On Jul 9, Zacks Investment Research upgraded
Black Hills Corporation
) to a Zacks Rank #1 (Strong Buy).
AES CORP (AES): Free Stock Analysis Report
BLACK HILLS COR (BKH): Free Stock Analysis
COPEL-ADR PR B (ELP): Free Stock Analysis
INTEGRYS ENERGY (TEG): Free Stock Analysis
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Why the Upgrade?
This electric utility delivered positive earnings surprises in
three out of the last four quarters with an average beat of
10.43%. The long-term expected earnings growth rate for this
stock is 6.0%.
Black Hills Corporation is poised to benefit from increased
demand from all customer classes. The operational
efficiency of this company enhances reliability of its services,
increasing consumer satisfaction. This helps the company to
further expand its customer base. The company also benefited from
customer rate adjustments and will continue to enjoy the same
over the next few quarters.
The strategic initiatives undertaken by the utility to add to its
power generation capacity and drilling activities in Mancos Shale
formation in the Piceance Basin will improve its natural gas
The financial strength of Black Hills Corporation allows it to
make strategic acquisitions. The gas utility segment acquired two
small systems in the first quarter, swelling its customer base by
500 retail and two high-volume industrial customers.
Moreover, the strong financial position enables Black Hills
Corporation to reward its shareholders through regular dividend
payments. The company has increased its annual dividend rate for
43 consecutive years.
The Zacks Consensus Estimate for 2013 increased 1.7% in the last
60 days to $2.33 per share which reflects year-over-year growth
Besides Black Hills Corporation, other operators in the sector
having a favorable Zacks Rank and are
Companhia Paranaense de Energia
Integrys Energy Group Inc.
The AES Corporation
). Companhia Paranaense and Integrys Energy currently retain a
Zacks Rank #1 (Strong Buy) while AES Corporation has a Zacks Rank