Reasons to Add MYR Group (MYRG) to Your Portfolio Right Now
MYR Group Inc. MYRG is implementing targeted strategies to capture new market opportunities in the evolving clean energy landscape while continuing organic and acquisitive expansion. These make it a solid investment option in the utility sector.
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 & Surprise History
The Zacks Consensus Estimate for 2023 earnings per share has moved up 2.99% in the past 30 days to $5.18.
MYR Group’s past four-quarter earnings surprise average is 5.19%.
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 14.98%, higher than the sector average of 5.87%. This indicates that MYR Group has been utilizing the funds more constructively than the other operators in the sector.
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. As of Sep 30, 2022, the company utilized $33.4 million of its previous share repurchase authorization of $75 million and repurchased mainly 0.4 million shares.
Debt Position & Liquidity
The company’s total debt to capital ratio is 14.33 compared with its sector average of 57.87. 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 1.43, which indicates that the company has enough liquidity to meet its short-term debt obligation.
Price Performance
Over the last six months, the MYR Group stock has returned 15.6%, outperforming the sector average of 1.5%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the Zacks utility sector are Atmos Energy ATO, CMS Energy CMS and CenterPoint Energy CNP, each holding a Zacks Rank #2 at present.
Atmos Energy, CMS Energy, and CenterPoint Energy have an average surprise earnings of 4.87%, 6.66%, and 7%, respectively, for the last four quarters.
The Zacks Consensus Estimate for 2023 earnings per share for CMS Energy and CenterPoint Energy are likely to improve 8.17% and 7.19%, respectively, year over year. Atmos Energy’s fiscal 2023 estimates are likely to improve 6.61%.
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CMS Energy Corporation (CMS) : 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
