MGE Energy Inc.’s MGEE strong fundamentals, favorable growth estimates and a solid financial position make it a great investment choice at the moment.
Zacks Rank & Price Performance
MGE Energy currently carries a Zacks Rank #2 (Buy). In the past year, the stock has gained 19.3%, outperforming the industry’s rise of 6.9%.
One-Year Price Performance
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Growth Projections
The Zacks Consensus Estimate for 2021 earnings and revenues is pegged at $2.87 per share and $568.38 million each, suggesting a respective increase of 10.38% and 5.52% from the corresponding year-ago reported numbers. Also, the consensus mark for 2022 earnings and revenues stands at $3.18 per share and $591.88 million each, suggesting a respective increase of 10.98% and 4.13% from the corresponding prior-year reported figures.
Moreover, its long-term (three to five years) earnings growth rate is currently projected at 5.94%.
Surprise History & Dividend Yield
MGE Energy delivered an earnings surprise of 3.83%, on average, in the last four quarters.
The company has a current dividend yield of 1.93% compared with the S&P 500 composite’s 1.29% average.
Financial Position
MGE Energy’s total debt to total capital is 36.64%, comparing favorably with the industry’s 53.34%. Its times interest earned (TIE) ratio also improved to 6.01 at the end of the first quarter of 2021 from 5.76 at the end of 2020. 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 10.39%, comparing favorably with the industry’s 8.98%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than its peers.
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Entergy Corporation (NYSE:ETR) ETR, Avista (NYSE:AVA) Corporation AVA and Otter Tail (NASDAQ:OTTR) Corporation OTTR, all presently carrying the same Zacks Rank as MGE Energy. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Entergy Corporation delivered a surprise of 10.04%, on average, in the last four quarters. It has a long-term (three-five years) earnings growth rate of 5.1%.
Avista Corporation has a long-term earnings growth rate of 5.44%. The Zacks Consensus Estimate for 2021 earnings has moved 1% north in the past 60 days.
Otter Tail Corporation has a long-term earnings growth rate of 4.7%. The company delivered an earnings surprise of 16.76%, on average, in the trailing four quarters.
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