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5 Reasons to Add Spark Energy (SPKE) to Your Portfolio Now

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Earnings estimates for Spark Energy have been revised upward over the past 60 days, reflecting analysts’ optimism surrounding the stock. The current Zacks Consensus Estimate for 2019 earnings is 27 cents, up from the earlier estimate of a loss of 69 cents per share.

Spark Energy is an independent energy services provider that supplies electricity and natural gas to customers in 19 states.
 
Let’s focus on the factors that make Spark Energy a good investment option at the moment.

Price Performance

In the past 12 months, shares of Spark Energy have gained 22.1% compared with its industry’s 7.5% growth.



Earnings Surprise Trend & Estimate Revision

Spark Energy beat estimates in the last two quarters, with the average positive surprise being 1,875%. Its earnings estimates for 2019 have moved up 139.1% in the past 60 days to 27 cents per share.

Return on Equity (ROE) and Debt to Capital
 
Spark Energy’s ROE of 23.6%, compared with the industry average of 9.5%, indicates the company’s efficiency in utilizing its shareholders’ funds.

The company’s debt-to-capital ratio at the end of third-quarter 2019 was 41.5%, lower than the industry average of 51.4%.

Zacks Rank & VGM Score

Spark Energy currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

If you are familiar with the Zacks Style Scores, then it will be easy to understand the VGM Score. V stands for Value, G for Growth and M for Momentum. The VGM Score is simply a weighted combination of those scores. The VGM Score highlights the determining elements in a stock that can push the stock price higher.

At present, Spark Energy carries a VGM Score of A.

Dividend Yield

The current dividend yield of the company is 7%, better than its industry’s average of 3%.

Other Key Picks

In addition to Spark Energy, investors can consider NRG Energy (NRG - Free Report) , The AES Corporation (AES - Free Report) and PNM Resources Inc. . While NRG Energy sports a Zacks Rank #1, the other two stocks carry a Zacks Rank #2 (Buy).

NRG Energy, AES Corp. and PNM Resources’ long-term (three to five years) earnings are expected to improve 39.4%, 8.5% and 5.6%, respectively.

Earnings estimates for 2019 for NRG Energy, AES Corp. and PNM Resources have moved up 101.2%, 8.1% and 5% year over year, respectively.

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