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Here's Why You Should Invest in Evergy (EVRG) Stock Now
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Evergy’s (EVRG - Free Report) planned investments help to improve its service reliability. It also continues to benefit from its expansion of operations in the transmission market through collaborations, strategic acquisitions and partnerships. Given its growth opportunities, EVRG makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for EVRG’s 2024 earnings per share (EPS) has increased 0.3% to $3.84 in the past 60 days.
The company’s long-term (three to five years) earnings growth rate is 5%.
Debt Position
Currently, Evergy’s total debt-to-capital ratio is 56.34, better than the industry average of 59.58.
The time-to-interest earned ratio at the end of the first quarter of 2024 was 2.4. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
The company has been consistently increasing its shareholder value through dividends. Currently, EVRG’s quarterly dividend is 64.25 cents per share, up 5% from the previous level. This resulted in an annualized dividend of $2.57 per share. It aims for a dividend payout of 60-70% per year. The current dividend yield of the company is 4.62%, better than the industry's yield of 3.35%.
Strategic Investments
The company is targeting nearly $12.5 billion of expected base capital investments through 2028, including a new generation of around $2.9 billion, which is expected to be primarily a renewable generation addition. Nearly $6.7 billion of the total capital investments is targeted toward transmission and distribution systems, which would further increase the reliability of its services.
Price Performance
In the past three months, shares of the company rallied 10% compared with the industry’s growth of 1.2%.
PNM’s long-term earnings growth rate is 4.6%. The company delivered an average earnings surprise of 2.2% in the last four quarters.
PNW’s long-term earnings growth rate is 7.6%. The Zacks Consensus Estimate for Pinnacle West Capital’s 2024 EPS implies a year-over-year improvement of 7.9%.
DTE’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for DTE Energy’s 2024 EPS implies a year-over-year increase of 16.9%.
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Here's Why You Should Invest in Evergy (EVRG) Stock Now
Evergy’s (EVRG - Free Report) planned investments help to improve its service reliability. It also continues to benefit from its expansion of operations in the transmission market through collaborations, strategic acquisitions and partnerships. Given its growth opportunities, EVRG makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for EVRG’s 2024 earnings per share (EPS) has increased 0.3% to $3.84 in the past 60 days.
The company’s long-term (three to five years) earnings growth rate is 5%.
Debt Position
Currently, Evergy’s total debt-to-capital ratio is 56.34, better than the industry average of 59.58.
The time-to-interest earned ratio at the end of the first quarter of 2024 was 2.4. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
The company has been consistently increasing its shareholder value through dividends. Currently, EVRG’s quarterly dividend is 64.25 cents per share, up 5% from the previous level. This resulted in an annualized dividend of $2.57 per share. It aims for a dividend payout of 60-70% per year. The current dividend yield of the company is 4.62%, better than the industry's yield of 3.35%.
Strategic Investments
The company is targeting nearly $12.5 billion of expected base capital investments through 2028, including a new generation of around $2.9 billion, which is expected to be primarily a renewable generation addition. Nearly $6.7 billion of the total capital investments is targeted toward transmission and distribution systems, which would further increase the reliability of its services.
Price Performance
In the past three months, shares of the company rallied 10% compared with the industry’s growth of 1.2%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the same industry are PNM Resources (PNM - Free Report) , Pinnacle West Capital Corporation (PNW - Free Report) and DTE Energy (DTE - 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.
PNM’s long-term earnings growth rate is 4.6%. The company delivered an average earnings surprise of 2.2% in the last four quarters.
PNW’s long-term earnings growth rate is 7.6%. The Zacks Consensus Estimate for Pinnacle West Capital’s 2024 EPS implies a year-over-year improvement of 7.9%.
DTE’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for DTE Energy’s 2024 EPS implies a year-over-year increase of 16.9%.