U.S. Markets closed

Reasons to Add MDU Resources (MDU) to Your Portfolio Now

Zacks Equity Research

MDU Resources’ MDU two-platform business model, strategic acquisitions, planned investments in the electric and natural gas utility, rising backlog and ongoing projects are tailwinds.

Let’s focus on the factors that make this company an appropriate investment option at the moment.

Zacks Rank and VGM Score

MDU Resources currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Our proprietary VGM Score is based on research that has proven that stocks with the best value, growth and momentum characteristics outperform the market. V stands for Value, G for Growth and M for Momentum. MDU Resources has a VGM Score of B.

Growth Projections & Price Performance

The consensus mark for 2020 earnings is pegged at $1.70 per share, which suggests a 6.25% rise on a year-over-year basis. The company’s long-term (3 to 5 years) earnings growth rate is pegged at 7.10%.

 

Shares of MDU Resources have gained 18.6% in the past 12 months compared with the industry’s 16% growth.

Dividend Yield

MDU Resources has been paying out dividend since the past 82 consecutive years. It also raised annual dividend on November 2019, making it 29 consecutive years of hikes. Currently, the company’s dividend yield of 2.88% is better than Zacks S&P 500 composite’s 1.8% and the industry’s 2.83%.

Capital Investment

MDU Resources recently made announcements to provide capital expenditure forecast for 2020 through 2024. The company expects to invest $2.9 billion during the 2020-2024 period. The latest capex plan includes 8.6% hike from the previous plan of $2.6 billion for 2019-2023 period.

Other Key Picks

Some other top-ranked stocks from the same sector are The AES Corporation AES, Sempra Energy SRE and Entergy Corporation ETR. The AES Corporation currently sports a Zacks Rank #1, while the other two stocks carry a Zack Rank of 2.

The AES Corporation, Sempra Energy and Entergy delivered an average positive earnings surprise of 4.68%, 3.21% and 4.79%, respectively, in the last four quarters.

The long-term earnings growth rates for The AES Corporation, Sempra Energy and Entergy are pegged at 9.11%, 7.73% and 7%, respectively.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q3 2019, while the S&P 500 gained +39.6%, five of our strategies returned +51.8%, +57.5%, +96.9%, +119.0%, and even +158.9%.

This outperformance has not just been a recent phenomenon. From 2000 – Q3 2019, while the S&P averaged +5.6% per year, our top strategies averaged up to +54.1% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Entergy Corporation (ETR) : Free Stock Analysis Report
 
The AES Corporation (AES) : Free Stock Analysis Report
 
MDU Resources Group, Inc. (MDU) : Free Stock Analysis Report
 
Sempra Energy (SRE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research