Fortis Inc. FTS continues to benefit from investments made in the expansion of major transmission projects and from rising demand for energy from data centers. Grid modernization and systematic investments to upgrade aging infrastructure will enhance service reliability and assist it in serving an expanding customer base.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projection & Surprise History
The Zacks Consensus Estimate for Fortis’ 2026 earnings per share is pegged at $2.56, suggesting year-over-year growth of 3.23%.
The Zacks Consensus Estimate for 2026 revenues is pinned at $9.26 billion, suggesting year-over-year improvement of 5.50%.
The company’s long-term (three to five years) earnings growth rate is 4.29%. Fortis surpassed earnings estimates in three out of the last four quarters and missed estimates in one quarter, resulting in an average earnings surprise of 2.38%.
Stable Investments
FTS plans to invest $28.8 billion over the 2026-2030 time frame. These investment initiatives focus on strengthening the transmission and distribution projects. The planned investment will also support load growth, reliability and future generation interconnections. The investments also consider the Springerville Natural Gas Conversion project.
Dividend History
Fortis has a dividend yield of 3.54% versus the industry yield of 2.91%. The company announced its first-quarter 2026 dividend of 64 cents per share, resulting in an annualized dividend of $2.56.
The company is rewarding its shareholders with a continuous increase in dividends. Long-term dividend growth projected by the company for 2030 is 4-6%.
Risk Management
Beta measures an investment’s sensitivity to overall market movements, showing how much its price is likely to fluctuate relative to changes in the market. Fortis’ beta factor is 0.5, which is less than one and suggests that the stock is less volatile than the market. Thus, it offers stability to investors.
Share Price Performance
In the past three months, the stock has gained 2.3% against the industry’s 4.1% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks in the Zacks Utilities sector are NextEra Energy NEE, Edison International EIX and ONE Gas OGS. While EIX currently sports a Zacks Rank #1 (Strong Buy), NEE and OGS carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate of NextEra Energy, Edison International and ONE Gas is projected at 8.08%, 10.93% and 6.66%, respectively.
The dividend yields for NextEra Energy, Edison International and ONE Gas are projected at 2.89%, 6.00% and 3.49%, respectively.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
