Energy services holding company,
AGL Resources Inc.
) hit a 52-week high of $51.63 on Apr 15. In the past three
months, the company witnessed over 10% growth in share price,
supported by robust trading volumes. The company recently crossed
the psychologically important $50 per share mark for the first
This recent positive momentum is attributable to the bullish
first quarter expectations announced last week. AGL Resources
anticipates operating earnings from its wholesale services
segment to significantly surpass earlier projections. Segment
earnings are expected at $270.0 million, indicating a massive
jump from $29.0 million reported a year ago. Segment EPS is
expected to be $1.53 compared with 8 cents a year ago.
AGL Resources added that its distribution and retail operations
could exceed estimates, on a combined basis. The better-than
anticipated earnings data is due to increase in natural gas
demand led by the unusually cold weather that persisted through
the first quarter.
Other factors like a solid dividend yield of 3.88%, near-monopoly
status in its area of operation, best-in-class cost control and
recession-proof business model all work in favor of this premier
electric utility firm.
With earnings release just around the corner (expected to report
on Apr 29), brokerage firms are also showing confidence in AGL
Resources. Over the last 30 days, current quarter estimates have
grown nearly 21% to $1.85 per share. Currently, the company has
an Earnings ESP of +2.16%, another sign of a beat in the upcoming
AGL Resources climbed the rank ladder from Zacks Rank #3 (Hold) a
month ago to its current Zack Rank #1 (Strong Buy). Moreover, it
belongs to a well positioned industry - Gas Distribution
Utilities (Zacks Industry Rank of 22 out of more than 250
industries). All these factors support the recent bullishness and
hint at further good news for AGL Resources.
Other Stocks to Consider
In addition to AGL Resources, investors interested in this
industry may also consider
Delta Natural Gas Company, Inc.
Chesapeake Utilities Corporation
Gas Natural Inc.
). While Delta Natural sports a Zacks Rank #1, Chesapeake
Utilities and Gas Natural hold a Zacks Rank #2 (Buy).
CHESAPEAKE UTIL (CPK): Free Stock Analysis
DELTA NAT GAS (DGAS): Free Stock Analysis
GAS NATURAL INC (EGAS): Free Stock Analysis
AGL RESOURCES (GAS): Free Stock Analysis
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