Strong Buy on NV Energy
On Jul 27, Zacks Investment Research upgraded
NV Energy, Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
This diversified utility delivered positive earnings surprises in
the last four quarters with an average beat of 14.04%.The
long-term sales growth of the company is presently pegged at
NV Energy Inc.'s second quarter earnings of 31 cents surpassed
the Zacks Consensus Estimate of 25 cents by 24%. Earnings were
6.9% higher than the comparable year-ago period due to increase
in usage, growth in the customer base and a decline in interest
During the second quarter the company entered into a definite
agreement with MidAmerican Energy Holdings Company, a subsidiary
Berkshire Hathaway Inc.
). Per the agreement, the Berkshire Hathaway unit will take over
NV Energy - the transaction already being approved by the Board
of Directors of both companies. This merger will lend NV Energy
additional resources and the financial strength to expand its
operations. The transaction is expected to close in the first
quarter of 2014, subject to the approval of NV Energy's
shareholders and other regulatory go-aheads.
A consistent performance from NV Energy allows it not only to pay
regular dividends but also to increase the quarterly rate. In Feb
2013, the company raised its quarterly dividend rate by 12% to 19
cents per share. The current dividend yield of the company is
3.22%, higher than the industry average of 2.05%.
Other Stocks to Consider
Besides NV Energy,
Integrys Energy Group, Inc.
Companhia Paranaense de Energia
) have a favorable Zacks Rank among others operating in the
industry. Both these companies presently carry a Zacks Rank
#1 (Strong Buy).
BERKSHIRE HTH-A (BRK.A): Free Stock Analysis
COPEL-ADR PR B (ELP): Free Stock Analysis
NV ENERGY INC (NVE): Free Stock Analysis
INTEGRYS ENERGY (TEG): Free Stock Analysis
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