Pattern Energy Scales 52-Week High on Steady Results
Renewable energy leader, Pattern Energy Group Inc. PEGI touched a new 52-week high of $25.42, eventually closing a tad lower at $25.07 on Jun 27. The stock has delivered a one-year return of about 22% compared with the Zacks categorized Utility - Electric Power industry’s gain of 1%.
In the last 52 weeks, Pattern Energy‘s share price has ranged from a low of $18.68 to a high of $25.42. Average volume of shares traded in the last three months is approximately 788.75 thousand.
Why is Pattern Energy on the Rise?
Pattern Energy Group has been a steady performer, having delivered an average surprise of 77.28% in the trailing four quarters. Thanks to its solid performance, the company has increased quarterly dividend in 13 consecutive times including the current quarter. The long-term earnings growth is currently pegged at 12%.
At present the company has owned generation capacity of 2.6 GW, which it is going to increase to nearly 5 GW at the end of 2020, through systematic capital infusion.
Apart from organic growth, the company acquired some assets at the beginning of the second quarter and plans to add more assets to its existing portfolio using its Right of First Offer on a pipeline. The company has already acquired 2,156 MW of assets from Pattern Development Companies using its right of first offer.
At present, the company operates nearly 20 wind power facilities, 89% of the electricity to be generated by its facilities will be sold under long-term, fixed-price power sale agreement, which gives a clear visibility of its earnings stream.
Additionally, the new investment plans and likely acquisitions will further boost future growth prospects.
Other Key Picks
Pattern Energy currently sports a Zacks Rank #1 (Strong Buy). Investors can consider other top-ranked stock from the same industry like NextEra Energy, Inc. NEE, Algonquin Power & Utilities Corp. AQN and CenterPoint Energy, Inc. CNP All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NextEra Energy delivered a positive earnings surprise of 12.18% in first-quarter 2017. Its 2017 estimates have risen by 0.60% to $6.66 per share in the last 60 days.
Algonquin Power & Utilities pulled off a positive earnings surprise of 11.76% in first-quarter 2017. Its 2017 estimates have risen by 2.08% to 49 cents per share in the last 90 days.
CenterPoint Energy delivered a positive earnings surprise of 2.78% in first-quarter 2017. Its second quarter 2017 estimates have risen by 5.26% to 20 cents per share in the last 90 days.
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