Hawaiian Electric’s HE strong market penetration, focus on growing its renewable assets and systematic investments in transmission and distribution projects will drive growth over the long haul.
Let’s discuss the factors that make Hawaiian Electric an appropriate investment option at the moment.
Zacks Rank & VGM Score
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has an impressive VGM Score of B. 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 the best investment options.
In the past 12 months, Hawaiian Electric’s shares have gained 5.8% against the industry’s decline of 13.1%.
Dividend Yield & Return on Equity (ROE)
Utility companies generally distribute dividends. Currently, the company has a dividend yield of 3.30% compared with the Zacks S&P 500 composite’s 2.53%
ROE is a measure of a company’s efficiency in utilizing shareholder’s funds. Hawaiian Electric’s ROE for the trailing 12 months is 9.86% compared with the industry’s ROE of 9.76%.
The debt-to-capital is a good indicator of the financial position of a company. The indicator shows how much debt is used to run the business. The company has a debt-to-capital of 49.08% compared with the industry’s 51.32%.
Other Key Picks
Some other top-ranked stocks from the same industry are NorthWestern Corporation NWE, Pacific Gas & Electric Co. PCG and Southern Company SO. NorthWestern sports a Zacks Rank #1, while Pacific Gas & Electric and Southern Company carry a Zacks Rank #2 (Buy).
Long-term earnings growth of Pacific Gas & Electric, NorthWestern and Southern Company is pegged at 2.50%, 3.10% and 4%, respectively.
Pacific Gas & Electric, NorthWestern and Southern Company have a trailing four-quarter positive earnings surprise of 7.35%, 7.62% and 8.13%, on average, respectively.
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