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Here's Why You Should Add DTE Energy (DTE) to Your Portfolio

Zacks Equity Research

Earnings estimates for DTE Energy Company DTE have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings has moved up 0.3% and 0.6% to $6.20 and $6.55 per share, respectively.

Let’s focus on the factors that make the stockan appropriate pick at the moment.

Zacks Rank & VGM Score

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.

Earnings Surprise History &Dividend Yield

The company’s average four-quarter positive earnings surprise is 12.24%.Currently, the company has a dividend yield of 2.93% compared with the Zacks S&P 500 Composite’s 1.99% and industry’s 2.82%.

Long-Term Growth & Price Performance

The company’s long-term (3 to 5 years) earnings growth is pegged at 6%.

In the past 12 months, shares of DTE Energy have rallied 33.1% compared with the industry’s rise of 20.8%.

Investment Plans

DTE Energy follows a disciplined capital spending program to maintain and upgrade the reliability of its electric utility systems. DTE Electric currently expects to make capital investments of $11.3 billion over the 2019-2023 period. DTE Gas’ total capital investments over the 2019-2023 period are estimated at $2.5 billion. The company plans to accelerate more than $450 million of main renewal capital over the next five years.

Other Key Picks

Some other top-ranked stocks from the same industry are IDACORP, Inc IDA, FirstEnergy Corporation FE and Black Hills Corporation BKH, each holding a Zacks Rank of 2.

IDACORP pulled off an average positive earnings surprise of 13.83% in the last four quarters. The company’s long-term earnings growth is pegged at 3.80%

FirstEnergy pulled off an average positive earnings surprise of 5.09% in the last four quarters. The company’s long-term earnings growth is pegged at 6%.

Black Hills delivered an average positive earnings surprise of 5.69% in the last four quarters. The company’s long-term earnings growth is pegged at 4.80%

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