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4 Reasons to Add NextEra Energy Partners to Your Portfolio

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Estimates for NextEra Energy Partners, LP (NEP - Free Report) have been revised upward in the past 90 days, which reflects analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 earnings has moved up 11.9%.

Shares of NextEra Energy Partners have gained 5% in the past 12 months, against the industry’s decline of 4.4%.

Let’s focus on the factors that make NextEra Energy Partners an attractive stock to invest in.

Zacks Rank & Surprise History

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

NextEra Energy Partners pulled off an average positive earnings surprise of 99.08% in the last four quarters.

Growth Projections

The Zacks Consensus Estimate for 2019 earnings per share is pegged at $2.16. Its long-term earnings growth for 3-5 years is pegged at 9% The Zacks Consensus Estimate for 2019 revenues is pegged at $1.37 billion.

 VGM Score

NextEra Energy Partners 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 bullish Zacks Rank are best investment options.

Expansion of Renewable Portfolio

The partnership is well poised to gain through its pipeline assets in Texas. Focus on lower emission and reduced price of clean fossil fuel are driving the demand for natural gas. Improving demand is expected to create more opportunity for this partnership and expand its pipeline operation in North America. The partnership aims to expand existing operations through organic growth and selective acquisitions, which are in sync with the existing renewable energy and natural gas pipeline projects in its portfolio. In this line, the partnership has decided to acquire 1,388 megawatts (MW) of solar and wind projects from NextEra Energy Resources, which will further expand NextEra Energy Partners’ existing portfolio of renewable assets.

Stocks to Consider

A few other top-ranked stocks in the Oils-Energy sector include Par Pacific Holdings, Inc (PARR - Free Report) , RGC Resources Inc (RGCO - Free Report) and CrossAmerica Partners LP (CAPL - Free Report) . Par Pacific Holdings and RGC Resources sport a Zacks Rank #1, while CrossAmerica Partners carries a Zacks Rank #2 (Buy).

Par Pacific Holdings delivered a positive surprise of 118.86% in the past four quarters. The Zacks Consensus Estimate for 2019 earnings rallied 28.5% to $1.26 per share in the past 90 days.

RGC Resources delivered a positive surprise of 87.64% in the past four quarters. The Zacks Consensus Estimate for 2019 earnings moved up 3% to $1.03 per share in the past 90 days.

CrossAmerica Partners delivered a positive surprise of 436.67% in the past four quarters. The Zacks Consensus Estimate for 2019 earnings moved up 91.1% to 65 cents per unit in the past 90 days.

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