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Reasons to Add Avangrid (AGR) to Your Portfolio Right Now
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Avangrid Inc.’s (AGR - Free Report) long-term capital expenditure plans will further assist in upgrading its infrastructure and facilities. The company is expanding its clean energy generation capacity, which will boost its performance. Given its growth opportunities, AGR 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 2024 earnings per share (EPS) is pinned at $2.25 per share, indicating a year-over-year increase of 7.7%.
The Zacks Consensus Estimate for 2024 revenues is pinned at $8.63 billion, indicating a year-over-year increase of 3.8%.
The company’s long-term (three to five-year) earnings growth rate is 3.63%.
Debt Position
Currently, Avangrid’s total debt to capital is 33.88%, better than the industry’s average of 62.21%.
The time to interest earned ratio at the end of fourth-quarter 2023 was 2.6. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
The utility company has been consistently increasing shareholders value by paying dividends. Currently, its quarterly dividend is 44 cents per share, resulting in an annualized dividend of $1.76. The company’s current dividend yield is 5.54%, better than the Zacks S&P 500 Composite’s 1.31%.
Systematic Investments & Clean Power Generation
In 2023, the company reported nearly $3 billion of capital expenditures, up 18% from the prior-year level.
Avangrid, the third largest U.S. onshore wind power generator, plans to achieve carbon neutrality goals by 2035. The company successfully started the first turbine from nation-leading Vineyard Wind 1 offshore wind project as of 2023-end, and recurrent power as of Jan 2, 2024.
It is an 806 megawatts (MW) utility-scale offshore wind project. The Vineyard Wind 1 project is expected to generate clean energy equivalent to that used by more than 400,000 households and businesses in Massachusetts and reduce carbon emissions by over 1.6 million tons per year.
In Renewables, AGR reached 8.6 GW of wind and solar capacity, signed 580 MW of new and renegotiated power purchase agreements. Such developments should bolster AGR’s position in the expanding renewable energy space.
Price Performance
In the past month, shares of AGR have risen 4.4% compared with the industry’s growth of 2.2%.
IDACORP’s long-term earnings growth rate is 4.38%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $5.43, indicating year-over-year growth of 5.6%.
NiSource’s long-term earnings growth rate is 7.15%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $1.71, indicating a year-over-year improvement of 6.9%.
DTE’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $6.70, indicating a year-over-year increase of 16.9%.
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Reasons to Add Avangrid (AGR) to Your Portfolio Right Now
Avangrid Inc.’s (AGR - Free Report) long-term capital expenditure plans will further assist in upgrading its infrastructure and facilities. The company is expanding its clean energy generation capacity, which will boost its performance. Given its growth opportunities, AGR 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 2024 earnings per share (EPS) is pinned at $2.25 per share, indicating a year-over-year increase of 7.7%.
The Zacks Consensus Estimate for 2024 revenues is pinned at $8.63 billion, indicating a year-over-year increase of 3.8%.
The company’s long-term (three to five-year) earnings growth rate is 3.63%.
Debt Position
Currently, Avangrid’s total debt to capital is 33.88%, better than the industry’s average of 62.21%.
The time to interest earned ratio at the end of fourth-quarter 2023 was 2.6. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
The utility company has been consistently increasing shareholders value by paying dividends. Currently, its quarterly dividend is 44 cents per share, resulting in an annualized dividend of $1.76. The company’s current dividend yield is 5.54%, better than the Zacks S&P 500 Composite’s 1.31%.
Systematic Investments & Clean Power Generation
In 2023, the company reported nearly $3 billion of capital expenditures, up 18% from the prior-year level.
Avangrid, the third largest U.S. onshore wind power generator, plans to achieve carbon neutrality goals by 2035. The company successfully started the first turbine from nation-leading Vineyard Wind 1 offshore wind project as of 2023-end, and recurrent power as of Jan 2, 2024.
It is an 806 megawatts (MW) utility-scale offshore wind project. The Vineyard Wind 1 project is expected to generate clean energy equivalent to that used by more than 400,000 households and businesses in Massachusetts and reduce carbon emissions by over 1.6 million tons per year.
In Renewables, AGR reached 8.6 GW of wind and solar capacity, signed 580 MW of new and renegotiated power purchase agreements. Such developments should bolster AGR’s position in the expanding renewable energy space.
Price Performance
In the past month, shares of AGR have risen 4.4% compared with the industry’s growth of 2.2%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are IDACORP (IDA - Free Report) , NiSource Inc. (NI - Free Report) and DTE Energy (DTE - 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.
IDACORP’s long-term earnings growth rate is 4.38%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $5.43, indicating year-over-year growth of 5.6%.
NiSource’s long-term earnings growth rate is 7.15%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $1.71, indicating a year-over-year improvement of 6.9%.
DTE’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $6.70, indicating a year-over-year increase of 16.9%.