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Why You Should Add MGE Energy (MGEE) to Your Portfolio Now

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Zacks Equity Research
·2 min read
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MGE Energy Inc.’s MGEE strong fundamentals and a solid financial position with favorable growth estimates make it a good investment choice.

Zacks Rank & Price Performance

MGE Energy currently carries a Zacks Rank #2 (Buy). In the past three months, the stock has gained 1.9% against the industry’s decline of 0.1%.

Growth Projections

The Zacks Consensus Estimate for 2021 earnings and revenues is pegged at $2.87 per share and $582 million each, suggesting a respective increase of 7.09% and 5.54% year over year.

Surprise History & Long-Term Earnings Growth

MGE Energy delivered an earnings surprise of 4.65%, on average, in the last four quarters.

Its long-term (three to five years) earnings growth rate is currently projected at 4.85%.

Financial Position

MGE Energy’s total debt to total capital is 35.68%, comparing favorably with the industry’s 55.78%. Its times interest earned (TIE) ratio also improved to 5.77 at the end of the third quarter of 2020 from 5.72 at the end of the second quarter. This strong TIE ratio reflects the company’s ability to meet its debt obligations in the near future.

Return on Equity (ROE)

The company’s ROE for the trailing 12 months is 10.21%, comparing favorably with the industry’s 8.51%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than its peers.

Other Stocks to Consider

A few other top-ranked stocks from the same sector are E.ON SE EONGY, CenterPoint Energy, Inc. CNP and Alliant Energy Corporation LNT, all presently carrying the same Zacks Rank as MGE Energy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term (three-five years) earnings growth rate of E.ON SE, CenterPoint Energy and Alliant Energy is pegged at 6.5%, 5% and 6%, respectively.

E.ON SE, CenterPoint Energy and Alliant Energy delivered an earnings surprise of 11.1%, 13.2% and 18.3%, respectively, on average, in the trailing four quarters.

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CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
 
Alliant Energy Corporation (LNT) : Free Stock Analysis Report
 
MGE Energy Inc. (MGEE) : Free Stock Analysis Report
 
E.ON SE (EONGY) : Free Stock Analysis Report
 
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Zacks Investment Research