For Immediate Release
Chicago, IL – October 23, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: DTE Energy Co. DTE, NextEra Energy Partners LP NEP and FirstEnergy Corp. FE.
Here are highlights from Tuesday’s Analyst Blog:
3 Wind Energy Stocks to Buy Ahead of Q3 Earnings
The United States is expected to see robust demand for electric power from artificial intelligence (AI)-driven data center growth, widespread adoption of electric vehicles (EV), and an increase in residential demand. In this regard, renewable energy is emerging as an industry promising long-term gains.
Out of several forms of alternative energy, wind energy is at the forefront of the global transition toward renewable energy, a critical theme in combating climate change. Here, we have selected three utilities with a growing focus on wind energy. These are: DTE Energy Co., NextEra Energy Partners LP and FirstEnergy Corp.
Growing Demand for Wind Energy
Land-based, utility-scale wind turbines provide one of the lowest-priced energy sources available in the market right now. Furthermore, wind energy’s cost competitiveness continues to improve with advances in the science and technology of wind energy.
Apart from being an abundant and inexhaustible resource, wind also provides electricity without burning any fuel or polluting the air. Per the U.S. Department of Energy, wind energy in the country helps avoid 336 million metric tons of carbon dioxide emissions annually, which is equivalent to emissions from 73 million cars.
The demand for wind energy is rising globally. According to a Skyquest report, the global wind energy market size was valued at $87.66 billion in 2023 and is poised to reach $174.67 billion by 2031 from $95.54 billion in 2024, at a CAGR of 9%.
U.S. Federal incentives like the Inflation Reduction Act (IRA) have bolstered wind energy investments, particularly in offshore wind, which is poised for substantial growth with the expected completion of new large-scale projects. The IRA extends and increases investment and production tax credits through 2024 for wind energy projects that begin construction before Jan. 1, 2025.
Per a U.S. Energy Information Administration report, among other renewable sources, wind is expected to contribute 19% to U.S. electricity generation growth in 2024. Renewables have historically generated maximum electricity in the spring when wind turbine output peaks.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
3 Wind Energy Stocks to Buy Ahead of Earnings Results
These companies will report third-quarter 2024 earnings results this month. Moreover, these companies pay dividends regularly at an attractive rate. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DTE Energy Co. Shares to Gain From Wind Power Investment
DTE Energy is gaining substantially from a clean energy investment push that has received strong policy support following the 2022 U.S. Inflation Reduction Act. DTE has been investing steadily to enhance its renewable generation assets. DTE aims to invest more than $11 billion in clean energy transition over the next 10 years.
Through this solid investment, DTE aims to develop 6,500 MW of solar projects and 8,900 MW of wind projects by 2042. Additionally, it plans to accelerate the development of energy storage, targeting 780 MW through 2030 and 1,830 MW by 2042.
To promote clean energy, DTE has its MIGreen Power program, through which DTE Electric offers its customers the option to voluntarily source their energy usage from renewables. This program aims to substantially accelerate the development of new wind and solar projects across Michigan. As of June 2024, this program had nearly 100,000 residential customer subscriptions.
DTE Energy has an expected earnings growth rate of 16.9% for the current year. Although its revenue growth rate is negative for the current year, it is 4.3% for next year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 90 days. DTE has a current dividend yield of 3.17%. DTE Energy will report on Oct. 24, before the opening bell.
NextEra Energy Partners Stock to Benefit on Wind Energy Focus
NextEra Energy Partners has completed several financing agreements to secure funds for acquisitions and improve financial flexibility. The passage of the Inflation Reduction Act and the use of new technology are helping NEP develop renewable projects. NEP sold its Texas natural gas pipeline assets to become a pure-play renewable energy player.
NextEra Energy Partners expects to repower approximately 1.3 gigawatts of its existing wind facilities through 2026. NEP announced its plans to repower an additional 100 MW of wind facilities through 2026, bringing the total announced repowering to approximately 1,085 MW.
NEP sold its Canadian portfolio of wind and solar assets to enjoy the benefit of a lower effective domestic corporate tax rate and a longer tax shield than Canada. The decision to move out of Canada and use the proceeds in U.S. operations is expected to be accretive to long-term growth.
NextEra Energy has an expected revenue and earnings growth rate of 2.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 26.4% over the last 90 days. NEP has a current dividend yield of 13.82%. NextEra Energy will report on Oct. 23, before the opening bell.
Wind Power Boosts FirstEnergy Corp. Stock
FirstEnergy generates, transmits, and distributes electricity in the United States. FE operates through Regulated Distribution and Regulated Transmission segments. FE owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities.
FE operates 24,080 circuit miles of overhead and underground transmission lines, and electric distribution systems, including 274,518 miles of overhead pole line and underground conduit carrying primary, secondary, and street lighting circuits.
FirstEnergy has an expected revenue and earnings growth rate of 6.4% and 5.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 90 days. FE has a current dividend yield of 3.89%. FirstEnergy will report on Oct. 29, after the closing bell.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpFirstEnergy Corporation (FE) : Free Stock Analysis Report
DTE Energy Company (DTE) : Free Stock Analysis Report
NextEra Energy Partners, LP (NEP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
