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.
Here's Why You Should Add PPL to Your Portfolio Right Now
Read MoreHide Full Article
PPL Corporation’s (PPL - Free Report) strategic investment plans will further strengthen its infrastructure. The company’s focus on clean generation and growth in domestic operations boosts its overall performance. Given its growth opportunities, PPL makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for PPL’s fourth-quarter 2023 earnings per share (EPS) has increased 14.7% to 39 cents in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pinned at $8 billion, indicates a year-over-year increase of 1.24%.
PPL’s long-term (three to five years) earnings growth rate is 7.42%.
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 7.82%, higher than the industry’s average of 7%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Debt Position
Currently, PPL’s total debt to capital is 51.47%, much better than the industry’s average of 61.19%.
The time to interest earned ratio at the end of third-quarter 2023 was 2.5. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
PPL has a long history of dividend payments and plans to increase the same in the range of 6-8%, subject to approval by its board of directors. Currently, its quarterly dividend is 24 cents per share, resulting in an annualized dividend of 96 cents. The company’s current dividend yield is 3.52% compared with the Zacks S&P 500 Composite's average of 1.39%.
Systematic Investments
PPL’s capital investment plan primarily focuses on infrastructure construction projects for generation, transmission and distribution. Customers have been experiencing fewer outages, courtesy of the ongoing investments in infrastructure strengthening. PPL expects a regulated capital investment of $12 billion through 2026. It also plans capital investments of nearly $2.4 billion for 2023 and $2.7 billion for 2024.
Price Performance
In the past six months, PPL’s shares have rallied 0.7% against the industry’s average decline of 3%.
Consolidated Edison’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2023 EPS is pinned at $5.01, implying a year-over-year increase of 10.1%.
IDACORP’s long-term earnings growth rate is 4.11%. The consensus estimate for the company’s 2023 EPS is pegged at $5.12, indicating a year-over-year improvement of 0.2%.
OGE Energy’s long-term earnings growth rate is 3.65%. It delivered an average earnings surprise of 8.3% in the last four quarters.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Add PPL to Your Portfolio Right Now
PPL Corporation’s (PPL - Free Report) strategic investment plans will further strengthen its infrastructure. The company’s focus on clean generation and growth in domestic operations boosts its overall performance. Given its growth opportunities, PPL makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for PPL’s fourth-quarter 2023 earnings per share (EPS) has increased 14.7% to 39 cents in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pinned at $8 billion, indicates a year-over-year increase of 1.24%.
PPL’s long-term (three to five years) earnings growth rate is 7.42%.
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 7.82%, higher than the industry’s average of 7%. This indicates that the company has been utilizing its funds more constructively than its peers in the electric power utility industry.
Debt Position
Currently, PPL’s total debt to capital is 51.47%, much better than the industry’s average of 61.19%.
The time to interest earned ratio at the end of third-quarter 2023 was 2.5. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
PPL has a long history of dividend payments and plans to increase the same in the range of 6-8%, subject to approval by its board of directors. Currently, its quarterly dividend is 24 cents per share, resulting in an annualized dividend of 96 cents. The company’s current dividend yield is 3.52% compared with the Zacks S&P 500 Composite's average of 1.39%.
Systematic Investments
PPL’s capital investment plan primarily focuses on infrastructure construction projects for generation, transmission and distribution. Customers have been experiencing fewer outages, courtesy of the ongoing investments in infrastructure strengthening. PPL expects a regulated capital investment of $12 billion through 2026. It also plans capital investments of nearly $2.4 billion for 2023 and $2.7 billion for 2024.
Price Performance
In the past six months, PPL’s shares have rallied 0.7% against the industry’s average decline of 3%.
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) , IDACORP Inc. (IDA - Free Report) and OGE Energy Corp. (OGE - Free Report) , each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consolidated Edison’s long-term earnings growth rate is 2%. The Zacks Consensus Estimate for the company’s 2023 EPS is pinned at $5.01, implying a year-over-year increase of 10.1%.
IDACORP’s long-term earnings growth rate is 4.11%. The consensus estimate for the company’s 2023 EPS is pegged at $5.12, indicating a year-over-year improvement of 0.2%.
OGE Energy’s long-term earnings growth rate is 3.65%. It delivered an average earnings surprise of 8.3% in the last four quarters.