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Here's Why You Should Add NorthWestern to Your Portfolio

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NorthWestern Corporation’s (NWE - Free Report) systematic long-term investments and completion of South Dakota competitive solicitation process for new generation bode well.

Let’s discuss the factors that make NorthWestern an appropriate investment option at the moment.

Zacks Rank & Surprise History

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

NorthWestern has a trailing four-quarter positive earnings surprise of 10.49% in the last four quarters, on average.

Growth Projection

The Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $3.53 per share, which reflects year-over-year growth of 2.92%. The company’s long-term (3 to 5 years) earnings growth rate is pegged at 2.80%.  

Long-Term Price Movement & Dividend Yield

In the past three years, NorthWestern’s shares have rallied 26.5% compared with the industry’s rise of 21.3%.



Currently, the company has a dividend yield of 3.23% compared with the Zacks S&P 500 composite’s 1.78% and the industry’s 2.81%.

Investment Plan

For the 2019-2023 period, the company expects to make investments of approximately $1.6 billion. NorthWestern expects the capital plan to be around $400 million in 2020.

Other Key Picks

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

The AES Corporation, Entergy and Dominion Energy have a trailing four-quarter positive earnings surprise of 4.68%, 4.79% and 0.10%, on average, respectively.

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

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