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

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Earnings estimates for Evergy Inc. (EVRG - Free Report) have been revised upward over the past 90 days, reflecting analysts’ optimism surrounding the stock. The Zacks Consensus Estimate for 2019 earnings has moved up 0.7% to $2.93 during the said period.

Evergy, together with its subsidiaries, provides clean, safe, and reliable energy to 1.6 million customers in Kansas and Missouri.
 
Let’s focus on the factors that make Evergy a good investment option at the moment.

Zacks Rank & VGM Score

Evergy currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum, with the score being a weighted combination of all three factors. Back-tested results show that stocks with a favorable VGM Score of A or B coupled with a solid Zacks Rank offer the best investment options.

Earnings Surprise & Estimate Revision

Evergy delivered a positive surprise of 4.76% in the last reported quarter. Its long-term (three to five years) earnings growth is pegged at 7.72%.

The company’s earnings estimates for 2019 moved up 12.82% year over year to $2.93 per share. Its total revenue estimates for 2019 moved up 27.19% year over year to $5.64 billion.

Price Movement
 
Evergy’s shares have gained 13.1% against its industry’s decline of 3.7% over the past 12 months.



Return on Equity (ROE) and Shareholder Value

Evergy’s ROE of 7.53%, compared with the industry average of 6.01%, indicates the company’s efficiency in utilizing its shareholders’ funds.

Evergy is planning to repurchase up to 60 million shares of its common stock or 22% of its outstanding shares over the next two years. This is likely to stabilize capital structure and have a positive impact on earnings per share of the company. It repurchased more than 9.5 million shares as of November 2018.

Focus on Clean Energy
 
Evergy continues to diversify its clean electricity generation and lower carbon emissions. Initiatives have been taken to shut down 2,200 MW of fossil fuel generation units and add 3,800 MW of wind power generation in its portfolio within 2020. The company has plans to invest $6 billion within the 2018-2022 time period, in order to strengthen and expand its operation.

Other Key Picks

Other top-ranked stocks from the same industry include NextEra Energy Partners L.P. (NEP - Free Report) , Central Puerto S.A. Sponsored ADR (CEPU - Free Report) and Covanta Holding Corporation . While NextEra Energy Partners and Central Puerto sport a Zacks Rank #1, Covanta Holding carries a Zacks Rank #2 (Buy).

NextEra Energy Partners, Central Puerto and Covanta Holding‘s Zacks Consensus Estimate for 2019 earnings moved up 3.6% and 15% and 42.8%, respectively, over the past 90 days.

Long-term earnings growth for NextEra Energy Partners and Covanta Holding is currently pegged at 9% and 15%, respectively.


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NextEra Energy Partners, LP (NEP) - free report >>

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Central Puerto S.A. Sponsored ADR (CEPU) - free report >>

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