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Here's Why You Should Add PPL to Your Portfolio Right Now
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PPL Corp.’s (PPL - Free Report) systematic long-term investment plans will increase the safety and reliability of its electricity and gas distribution and transportation systems, and drive its performance. The company will benefit from the addition of clean energy to its portfolio and a stable financial position.
Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for 2023 earnings per share (EPS) is pegged at $1.58, indicating a year-over-year improvement of 12.1%.
The Zacks Consensus Estimate for 2023 sales is pegged at $8.01 billion, indicating a year-over-year improvement of 1.4%.
PPL’s long-term (three to five-year) earnings growth rate is 7.4%.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, PPL’s ROE is 7.8%, which is higher than the industry’s average of 7%. This indicates that the company has been utilizing its funds more effectively than its peers in the electric power utility industry.
Debt Position
PPL’s total debt to capital was 51.47% as of Sep 30, 2023, which is much better than the industry’s average of 59.16%.
PPL’s time-to-interest earned ratio as of Sep 30, 2023, was 2.55. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
PPL continues to increase shareholders’ value through dividend payments. The current quarterly dividend is 24 cents per share. The annualized dividend for 2023 is 96 cents per share, indicating a 9.1% increase from the previous year’s level. The company expects to achieve a dividend growth of 6-8% per year through at least 2026, subject to approval.
Its current dividend yield is 3.85%, better than the Zacks S&P 500 Composite’s 1.46%.
Capital Investment
PPL’s long-term capital expenditure plan will further strengthen its infrastructure and operations. The company plans to invest a total of $11.9 billion during 2023-2026. This will support a net financial EPS growth target of 6-8%.
Price Performance
In the past month, shares of PPL have risen 3.2% compared with the broader industry’s 0.7% growth.
Image: Bigstock
Here's Why You Should Add PPL to Your Portfolio Right Now
PPL Corp.’s (PPL - Free Report) systematic long-term investment plans will increase the safety and reliability of its electricity and gas distribution and transportation systems, and drive its performance. The company will benefit from the addition of clean energy to its portfolio and a stable financial position.
Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for 2023 earnings per share (EPS) is pegged at $1.58, indicating a year-over-year improvement of 12.1%.
The Zacks Consensus Estimate for 2023 sales is pegged at $8.01 billion, indicating a year-over-year improvement of 1.4%.
PPL’s long-term (three to five-year) earnings growth rate is 7.4%.
Return on Equity
Return on Equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, PPL’s ROE is 7.8%, which is higher than the industry’s average of 7%. This indicates that the company has been utilizing its funds more effectively than its peers in the electric power utility industry.
Debt Position
PPL’s total debt to capital was 51.47% as of Sep 30, 2023, which is much better than the industry’s average of 59.16%.
PPL’s time-to-interest earned ratio as of Sep 30, 2023, was 2.55. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
PPL continues to increase shareholders’ value through dividend payments. The current quarterly dividend is 24 cents per share. The annualized dividend for 2023 is 96 cents per share, indicating a 9.1% increase from the previous year’s level. The company expects to achieve a dividend growth of 6-8% per year through at least 2026, subject to approval.
Its current dividend yield is 3.85%, better than the Zacks S&P 500 Composite’s 1.46%.
Capital Investment
PPL’s long-term capital expenditure plan will further strengthen its infrastructure and operations. The company plans to invest a total of $11.9 billion during 2023-2026. This will support a net financial EPS growth target of 6-8%.
Price Performance
In the past month, shares of PPL have risen 3.2% compared with the broader industry’s 0.7% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Consolidated Edison Inc. (ED - Free Report) , NiSource Inc. (NI - Free Report) and PNM Resources Inc. (PNM - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ED’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2023 EPS indicates year-over-year growth of 7.9%.
NI’s long-term earnings growth rate is 7.2%. The Zacks Consensus Estimate for the company’s 2023 EPS indicates a year-over-year improvement of 8.2%.
PNM’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for the company’s 2023 EPS indicates a year-over-year increase of 1.1%.