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Reasons to Add Hawaiian Electric (HE) to Your Portfolio Now

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·3 min read
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Hawaiian Electric Industries Inc. HE, along with its subsidiaries, is engaged in electric utility, banking and renewable/sustainable infrastructure investment businesses.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for 2021 and 2022 earnings per share is pegged at $1.97 and $2.09, respectively. Estimates for 2021 and 2022 have increased 8.8% and 6.09%, respectively, in the past 30 days.

Return on equity (ROE)

ROE indicates how efficiently a company is utilizing shareholders’ funds to generate returns. At present, Hawaiian Electric’s ROE for 12 months is 9.63%, higher than the industry average of 9.41%. The company’s better ROE than the industry indicates that it is using funds more efficiently than peers in the same space.

Dividend Yield and Long-Term EPS Growth

Currently, the company has a dividend yield of 3.1%, higher than the Zacks S&P 500 Composite’s 1.3%.

The long-term earnings per share (three to five years) growth of the company is currently pegged at 7.1%.

Systematic Investments

Hawaiian Electric continues making systematic investments to provide reliable services to customers. The company intends to invest $1,085-$1,255 million between 2021 and 2023 to add new generation facilities and restore transmission & distribution asset.


The company is integrating estimated total of 165,000 private solar systems by 2030 to provide customers with clean energy.

Price Performance

In the past six months, the stock has gained 18.4% compared with the industry’s growth of 3.9%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Other Stocks to Consider

Other top-ranked stocks in the same sector include MYR Group, Inc. MYRG, NewJersey Resources Corporation NJR and UGI Corporation UGI. MYR Group currently sports a Zacks Rank#1 while NewJersey Resources and UGI carry a Zacks Rank#2.

NewJersey Resources and UGI pay regular dividends, ensuring a steady income for investors. The current dividend yield of NewJersey Resources and UGI is 3.05% & 2.8%, respectively. The return on equity of MYR Group is 16.41%, better than its sector’s average of 9.51%.

The Zacks Consensus Estimate for 2021 earnings for MYR Group has moved up 9.2% in the past 60 days. In the same time frame, fiscal 2021 earnings estimate for NewJersey Resources and UGI have moved up 19.6% and 3.5%, respectively.

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Hawaiian Electric Industries, Inc. (HE) : Free Stock Analysis Report

MYR Group, Inc. (MYRG) : Free Stock Analysis Report

UGI Corporation (UGI) : Free Stock Analysis Report

NewJersey Resources Corporation (NJR) : Free Stock Analysis Report

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