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NiSource, Inc (NI) - free report >>
Spire Inc. (SR) - free report >>
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Reasons to Add MGE Energy (MGEE) to Your Portfolio Right Now
MGE Energy Inc.’s (MGEE - Free Report) strong fundamentals and a solid financial position with favorable growth estimates make it a good investment choice.
MGE Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Growth Projections
The Zacks Consensus Estimate for 2023 earnings is pegged at $3.36 per share, suggesting an increase of 2.43% in the past 60 days.
Dividend Yield & Long-Term Earnings Growth
MGE Energy’s current dividend yield is 2.18%, better than the Zacks S&P 500 Composite’s average yield of 1.74%.
MGEE’s long-term (three- to five-year) earnings growth rate is projected at 5.35%.
Financial Position
MGE Energy’s debt to capital is 35.77%, comparing favorably with the industry’s 54.14%. Its times interest earned (TIE) ratio also improved to 6.1 at the end of the fourth quarter of 2022 from 5.7 at the end of the third quarter. This strong TIE ratio reflects the company’s ability to meet its debt obligations in the near future.
Return on Equity (ROE)
The company’s ROE for the trailing 12 months is 10.41%, comparing favorably with the industry’s 10.17%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than its peers.
Price Performance
In the past three months, the stock has gained 2.1% against the industry’s decline of 8.5%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same sector are Spire Inc. (SR - Free Report) , NiSource (NI - Free Report) and NewJersey Resources (NJR - Free Report) , each currently carrying a Zacks Rank #2.
The long-term earnings growth of Spire, NiSource and NewJersey Resources is projected at 4.2%, 6.8% and 6%, respectively.
In the past 60 days, the Zacks Consensus Estimate for NiSource and NewJersey Resources’ 2023 earnings has moved up 0.3% and 6%, respectively. In the same time frame, the Zacks Consensus Estimate for Spire’s fiscal 2023 earnings moved up 1.93%.