5 Reasons to Add Fortis (FTS) to Your Portfolio Right Now
Fortis Inc. FTS is benefiting from efficiently managing its resources, and providing quality and reliable services to customers.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for the company’s earnings for 2020 has moved up 1.04% to $1.94 per share in the past 60 days, while the same for 2021 has been revised 1% upward to $2.08 in the same time frame.
Surprise History & Long-Term Earnings Growth
Fortis’ trailing four-quarter earnings surprise is 6.3%, on average.
Its long-term (three to five years) earnings growth is currently pegged at 5.99%.
Fortis — which has a history of 46 years of consecutive dividend payment increase — has pledged to grow dividends annually, on average, by 6% through 2024. The company has a dividend yield of 3.47%, much better than the S&P 500’s 1.86%.
Capital Investment Plan
For the 2020-2024 period, the company expects to make investments of $18.8 billion. Out of the total investment, $4.3 billion is planned for 2020, out of which it invested $1.2 billion in first-quarter 2020. The majority of its planned capital expenditure will be directed to strengthen regulated electric and gas operations. Over the same time frame, the company’s rate base is expected to grow by $10 billion to $38.4 billion.
Fortis exited first-quarter 2020 with a strong liquidity and investment credit rating. Total liquidity — including cash — was $4.9 billion, enough to meet its fixed-term debt obligations. The yearly average fixed-term debt obligations of the company will be $1.1 billion over the 2020-2024 time period.
In the past three months, the stock has gained 1.9% against the industry’s decline of 6.9%.
Other Stocks to Consider
Other top-ranked stocks in the same sector include NextEra Energy NEE, Sempra Energy SRE and DTE Energy Company DTE, each carrying a Zacks Rank of 2.
The Zacks Consensus Estimate for 2020 earnings for NextEra Energy, Sempra Energy and DTE Energy has moved up 0.2%, 0.4% and 0.2%, respectively, in the past 30 days.
Long-term (three to five years) earnings growth for NextEra Energy, Sempra Energy, and DTE Energy is currently projected at 7.85%, 7.18% and 5.53%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.