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Here's Why EVRG Stock Deserves a Spot in Your Portfolio Right Now

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Key Takeaways

  • EVRG's revenue estimate is pinned at $5.95 billion for 2025 with y/y growth of 1.80%.
  • EVRG targets carbon neutrality by 2045 with expanded transmission projects and renewables.
  • EVRG's strong TIE ratio highlights its solid capacity to meet interest obligations on time.

Evergy, Inc. (EVRG - Free Report) is expanding its operations in the transmission market through collaborations, strategic acquisitions and partnerships. The company also aims to add more renewable assets to its portfolio to achieve carbon neutrality by 2045.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick in the Zacks Utility-Electric Power industry.

EVRG’s Growth Outlook

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has remained unchanged at $4.01, while that for 2026 EPS has increased 0.47% to $4.28 over the past 60 days.

The Zacks Consensus Estimate for 2025 revenues is pegged at $5.95 billion, suggesting year-over-year improvement of 1.80%. The consensus mark for 2026 revenues is pinned at $6.23 billion, implying year-over-year growth of 4.59%.

EVRG’s long-term (three to five years) earnings growth rate is 5.78%.

EVRG’s Capital Return Program

EVRG has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 69.5 cents per share, resulting in an annualized dividend of $2.78. EVRG’s current dividend yield is 3.61%, better than the Zacks S&P 500 composite's average of 1.12%.

EVRG’s Debt Structure

The Utilities sector is capital-intensive, requiring substantial investments at regular intervals to upgrade, maintain, and expand operations. The usage of new evolving technology also requires investments. The Federal Reserve has lowered the interest rates to a range of 3.75-4%, which will benefit the utilities.

Currently, EVRG’s total debt to capital is 55.84%, better than the industry’s average of 59.51%.

EVRG’s Times Interest Earned Ratio

Evergy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.5. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

EVRG’s Share Price Performance

Over the past year, EVRG’s shares have risen 18.8%, outperforming the industry’s growth of 15.6%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Ameren Corporation (AEE - Free Report) , Entergy Corporation (ETR - Free Report) and Edison International (EIX - 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.

AEE’s long-term earnings growth rate is 8.52%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which suggests year-over-year growth of 7.78%.

ETR’s long-term earnings growth rate is 10.21%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.90, which suggests year-over-year growth of 6.85%. 

EIX’s long-term earnings growth rate is 10.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $6.10, which suggests year-over-year growth of 23.73%. 

 

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