Dynegy (DYN) Scales A 52-Week High On Asset Divestitures

Dynegy Inc. (NYSE:DYN) hit a new 52-week high of $13.58 before closing the session a bit lower at $13.38 on Mar 9. Year to date, the stock has delivered an impressive return of about 79.4% compared with the S&P 500 index’s rally of 17.8%.

Over the past 52 weeks, Dynegy’s shares have ranged from a low of $5.84 to a high of $13.58. Average volume of shares traded over the last three months is approximately 3.38 million.

What's Driving Dynegy Higher?

Dynegy delivered a positive earnings surprise of 103.03% in the fourth quarter. In 2017, Dynegy divested five power generation facilities for $773 million cash. The company used the proceeds and cash in hand to clear outstanding debts of $900 million. Through repayments and refinancing, Dynegy reduced the debt maturity for 2019 to $850 million from $2.1 billion.

On Feb 7, 2017, the company completed the acquisition of ENGIE's U.S. portfolio with 9,017 megawatts of predominately gas-fueled generating capacity in the ERCOT, ISO-NE, and PJM markets. This buyout, along with the others since 2013, helped the company convert its generation portfolio to a predominately gas-based one from coal-based.

Owing to these positive initiatives, the Zacks Consensus Estimate for 2018 moved up 244.8% in the last 60 days.

Dynegy’s integration with Vistra Energy (NYSE:VST) will result in multiple capital allocation and growth opportunities, which will boost shareholder’s value

Zacks Rank & Other Stocks to Consider

Dynegy carries a Zacks Rank #2 (Buy).

A few other top-ranked stocks in the same industry are CenterPoint Energy, Inc. (CNP) and NextEra Energy, Inc. (NEE). The stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CenterPoint Energy (NYSE:CNP) posted an average positive earnings surprise of 11.5% in the past four quarters. The Zacks Consensus Estimate moved up 5.4% in the last 30 days.

NextEra Energy (NYSE:NEE) posted an average positive earnings surprise of 4.75% in the past four quarters. The Zacks Consensus Estimate moved up 5% in the last 30 days.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>