Earnings estimates for Hawaiian Electric Industries, Inc. HE for 2019 and 2020 have moved up 4.86% and 7.05% on a year-over-year basis to $1.94 and $2.08 per share, respectively.
Let’s discuss the factors that make the stock an appropriate investment option at the moment.
Zacks Rank & Earnings Surprise History
Hawaiian Electric currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s average four-quarter positive earnings surprise is 0.05%.
In the past 12 months, Hawaiian Electric’s shares have rallied 25.2% compared with the industry’s rise of 12.4%.
Long-Term Growth & Dividend Yield
The company’s long-term (three to five years) earnings growth is pegged at 5.60%.
Currently, the company has a dividend yield of 2.93% compared with the industry’s 2.79% and Zacks S&P 500 composite’s 1.92%.
Hawaiian Electric continues to undertake systematic investments in utility infrastructure development projects. The company consistently adds new generation facilities, replaces aging infrastructure as well as restores transmission and distribution assets. For 2019, the company plans to invest approximately $400 million in the utility. In the 2020-2021 period, the company plans to invest in the range of $400-$500 million annually. These initiatives will increase service quality as well as reliability and enable the company to witness a CAGR of 5-7% during the said period.
Other Key Picks
Some other top-ranked stocks from the same industry are DTE Energy Company DTE, PNM Resources, Inc PNM and Black Hills Corporation BKH, each holding a Zacks Rank of 2.
DTE Energy pulled off an average positive earnings surprise of 12.24% in the last four quarters. The company’s long-term earnings growth is pegged at 6%.
PNM Resources pulled off an average positive earnings surprise of 15.75% in the last four quarters. The company’s long-term earnings growth is pegged at 5.20%.
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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