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Reasons to Add Evergy (EVRG) to Your Portfolio Right Now

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Evergy, Inc.’s (EVRG - Free Report) strategic capital investments to expand operations, strengthen infrastructure and improve reliability are likely to boost its performance. Given its growth opportunities, EVRG makes for a solid investment option in the utility sector.

The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.

Growth Projections

The Zacks Consensus Estimate for 2024 earnings per share (EPS) is pegged at $3.84, which indicates a year-over-year growth of 8.5%.

The consensus estimate for 2025 EPS has increased 0.2% in the past 30 days to $4.04.
 
EVRG’s long-term (three to five years) earnings growth rate is 5%.

Dividend Yield

Evergy distributes dividends to shareholders on a regular basis. Its current dividend yield is 4.39%, which is better than the industry’s average of 3.49%. It aims for a dividend payout of 60-70% per year.

Debt Position

Evergy’s total debt to capital is currently 56.34%, compared with its industry average of 60.93%.
 
The time-to-interest earned ratio at the end of the second quarter was 2.4. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

Systemic Investments

Evergy’s long-term investment plans are focused on transmission, distribution infrastructure upgrades and customer-facing platforms to improve reliability. It aims to invest nearly $12.5 billion in capital investments by 2028.

The planned capital expenditures of the company are in sync with its new Integrated Resource Plan, which intends to achieve net-zero emissions by 2045, with an interim goal of 70% reduction in carbon dioxide emissions by 2030.

Price Performance

Shares of EVRG have gained 6.3% in the past three months against the industry’s 0.7% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Other top-ranked stocks in the industry are TransAlta Corporation (TAC - Free Report) , The AES Corporation (AES - Free Report) and NiSource Inc. (NI - Free Report) . Each of these stocks currently carries a Zacks Rank of 2. You can see the complete list of Zacks Rank #1 (Strong Buy) stocks here.

TransAlta Corporation delivered an average earnings surprise of 98% in the last four quarters. The Zacks Consensus Estimate for 2024 earnings has increased 4.2% in the past 30 days.

AES Corporation delivered an average earnings surprise of 19.2% in the last four quarters. The consensus estimate for earnings for 2024 indicates year-over-year growth of 8.5%.

NiSource delivered an average earnings surprise of 20.6% in the last four quarters. The Zacks Consensus Estimate for earnings for 2024 indicates year-over-year growth of 7.5%.

 


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Evergy Inc. (EVRG) - free report >>

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