We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
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.
Evergy to Benefit From Investments & Renewable Expansion
Read MoreHide Full Article
Evergy, Inc.’s (EVRG - Free Report) planned investments and strategic acquisitions should further help expand its operations in the transmission market. The company intends to add more renewable assets to boost its overall performance.
However, this Zacks Rank #3 (Hold) company faces risks related to delays in completing ongoing capital projects and weather fluctuations.
Tailwinds Favoring EVRG
Evergy’s long-term investment plans are focused on transmission, distribution infrastructure upgrades and customer-facing platforms to improve reliability. The company targets nearly $16.2 billion of capital investments for 2025-2029. Evergy's planned capital expenditures are in sync with its new Integrated Resource Plan. The company intends to achieve net-zero emissions by 2045, with an interim goal of reducing carbon dioxide emissions by 70% within 2030.
EVRG aims to lower emissions by shutting down fossil-fuel-based plants and adding new efficient units of clean power generation. The use of more advanced technology to produce electricity from efficient renewable units is also reducing operating costs and boosting margins.
In October 2024, Evergy announced its plan to construct two combined-cycle natural gas plants in Kansas. Evergy Kansas Central and Evergy Missouri West will jointly own the first site, which is expected to have an initial generating capacity of nearly 705 megawatts (MW). The plant is anticipated to begin operations by the summer of 2029. The second site, which is expected to begin operations by the summer of 2030, also has a capacity of almost 705 MW.
Headwinds for EVRG
The company’s capital projects could get delayed due to permit delays, inadequate availability or increased cost of equipment and materials, which are beyond its control. This could increase the cost of the projects, thereby adversely impacting EVRG’s profitability.
Electricity sales are seasonal and changing weather conditions play a pivotal role in the company’s overall performance. Mild winter and summer season can reduce demand for electricity, affecting the company’s performance.
EVRG’s Price Performance
In the past six months, shares of the company have risen 15.8% compared with the industry’s 6.8% growth.
VST’s long-term (three to five years) earnings growth rate is 17.4%. The Zacks Consensus Estimate for 2024 earnings per share (EPS) indicates a year-over-year increase of 24.8%.
IDA’s long-term earnings growth rate is 8.31%. The Zacks Consensus Estimate for 2024 EPS indicates year-over-year growth of 5.5%.
DTE’s long-term earnings growth rate is 8.04%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year improvement of 18%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Evergy to Benefit From Investments & Renewable Expansion
Evergy, Inc.’s (EVRG - Free Report) planned investments and strategic acquisitions should further help expand its operations in the transmission market. The company intends to add more renewable assets to boost its overall performance.
However, this Zacks Rank #3 (Hold) company faces risks related to delays in completing ongoing capital projects and weather fluctuations.
Tailwinds Favoring EVRG
Evergy’s long-term investment plans are focused on transmission, distribution infrastructure upgrades and customer-facing platforms to improve reliability. The company targets nearly $16.2 billion of capital investments for 2025-2029. Evergy's planned capital expenditures are in sync with its new Integrated Resource Plan. The company intends to achieve net-zero emissions by 2045, with an interim goal of reducing carbon dioxide emissions by 70% within 2030.
EVRG aims to lower emissions by shutting down fossil-fuel-based plants and adding new efficient units of clean power generation. The use of more advanced technology to produce electricity from efficient renewable units is also reducing operating costs and boosting margins.
In October 2024, Evergy announced its plan to construct two combined-cycle natural gas plants in Kansas. Evergy Kansas Central and Evergy Missouri West will jointly own the first site, which is expected to have an initial generating capacity of nearly 705 megawatts (MW). The plant is anticipated to begin operations by the summer of 2029. The second site, which is expected to begin operations by the summer of 2030, also has a capacity of almost 705 MW.
Headwinds for EVRG
The company’s capital projects could get delayed due to permit delays, inadequate availability or increased cost of equipment and materials, which are beyond its control. This could increase the cost of the projects, thereby adversely impacting EVRG’s profitability.
Electricity sales are seasonal and changing weather conditions play a pivotal role in the company’s overall performance. Mild winter and summer season can reduce demand for electricity, affecting the company’s performance.
EVRG’s Price Performance
In the past six months, shares of the company have risen 15.8% compared with the industry’s 6.8% growth.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the same industry are Vistra (VST - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, and IDACORP (IDA - Free Report) and DTE Energy (DTE - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
VST’s long-term (three to five years) earnings growth rate is 17.4%. The Zacks Consensus Estimate for 2024 earnings per share (EPS) indicates a year-over-year increase of 24.8%.
IDA’s long-term earnings growth rate is 8.31%. The Zacks Consensus Estimate for 2024 EPS indicates year-over-year growth of 5.5%.
DTE’s long-term earnings growth rate is 8.04%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year improvement of 18%.