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Reasons to Add Portland General Electric (POR) in Portfolio

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Portland General Electric Company’s (POR - Free Report) focus on meeting customer needs through Integrated Resource Plan, systematic long-term investments bode well.

Let’s focus on the factors that make Portland General Electric an appropriate investment option at the moment.

Zacks Rank & Price Movement

Portland General Electric currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 12 months, Portland General Electric’s shares have rallied 21.6% compared with the industry’s rise of 18.2%.

Growth Projections

The Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $2.59 per share on revenues of $2.14 billion. The bottom-line figure suggests 8.16% year-over-year increase. The same for the top line calls for a 0.92% rise on a year-on-year basis. The company’s long-term (3 to 5 years) earnings growth rate is pegged at 4.50%.  

Debt/Capital & Dividend Yield

The company’s current debt to capital is pegged at 49.01% compared with the industry’s 51.35%.

Currently, the company has a dividend yield of 2.79% compared with the Zacks S&P 500 Composite’s 1.8%.

Investment Plan & Renewable Energy Focus

For the 2019-2023 period, the company expects to make investments of approximately $3,080 million. The investment will be aimed toward safety and resiliency of the company’s infrastructure. Moreover, the company focuses on reducing carbon emission and has chosen renewable sources like solar, wind and water to generate cleaner energy. Portland General Electric’s aims decarbonization through 2050.

Other Key Picks

Some other top-ranked stocks from the same industry are The AES Corporation AES, Entergy Corporation ETR and Dominion Energy Inc D. The AES Corporation currently sports a Zacks Rank #1, while the other two stocks carry a Zack Rank of 2.

The AES Corporation, Entergy and Dominion Energy delivered an average positive earnings surprise of 4.68%, 4.79% and 0.10%, respectively, in the last four quarters.

The long-term earnings growth rates for The AES Corporation, Entergy and Dominion Energy are pegged at 9.11%, 7% and 4.80%, respectively.

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