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Reasons to Add Avangrid (AGR) to Your Portfolio Right Now
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Avangrid Inc. (AGR - Free Report) , an energy services and delivery company, focuses on providing safe and reliable energy to its customers. The company’s long-term capital expenditure plans and the expanding wind and solar generation portfolio will boost its performance.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for AGR’s 2023 earnings per share (EPS) is pegged at $2.09, indicating an increase of 1.5% in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $8.43 billion, reflecting a year-over-year increase of 6.4%.
The company’s long-term (three to five-year) earnings growth is pegged at 4.1%.
Debt Position
Avangrid’s total debt to capital was 29.23% as of Jun 30, 2023, which is much better than the industry’s average of 62.16%.
The time-to-interest earned ratio at the end of second-quarter 2023 was 2.29. The ratio, greater than one reflects Avangrid’s ability to meet future debt obligations without difficulties.
Dividend History
The utility company has been consistently paying dividends to its shareholders. Avangrid declared a quarterly dividend of 44 cents per share in July 2023, resulting in an annual payout of $1.76.
AGR’s current dividend yield is 5.84%, better than the Zacks S&P 500 Composite’s 1.73%.
Capital Investment & Clean Power Efforts
Avangrid invested nearly $1.3 billion in the first half of 2023 and plans to invest almost $3 billion in full-year 2023 to further strengthen its operation.
Avangird, the third largest U.S. onshore wind power generator, plans to achieve carbon neutrality goals by 2035. In the last 12 months, AGR reached 8.6 gigawatts (GW)s of wind and solar capacity, signed 321 megawatts (MWs) of new power purchase agreements and renegotiated 1 GW.
In August 2023, AGR announced the construction of its first large-scale solar project in California. The company is progressing on its Vineyard Wind 1 offshore project, which is on track to deliver the first power this year. This 806 MW project is expected to start commercial operations in 2024. Such developments should bolster AGR’s position in the expanding renewable energy space.
Price Performance
In the past month, shares of AGR have lost 7.3% compared with the industry’s 11% decline.
The Zacks Consensus Estimate for Vistra’s 2023 EPS is pinned at $3.54, indicating a year-over-year improvement of 220.4%. The Zacks Consensus Estimate for 2023 sales suggests an increase of 47.8% from the 2022 figure.
PNM’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for 2023 sales implies an increase of 17.2% from the 2022 figure.
ALLETE’s long-term earnings growth rate is 8.1%. The Zacks Consensus Estimate for 2023 sales indicates an increase of 23.8% from the 2022 figure.
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Reasons to Add Avangrid (AGR) to Your Portfolio Right Now
Avangrid Inc. (AGR - Free Report) , an energy services and delivery company, focuses on providing safe and reliable energy to its customers. The company’s long-term capital expenditure plans and the expanding wind and solar generation portfolio will boost its performance.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for AGR’s 2023 earnings per share (EPS) is pegged at $2.09, indicating an increase of 1.5% in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $8.43 billion, reflecting a year-over-year increase of 6.4%.
The company’s long-term (three to five-year) earnings growth is pegged at 4.1%.
Debt Position
Avangrid’s total debt to capital was 29.23% as of Jun 30, 2023, which is much better than the industry’s average of 62.16%.
The time-to-interest earned ratio at the end of second-quarter 2023 was 2.29. The ratio, greater than one reflects Avangrid’s ability to meet future debt obligations without difficulties.
Dividend History
The utility company has been consistently paying dividends to its shareholders. Avangrid declared a quarterly dividend of 44 cents per share in July 2023, resulting in an annual payout of $1.76.
AGR’s current dividend yield is 5.84%, better than the Zacks S&P 500 Composite’s 1.73%.
Capital Investment & Clean Power Efforts
Avangrid invested nearly $1.3 billion in the first half of 2023 and plans to invest almost $3 billion in full-year 2023 to further strengthen its operation.
Avangird, the third largest U.S. onshore wind power generator, plans to achieve carbon neutrality goals by 2035. In the last 12 months, AGR reached 8.6 gigawatts (GW)s of wind and solar capacity, signed 321 megawatts (MWs) of new power purchase agreements and renegotiated 1 GW.
In August 2023, AGR announced the construction of its first large-scale solar project in California. The company is progressing on its Vineyard Wind 1 offshore project, which is on track to deliver the first power this year. This 806 MW project is expected to start commercial operations in 2024. Such developments should bolster AGR’s position in the expanding renewable energy space.
Price Performance
In the past month, shares of AGR have lost 7.3% compared with the industry’s 11% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the same industry are Vistra Corp. (VST - Free Report) , PNM Resources Inc. (PNM - Free Report) and ALLETE Inc. (ALE - Free Report) . VST sports a Zacks Rank #1 (Strong Buy) while PNM and ALE carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vistra’s 2023 EPS is pinned at $3.54, indicating a year-over-year improvement of 220.4%. The Zacks Consensus Estimate for 2023 sales suggests an increase of 47.8% from the 2022 figure.
PNM’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for 2023 sales implies an increase of 17.2% from the 2022 figure.
ALLETE’s long-term earnings growth rate is 8.1%. The Zacks Consensus Estimate for 2023 sales indicates an increase of 23.8% from the 2022 figure.