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Reasons to Add Avangrid Stock to Your Portfolio Right Now
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Avangrid Inc.’s (AGR - Free Report) strategic capital expenditure plans should further assist in upgrading its infrastructure and facilities. The company is expanding its clean energy generation capacity, which should boost its performance. Given its growth opportunities, AGR makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) company a strong investment pick at the moment.
AGR’s Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 4.5% in the past 60 days to $2.34.
The Zacks Consensus Estimate for revenues is pinned at $8.53 billion, indicating a year-over-year increase of 2.7%.
The company’s long-term (three to five-year) earnings growth rate is 6%. It delivered an average earnings surprise of 43.8% in the past four quarters.
Debt Position of AGR
Currently, Avangrid’s total debt to capital is 37.59%, better than the industry’s average of 60.03%.
The time to interest earned ratio at the end of third-quarter 2024 was 3.2. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
AGR’s Dividend History
The utility company has been consistently increasing shareholder value by paying dividends. Currently, its quarterly dividend is 44 cents per share, resulting in an annualized dividend of $1.76. The company’s current dividend yield is 4.87%, better than the Zacks S&P 500 composite’s 1.2%.
AGR’s Systematic Investments
Avangrid has long-term investment plans to further upgrade its infrastructure. It consistently spends capital to maintain and upgrade its infrastructure and facilities. In the first nine months of 2024, the company invested nearly $2.85 billion, up 37.3% from the year-ago period’s figure and expects to incur nearly $1.3 billion in capital expenditures through the remainder of 2024.
AGR’s Focus on Clean Power Generation
The company is expanding its clean energy generation capacity and adding more wind and solar sources to its portfolio, which should enhance its earnings performance.
Renewables reached 9 gigawatts (GW) of installed capacity. With a portfolio of more than 75 projects in 22 states, Avangrid now has more than 8 GW of installed wind capacity and around 1 GW of installed solar, including projects currently under construction. This includes 472 megawatts (MW) of renegotiated power purchase agreement (PPA) and 526 MW of new PPA signed in 2023. Nearly 700 MW of these projects are to support data centers with clean energy from onshore wind and solar.
AGR’s Stock Price Performance
In the past month, shares of AGR have risen 1% compared with the industry’s growth of 0.3%.
VST’s long-term earnings growth rate is 17.4%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $4.96, indicating year-over-year growth of 38.2%.
NiSource’s long-term earnings growth rate is 6.95%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $1.73, indicating a year-over-year improvement of 8.1%.
AEE’s long-term earnings growth rate is 6.59%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $4.61, indicating a year-over-year increase of 5.3%.
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Reasons to Add Avangrid Stock to Your Portfolio Right Now
Avangrid Inc.’s (AGR - Free Report) strategic capital expenditure plans should further assist in upgrading its infrastructure and facilities. The company is expanding its clean energy generation capacity, which should boost its performance. Given its growth opportunities, AGR makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this currently Zacks Rank #2 (Buy) company a strong investment pick at the moment.
AGR’s Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 4.5% in the past 60 days to $2.34.
The Zacks Consensus Estimate for revenues is pinned at $8.53 billion, indicating a year-over-year increase of 2.7%.
The company’s long-term (three to five-year) earnings growth rate is 6%. It delivered an average earnings surprise of 43.8% in the past four quarters.
Debt Position of AGR
Currently, Avangrid’s total debt to capital is 37.59%, better than the industry’s average of 60.03%.
The time to interest earned ratio at the end of third-quarter 2024 was 3.2. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
AGR’s Dividend History
The utility company has been consistently increasing shareholder value by paying dividends. Currently, its quarterly dividend is 44 cents per share, resulting in an annualized dividend of $1.76. The company’s current dividend yield is 4.87%, better than the Zacks S&P 500 composite’s 1.2%.
AGR’s Systematic Investments
Avangrid has long-term investment plans to further upgrade its infrastructure. It consistently spends capital to maintain and upgrade its infrastructure and facilities. In the first nine months of 2024, the company invested nearly $2.85 billion, up 37.3% from the year-ago period’s figure and expects to incur nearly $1.3 billion in capital expenditures through the remainder of 2024.
AGR’s Focus on Clean Power Generation
The company is expanding its clean energy generation capacity and adding more wind and solar sources to its portfolio, which should enhance its earnings performance.
Renewables reached 9 gigawatts (GW) of installed capacity. With a portfolio of more than 75 projects in 22 states, Avangrid now has more than 8 GW of installed wind capacity and around 1 GW of installed solar, including projects currently under construction. This includes 472 megawatts (MW) of renegotiated power purchase agreement (PPA) and 526 MW of new PPA signed in 2023. Nearly 700 MW of these projects are to support data centers with clean energy from onshore wind and solar.
AGR’s Stock Price Performance
In the past month, shares of AGR have risen 1% compared with the industry’s growth of 0.3%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Vistra Corp. (VST - Free Report) , which sports a Zacks Rank #1 (Strong Buy) at present, and NiSource Inc. (NI - Free Report) and Ameren Corporation (AEE - Free Report) , both holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
VST’s long-term earnings growth rate is 17.4%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $4.96, indicating year-over-year growth of 38.2%.
NiSource’s long-term earnings growth rate is 6.95%. The Zacks Consensus Estimate for the company’s 2024 EPS is pegged at $1.73, indicating a year-over-year improvement of 8.1%.
AEE’s long-term earnings growth rate is 6.59%. The Zacks Consensus Estimate for the company’s 2024 EPS is pinned at $4.61, indicating a year-over-year increase of 5.3%.