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Here's Why You Should Add PNM Resources (PNM) Stock Now

Zacks Equity Research

PNM Resources, Inc.’s PNM will benefit from its long-term investment plans, focus on renewables as well as strategies to provide reliable and affordable clean power.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) utility a promising pick for investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for 2019 earnings per share is pegged at $2.08 on $1.47-billion revenues. The bottom and the top line indicate an increase of 4% and 2.01%, respectively.

The consensus mark for 2020 earnings is pegged at $2.20 per share on revenues of $1.51 billion. The bottom line suggests a 5.93% increase and the top line calls for a 2.97% rise on a year-over-year basis.

The company’s long-term (three to five years) earnings growth is pegged at 5.50%.

Price Movement



In the past 12 months, PNM Resources’ shares have rallied 28.9% compared with the industry’s rise of 12.8%.

Long-Term Plans

The company continues to invest substantially in its utility assets to provide reliable services to its customers. It plans to invest $3.6 billion from 2019 to 2023. Moreover, PNM Resources expects rate-based compound annual growth of 9.3% during the 2018-2023 period.

PNM Resources has expertise in fulfilling environmental regulations. The company focuses on developing cost-effective power generation units to provide reliable and affordable power, while transitioning to a 100% emissions-free generating portfolio by 2040.

Earnings Surprise History & Dividend Yield

The company’s average four-quarter positive earnings surprise is 9.93%.

Currently, the company has a dividend yield of 2.29% compared with the Zacks S&P 500 composite’s 1.9%.

Other Stocks to Consider

Some other top-ranked stocks in the Utility sector are American Electric Power Company AEP, NRG Energy NRG and DTE Energy Company DTE. NRG Energy sports Zacks Rank #1, while American Electric and DTE Energy carry a Zacks Rank of 2.

American Electric Power, NRG Energy and DTE Energy delivered average positive earnings surprise of 2.96%, 11.64% and 4.32%, respectively, in the last four quarters.

The long-term earnings growth rate for American Electric Power, NRG Energy and DTE Energy is pegged at 5.66%, 36.77% and 6%, respectively.

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