Zacks Investment Research upgraded electric utility
) to Zacks Rank #2 (Buy) on Apr 2, 2013.
BROOKFIELD INFR (BIP): Free Stock Analysis
EDISON INTL (EIX): Free Stock Analysis Report
ENDESA-CHILE (EOC): Free Stock Analysis
SOUTHN COMPANY (SO): Free Stock Analysis
To read this article on Zacks.com click here.
Why the Upgrade?
Southern Company delivered positive earnings surprise in the last
quarter with a beat of 12.82%. The long-term expected earnings
and sales growth rate for this stock are 4.98% and 1.24%,
Southern Company is constructing two nuclear units at Vogtle
nuclear plant, close to Waynesboro, Ga. The two units are
scheduled to start operation in 2017 and 2018, respectively.
Management expects the units to generate huge electricity to
provide power to roughly 500,000 homes and businesses in Georgia.
In the first half of March, 2013, Mississippi Power Co. − a
wholly owned subsidiary of Southern Company - received approval
from the Mississippi Public Service Commission (PSC) to increase
customer rates by 15%. As a result, Mississippi Power will be
able to recover the construction cost of a new power plant in
Georgia-based Southern Company is one of the largest generators
of electricity in the nation, serving regulated and competitive
markets across the southeastern region of U.S. The company
continues to earn returns that are among the highest in the
industry, while at the same time maintains its position as a
low-cost provider of electricity with superior customer
Moreover, Southern Company expects to invest approximately $14.0
billion over the three-year period of 2012 - 2014, the bulk of
which is dedicated to regulated businesses with the main focus on
transmission, distribution and generation facilities. This is
expected to result in significant rate base and earnings growth
through an increase in efficiency and production.
Other Stocks to Consider
In the electric utility space,
Brookfield Infrastructure Partners LP
Empresa Nacional de Electricidad SA
) display better fundamentals and currently hold a Zacks Rank #1