Zacks Investment Research upgraded Black Hills Corporation (NYSE:BKH) to a Zacks Rank #1 (Strong Buy) on Jun 28, 2016. Going by the Zacks model, companies sporting a Zacks Rank #1 have strong chances of outperforming the broader market over the next few quarters.
Why the Upgrade?
Black Hills Corporation’s financial performance in the past few quarters have been impressive, with an average positive earnings surprise of 25.67%. Also, the company’s share price has increased roughly 35.3% year to date and 4.1% since its first-quarter 2016 earnings release on May 3. Last quarter, Black Hills Corporation’s earnings of $1.23 per share exceeded the Zacks Consensus Estimate of 95 cents by 29.47%.
The company projects earnings per share to be $2.90−$3.10 for 2016 and $3.35−$3.65 for 2017. The company expects to benefit from its SourceGas acquisition through expanded natural gas utility customers and natural gas pipeline system. Also, Black Hills Corporation is investing to increase its business activities in large projects including the 60-megawatt Peak View Wind Project; a 40-megawatt, natural gas-fired turbine, and the construction of a 144-mile transmission line.
Impressive first-quarter results as well as an upbeat outlook boosted investors’ optimism regarding Black Hills Corporation’s prospects. Over the last 60 days, the Zacks Consensus Estimate for the stock has increased 1.7% to $3.04 for 2016, representing year-over-year growth of 1.85%.
Other Stocks to Consider
Black Hills Corporation currently has a market capitalization of approximately $3.2 billion. Some equally well-ranked stocks in the utility industry are RWE AG (OTC:RWEOY) , Korea Electric Power Corp. (NYSE:KEP) and Spark Energy, Inc. (NASDAQ:SPKE) .
KOREA ELEC PWR (KEP): Free Stock Analysis Report
BLACK HILLS COR (BKH): Free Stock Analysis Report
SPARK ENERGY (SPKE): Free Stock Analysis Report
RWE AG -SP ADR (RWEOY): Free Stock Analysis Report
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Zacks Investment Research