Here's Why You Should Buy Algonquin Power & Utilities Now
Algonquin Power & Utilities Corp.’s AQN strategic acquisitions to expand its utility footprints and long-term capex program will act as growth catalysts.
Let’s focus on the factors that make Algonquin Power & Utilities an appropriate investment option at the moment.
Zacks Rank & Price Performance
Algonquin Power & Utilities currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 12 months, the company’s shares have gained 13.9%, as against the industry’s decline of 6.7%.
Growth Projections
The Zacks Consensus Estimate for 2020 earnings is pegged at 66 cents per share on revenues of $1.77 billion. This indicates a 4.76% and 8.65% increase of the bottom and the top line, respectively, from the year-ago period’s reported figures.
The company’s long-term (three to five years) earnings growth rate is pegged at 8.60%.
Dividend Yield
Currently, the company has a dividend yield of 4.19% compared with the S&P 500 composite’s 2.09% and the industry’s 3.60%.
Investments
The company is aimed at boosting its business and committed in making solid investments. It plans to make $9.2 billion of capital investments in the next five years. These investments are expected to boost the company’s earnings in the days to come.
Other Stocks to Consider
Some other top-ranked stocks from the same sector are Southwest Gas Corporation SWX, Sempra Energy SRE and NextEra Energy, Inc. NEE. All three stocks hold a Zacks Rank #2, currently.
The long-term earnings growth rate of Southwest Gas, Sempra Energy and NextEra Energy is pegged at 6%, 6.90% and 7.70%, respectively.
Southwest Gas, Sempra Energy and NextEra Energy delivered a positive earnings surprise of 3.92%, 32.76% and 7.69%, respectively, in the last reported quarter.
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Sempra Energy (SRE) : Free Stock Analysis Report
Southwest Gas Corporation (SWX) : Free Stock Analysis Report
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Algonquin Power Utilities Corp. (AQN) : Free Stock Analysis Report
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