Reasons to Add MYR Group (MYRG) to Your Portfolio Right Now
MYR Group Inc. MYRG continues to expand its operation through organic and inorganic methods. The company, along with its subsidiaries, delivered some of the largest and most notable electrical infrastructures as well as commercial and industrial projects throughout the United States and Canada.
Let’s focus on the factors that make this Zacks Rank #1 (Strong Buy) stock a solid investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2023 and 2024 earnings per share has moved up 8.10% and 8%, respectively, in the past 60 days.
MYR Group’s past four-quarter earnings surprise average is 13.2%.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, MYRG’s ROE is 15.42%, higher than the sector average of 5.8%. This indicates that MYR Group has been utilizing the funds more constructively than the other operators in the sector.
Debt Position & Liquidity
The company’s total debt to capital ratio is 6.75 compared with its industry average of 7.28 in the past twelve months. This indicates that it is managing the business far more efficiently than other operators in the sector.
Moreover, the current ratio of the company is 1.34, which indicates that the company has enough liquidity to meet its short-term debt obligations.
Repurchase Program
MYR Group continues to increase shareholders’ value through systematic share repurchases. On Nov 2, MYRG’s management approved a new share purchase program of $75 million, which will expire on May 8, 2023. The company will fund the repurchase from cash on hand and through borrowings under its credit facility.
Price Performance
Over the last five years, MYR Group stock has gained steadily, with a marginal dip in price during the COVID-19 period.
MYR Group, Inc. Price
MYR Group, Inc. price | MYR Group, Inc. Quote
Other Stocks to Consider
A few other top-ranked stocks in the Zacks utility sector are Atmos Energy ATO, NextEra Energy NEE and CenterPoint Energy CNP, each holding a Zacks Rank #2 (Buy) at present.
Atmos Energy, NextEra Energy and CenterPoint Energy have average surprise earnings of 4.61%, 6.2% and 2.1%, respectively, for the last four quarters.
The Zacks Consensus Estimate for 2023 earnings per share for NextEra Energy and CenterPoint Energy is likely to improve 7.59% and 7.97%, respectively, year over year. Atmos Energy’s fiscal 2023 estimates are showing a year-over-year improvement of 7.14%.
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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
MYR Group, Inc. (MYRG) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
