Four Utility Stocks Set to Outpace Earnings Estimates in Q4

Four Utility Stocks Set to Outpace Earnings Estimates in Q4

the use of new technologies, which enable them to maintain transmission and distribution lines. Gradual introduction of smart meters in their service territories and setting up of large battery storage units are actually helping utilities to provide 24X7 services to customers.

Interest rates hike has been a concern for these capital intensive sectors. Nevertheless, the Fed lowered interest rates thrice since July 2019, which allowed these utilities to refinance old debts and issue new debts at lower rates, allowing them to stick with the much needed infrastructure additions and maintenance. The interest rate cuts were a nice change for utilities, positively impacting margins.

A gradual transition is seen in the utility space, as increasing number of companies operating in the utility sector are actually announcing plans to lower carbon emissions from their production portfolio. Utilities are gradually moving away from coal, and concentrating on gas that is natural and other renewable sources to make power.

Use of electrical energy in transportation, lower unemployment rates, and improvement in homebuilding and residential markets will go on to drive demand for services that are essential that the utilities provide.

Ways to Pick Winners in the Utility Space

Deciding on the best stock for one’s portfolio from too many participants is definitely a tough job. A simple way to streamline the list is actually by selecting stocks with a good Earnings ESP and a Zacks Rank #1 (Strong Buy), two (Buy) or perhaps three (Hold).

Per our proprietary methodology, Earnings ESP is actually a determining factor for zeroing in on stocks with maximum chances of beating on earnings in the following announcement. It shows the percentage difference between probably the Most Accurate Estimate and also the Zacks Consensus Estimate.

Remember to check our Earnings ESP Filter that allows you to come across stocks with the potential to outshine earnings estimates this reporting cycle.

Our research shows that stocks with the ideal mixture of the 2 key ingredients have seventy % chances of delivering a positive earnings surprise.

For investors seeking to use this proven model to the portfolio of theirs, we’ve highlighted 4 Utility stocks that are actually poised to beat fourth quarter earnings estimates in the upcoming releases.

The Picks of ours

St. Louis, MO based Ameren Corporation AEE is actually a utility company that generates and distributes natural gas and electrical energy to residential, commercial, wholesale and industrial end markets in Illinois and Missouri.

Ameren has a Zacks Rank #3 and an Earnings ESP of 2.73 %. You are able to view the complete list of today’s Zacks #1 Rank stocks here.

It’s slated to announce quarterly numbers on Feb twenty six.

Ameren Corporation Price and EPS Surprise

Ameren Corporation Price and EPS Surprise

Ameren Corporation price-eps-surprise|Ameren Corporation Quote

Houston, TX based CenterPoint Energy Inc. CNP is actually a domestic energy delivery company which provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations.

CenterPoint Energy has a Zacks Rank #3 and an Earnings ESP of 1.09 %.

The company is actually set to announce quarterly results on Feb twenty seven.

CenterPoint Energy, Inc. Price and EPS Surprise Abu Dhabi hotels

CenterPoint Energy, Inc. Price and EPS Surprise

CenterPoint Energy, Inc. price-eps-surprise|CenterPoint Energy, Inc. Quote

Arlington, VA based The AES Corporation AES is actually a global energy company.

AES Corp has a Zacks Rank #3 and an Earnings ESP of 0.76 %.

It’s slated to announce quarterly results on Feb twenty eight.

The AES Corporation Price and EPS Surprise

The AES Corporation Price and EPS Surprise

The AES Corporation price-eps-surprise|The AES Corporation Quote

 Pattern Energy Group Inc. PEGI, based in San Francisco, CA, is actually an independent power company focused on production of electrical energy from renewable sources.

Pattern Energy Group has a Zacks Rank #3 and an Earnings ESP of 457.14 %.

It’s slated to announce quarterly numbers on Mar six.

Pattern Energy Group Inc. Price and EPS Surprise

Pattern Energy Group Inc. Price and EPS Surprise

Pattern Energy Group Inc. price-eps-surprise|Pattern Energy Group Inc. Quote

Seven Best Stocks for the Next thirty Days

Just released: Experts distill seven elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.7 % per year. So make sure you give these hand picked seven the immediate attention of yours.

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