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Reasons to Add Algonquin Power & Utilities to Your Portfolio

Zacks Equity Research

Earnings estimates for Algonquin Power & Utilities Corp. AQN have been revised upward in the past 60 days, reflecting analysts’ optimism on the stock. The Zacks Consensus Estimate for 2019 and 2020 earnings moved up a respective 6.5% and 1.5% to 66 cents (for both periods).

Algonquin Power & Utilities, through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution as well as transmission utility assets in Canada and the United States.

Let’s focus on the factors that make Algonquin Power & Utilities an appropriate investment option at the moment.

Price Performance

In the past 12 months, Algonquin Power & Utilities’ shares have gained 14.7% compared with the industry’s rise of 14.5%.


Earnings & Surprise History

Algonquin Power & Utilities delivered operating earnings of 14 cents per share in fourth-quarter 2018, which beat the Zacks Consensus Estimate by a penny. The company’s average four-quarter positive earnings surprise is 22.48%.

Return on Equity (ROE)

Algonquin Power & Utilities has an ROE of 9.35%, which is higher than the industry’s average of 9.27%. This reflects the company’s efficiency to utilize shareholders’ funds.

Long-Term Growth & Dividend Yield

The company’s long-term (three to five years) earnings growth is pegged at 10.38%.

Currently, the company has a dividend yield of 4.51% compared with the Zacks S&P 500 Composite’s 1.97% and the industry’s 2.82%.

Zacks Rank & Other Key Picks

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.

Some other top-ranked stocks from the same industry are IDACORP, Inc IDA, The Southern Company SO and NextEra Energy, Inc NEE. All the stocks carry a Zacks Rank of 2.

IDACORP pulled off an average positive earnings surprise of 9.60% in the last four quarters. The company’s long-term earnings growth is pegged at 3.90%

NextEra Energy pulled off an average positive earnings surprise of 2.52% in the last four quarters. The company’s long-term earnings growth is pegged at 7.70%

The Southern Company delivered an average positive earnings surprise of 7.85% in the last four quarters. The company’s long-term earnings growth is pegged at 4.50%

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