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Here’s Why You Should Invest in Avangrid (AGR) Stock Now

Zacks

Avangrid, Inc.’s AGR long-term capital investments and upcoming renewables projects are expected to boost earnings.

Let’s take a look at the factors that are driving this Zacks Rank #2 (Buy) utility company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $2.22 per share on revenues of $6.47 billion. While the bottom line suggests 2.30% increase, the top line calls for a 2.09% rise on a year-over-year basis.


The consensus mark for 2021 earnings is pegged at $2.41 per share on revenues of $6.70 billion. While the bottom line suggests 8.41% increase, the top line calls for a 3.53% rise on a year-over-year basis.

Long-Term Growth & Price Performance

The company’s long-term (three to five years) earnings growth is pegged at 5.50%.

On a long-term basis, shares of the company have outperformed the industry. In the past five years, shares of Avangrid have surged 32.1% compared with the industry’s growth of 5.8%.

Debt/Capital & Dividend Yield

The company’s current debt-to-capital ratio is pegged at 32.08%, lower than the industry’s 57.59% and Zacks S&P 500 composite’s 49.04%.

Currently, the company has a dividend yield of 4% compared with the industry’s 3.65% and Zacks S&P 500 composite’s 1.84%.

Infrastructural Investments

For the first three months ended Mar 31, 2020, the company’s net cash used in investing activities was $749 million compared with $526 million in year-ago quarter. It expects to incur nearly $1.9 billion in capital expenditures through the remainder of 2020.At Mar 31, 2020, available liquidity was approximately $2,293 million.

Stocks to Consider

A few better-ranked stocks from the same sectorare Southwest Gas Corporation SWX, Sempra Energy SRE and NextEra Energy, Inc. NEE. All three stocks hold a Zacks Rank #2 (Buy) at present.

The long-term earnings growth rate of Southwest Gas, Sempra Energy and NextEra Energy is pegged at 6%, 6.90% and 7.70%, respectively.

Southwest Gas, Sempra Energy and NextEra Energy reported positive earnings surprise of 3.92%, 32.76% and 7.69%, respectively, in the last reported quarter.

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