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Reasons to Add National Grid Stock to Your Portfolio Right Now
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National Grid Transco’s (NGG - Free Report) strategic investment plans are likely to further expand its operations and boost its performance. Given its growth opportunities, the company makes for a solid investment option in the Utility sector.
The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections for NGG
The Zacks Consensus Estimate for NGG’s 2025 earnings per share (EPS) is pegged at $4.86, which indicates year-over-year growth of 6.2%.
The consensus estimate for 2025 sales is pegged at $17.69 billion, which indicates year-over-year growth of 4.6%.
NGG’s long-term (three to five years) earnings growth rate is 2.40%.
NGG Stock’s Dividend Yield
NGG distributes dividends to its shareholders on a regular basis. Its current dividend yield is 7.14%, which is better than the industry’s average of 3.37%.
Emission Reduction Efforts of NGG
NGG is committed to maintaining its focus on consumers' and stakeholders’ priorities. It aims to achieve net zero scope one and two emissions by 2050, with interim targets of a 50% reduction by 2030 and 34% by 2026 from the 2018/19 baseline.
National Grid also aims to achieve a 100% alternative fuel fleet by 2030 and 100% renewable electricity for its use, with a 20% increase in energy efficiency for its offices by 2026.
NGG’s Systematic Investments
NGG plans to invest more than $52 billion by 2026 in the United Kingdom and the United States per its five-year spending framework. The company has increased its investment in 17 major onshore and offshore transmission projects in the United Kingdom after the energy regulator Ofgem fast-tracked the same.
NGG is also planning to invest more than $4 billion in transmission enhancement to modernize its energy delivery network across upstate New York.
NGG Stock’s Price Performance
Shares of NGG have gained 23.4% in the past three months compared with the industry’s 9.9% growth.
AES delivered an average earnings surprise of 19.18% in the trailing four quarters. The Zacks Consensus Estimate for AES’ 2024 earnings indicates year-over-year growth of 8.5%.
TransAlta delivered an average earnings surprise of 97.99% in the trailing four quarters. The consensus estimate for TAC’s 2024 earnings has increased 4.2% in the past 60 days.
NiSource delivered an average earnings surprise of 20.64% in the past four quarters. The Zacks Consensus Estimate for NI’s 2024 earnings indicates year-over-year growth of 7.5%.
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Reasons to Add National Grid Stock to Your Portfolio Right Now
National Grid Transco’s (NGG - Free Report) strategic investment plans are likely to further expand its operations and boost its performance. Given its growth opportunities, the company makes for a solid investment option in the Utility sector.
The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections for NGG
The Zacks Consensus Estimate for NGG’s 2025 earnings per share (EPS) is pegged at $4.86, which indicates year-over-year growth of 6.2%.
The consensus estimate for 2025 sales is pegged at $17.69 billion, which indicates year-over-year growth of 4.6%.
NGG’s long-term (three to five years) earnings growth rate is 2.40%.
NGG Stock’s Dividend Yield
NGG distributes dividends to its shareholders on a regular basis. Its current dividend yield is 7.14%, which is better than the industry’s average of 3.37%.
Emission Reduction Efforts of NGG
NGG is committed to maintaining its focus on consumers' and stakeholders’ priorities. It aims to achieve net zero scope one and two emissions by 2050, with interim targets of a 50% reduction by 2030 and 34% by 2026 from the 2018/19 baseline.
National Grid also aims to achieve a 100% alternative fuel fleet by 2030 and 100% renewable electricity for its use, with a 20% increase in energy efficiency for its offices by 2026.
NGG’s Systematic Investments
NGG plans to invest more than $52 billion by 2026 in the United Kingdom and the United States per its five-year spending framework. The company has increased its investment in 17 major onshore and offshore transmission projects in the United Kingdom after the energy regulator Ofgem fast-tracked the same.
NGG is also planning to invest more than $4 billion in transmission enhancement to modernize its energy delivery network across upstate New York.
NGG Stock’s Price Performance
Shares of NGG have gained 23.4% in the past three months compared with the industry’s 9.9% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked companies in the same industry are The AES Corporation (AES - Free Report) , TransAlta Corporation (TAC - Free Report) and NiSource Inc. (NI - Free Report) , each currently carrying a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AES delivered an average earnings surprise of 19.18% in the trailing four quarters. The Zacks Consensus Estimate for AES’ 2024 earnings indicates year-over-year growth of 8.5%.
TransAlta delivered an average earnings surprise of 97.99% in the trailing four quarters. The consensus estimate for TAC’s 2024 earnings has increased 4.2% in the past 60 days.
NiSource delivered an average earnings surprise of 20.64% in the past four quarters. The Zacks Consensus Estimate for NI’s 2024 earnings indicates year-over-year growth of 7.5%.