocks above – Otter Tail Corp., National Fuel Gas Co., and Consolidated Water Co. – reside in the sector paired with a favorable Zacks Rank, telling us that their near-term earnings outlook is bright.
Why Haven't You Looked at Zacks' Top Stocks?
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.
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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/performancefor information about the performance numbers displayed in this press release.