On May 14, 2013, Zacks Investment Research downgraded
MGE Energy Inc. ( MGEE ) to a Zacks Rank
Why the Downgrade?
Although MGE Energy benefited from cold winter weather in the
first quarter of 2013, the U.S. economy is still frail and with a
slow recovery, we expect the company to witness lukewarm
The Zacks Consensus Estimate for the second quarter 2013
reflects a projected fall of 1.61% from the year-ago earnings of 62
cents per share. In the past two months quarterly estimated
earnings per share witnessed no upward revision.
Moreover, MGE Energy's installation of environment controls in
compliance with strict regulatory laws at its energy generation
facility in Wisconsin is expected to add to cost pressure.
However, MGE Energy's strong financial position and gain from
investments in American Transmission Company ("ATC") will keep the
company well positioned.
Other Stocks to Consider
Despite the weak macroeconomic environment, the company is
expected to do well. The reduction in coal-to-gas switch will act
as tailwinds as coal is the major source of generation for MGE
Other utility stocks that are currently performing well and
warrant a look include Empresa Nacional Electricidad
SA ( EOC ),
CPFL Energia S.A. ( CPL ) and El
Paso Electric Co. ( EE ). All the above are
well placed in the U.S. energy market and presently hold a Zacks
Rank #1 (Strong Buy).CPFL ENERGI-ADR (CPL): Get Free ReportEL PASO ELEC CO (EE): Free Stock Analysis
ReportENDESA-CHILE (EOC): Free Stock Analysis ReportMGE ENERGY INC (MGEE): Free Stock Analysis
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