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

Zacks Equity Research
·3 mins read

MGE Energy Inc.’s MGEE strong fundamentals and a solid financial position along with upward estimate revisions make it a good investment choice.

Zacks Rank & Price Performance

MGE Energy currently carries a Zacks Rank #2 (Buy). In the past month, the stock has gained 0.9% against the industry’s decline of 1.9%.

Growth Projections

The Zacks Consensus Estimate for 2020 and 2021 earnings is pegged at $2.52 and $2.68 per share, respectively. While the 2020 bottom line suggests an increase of 0.40%, the same for 2021 indicates a 6.35% rise from the respective year-earlier reported numbers.

Surprise History & Long-Term Earnings Growth

MGE Energy delivered an earnings surprise of 10.42% for second-quarter 2020.

Its long-term (three to five years) earnings growth rate is currently projected at 4.38%.

Financial Position

MGE Energy’s total debt to total capital is 36.17%, comparing favorably with the industry’s 59.58%. Its times interest earned (TIE) also ratio improved to 5.72 at the end of the second quarter from 5.60 at the end of the first 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 10.44%, comparing favorably with the industry’s 8.09%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than its peers.

Other Stocks to Consider

A few other top-ranked utilities are American States Water Company AWR, Alliant Energy Corporation LNT and Energias de Portugal EDPFY, all stocks carrying the same Zacks Rank as MGE Energy at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American States Water Company has a long-term earnings growth rate of 4.90%. The company delivered an earnings surprise of 0.15%, on average, in the last four quarters.

Alliant Energy has a long-term earnings growth rate of 5.54%. The company delivered an earnings surprise of 30.91%, on average, in the trailing four quarters.

Energias de Portugal has a long-term earnings growth rate of 5.66%. The Zacks Consensus Estimate for 2020 earnings has moved 3.5% north in the past 60 days.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

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
Energias de Portugal (EDPFY) : Free Stock Analysis Report
American States Water Company (AWR) : Free Stock Analysis Report
Alliant Energy Corporation (LNT) : Free Stock Analysis Report
MGE Energy Inc. (MGEE) : Free Stock Analysis Report
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Zacks Investment Research