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south jersey industries SJI, through its strategic capital investments, aims to strengthen the infrastructure. Enhanced earnings estimates and fixed dividend payments make a strong case for investing in utility space.
Let’s focus on the factors that make Zacks stock #2 (buy) a solid investment choice right now. you can see The full list of Zacks #1 stocks (strong buy) today is here.
Zacks Consensus’ estimate for 2022 earnings of $1.69 per share reflects 4.44% year-over-year growth. Revenue estimates of $1.81 billion for 2022 indicate an annual growth of 2.45%.
Surprising history and long-term growth
South Jersey Industries has posted a surprising 82.81% average profit in the past four quarters.
The company’s long-term earnings growth (three to five years) is expected to be 5.63%.
Currently, SJI has a dividend yield of 4.87% compared to 2.88% in the industry. SJI has a long history of 70 years of dividend payments and has collected annual dividends for 22 consecutive years. The stable performance has allowed SJI to distribute dividends to shareholders at regular intervals.
South Jersey Industries plans to maintain a 3% annual earnings growth target in the 2021-2025 time frame, subject to approval by its board of directors.
South Jersey Industries expects regular capital expenditures of $3.5 billion for the 2021-2025 time period – With over 80% dedicated to the growth, safety and reliability of its customers. It also plans to cut carbon emissions by 100% by 2040.
SJI’s well-tiered capex also drives earnings per share growth. South Jersey Industries expects a long-term compound annual growth rate of 5-8% over the 2021-2025 time period.
In the past three months, the stock is up 15.7% compared to the 3.1% industry growth.
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Other balances to consider
Other stocks in the Zacks Utilities sector that investors can consider include Atmos Energy those, MDU . resource group MDU and Hawaii Electrical Industries HE, they all hold a Zacks #2 rank.
Long-term (three to five years) earnings growth for Atmos Energy, MDU Resources Group and Hawaiian Electric Industries is expected to be 7.27%, 6.81% and 7.35%, respectively.
Zacks consensus estimate of 2022 earnings per share for Atmos Energy, MDU Resources Group and Hawaiian Electric Industries increased 6.62%, 11.06% and 0.45% year over year, respectively.
Atmos Energy, MDU Resources Group and Hawaiian Electric Industries have posted earnings surprise of 6.46%, 3.47% and 31.03%, respectively, on average, in the past four quarters.
Infrastructure stock boom to sweep America
A massive push to rebuild America’s crumbling infrastructure will soon begin. It is certain, urgent and inevitable. Trillions will be spent. fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a special report to help you do just that, and it’s free today. Discover 5 private companies looking to get the most from construction and repairs to roads, bridges and buildings, as well as moving goods and transforming energy on an almost unimaginable scale.
Download for free: How to capitalize on trillions of infrastructure spending >>
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Hawaiian Electric Industries, Inc. (HE): Free Stock Analysis Report
South Jersey Industries, Inc. (SJI): Free Stock Analysis Report
Atmos Energy Corporation (ATO): Free Inventory Analysis Report
MDU Resources Group, Inc. (MDU): Free Stock Analysis Report
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