Advertisement
Singapore markets closed

  • Straits Times Index

    3,280.10
    -7.65 (-0.23%)
     

  • Nikkei

    37,934.76
    +306.28 (+0.81%)
     

  • Hang Seng

    17,651.15
    +366.61 (+2.12%)
     

  • FTSE 100

    8,116.21
    +37.35 (+0.46%)
     

  • Bitcoin USD

    64,397.05
    +363.29 (+0.57%)
     

  • CMC Crypto 200

    1,385.70
    -10.83 (-0.78%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • Dow

    38,085.80
    -375.12 (-0.98%)
     

  • Nasdaq

    15,611.76
    -100.99 (-0.64%)
     

  • Gold

    2,357.80
    +15.30 (+0.65%)
     

  • Crude Oil

    84.37
    +0.80 (+0.96%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • FTSE Bursa Malaysia

    1,575.16
    +5.91 (+0.38%)
     

  • Jakarta Composite Index

    7,036.08
    -119.22 (-1.67%)
     

  • PSE Index

    6,628.75
    +53.87 (+0.82%)
     

PPL's Capital Investments & Focus on Clean Energy Bode Well

Zacks Equity Research
·2-min read

PPL Corporation’s PPL investment plan in strengthening infrastructure, focus on cleaner energy generation and growth in domestic operation are likely to further enhance its existing operations.

The Zacks Consensus Estimate for the company’s 2021 earnings is pegged at $2.24 per share, which has moved 2.3% north in the past 60 days. The same for the utility’s 2022 earnings stands at $2.22 per share, having been revised 1.4% upward in the past 60 days.

What’s Driving the Stock?

PPL Corporation’s capital investment plan primarily focuses on its infrastructure-construction projects for generation, transmission and distribution. The utility expects to invest $14.1 billion from 2021 to 2025, which will expand the rate base from $31.3 billion in 2021 to $34.8 billion in 2025.

The company aims to exit its U.K. operations by the first half of this year and post completion of its U.K. asset divestiture, it will no more be exposed to foreign currency risks. Moreover, the utility has enough liquidity which is sufficient to meet its near-term debt obligations.

Moreover, PPL Corporation aims to reduce 80% carbon emission within 2050 from its 2010-levels by introducing carbon capture technology and adding more renewable sources to its energy-generation portfolio. Apart from the company, utilities like Duke Energy DUK, DTE Energy DTE and Avista Corporation AVA made plans to lower carbon footprint for a pollution-free environment.

Woes

However, unplanned outages at power plants may increase PPL Corporation’s expenses. Also, pollution-control execution costs and legal costs may weigh on its finances. Further, stringent laws and regulations may impact PPL Corporation’s revenues, negatively.

Zacks Rank & Price Performance

In the past three months, shares of this currently Zacks Rank #3 (Hold) company have gained 3.4%, outperforming the industry’s rise of 0.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

AccessZacks Top 10 Stocks for 2021 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

DTE Energy Company (DTE) : Free Stock Analysis Report

Duke Energy Corporation (DUK) : Free Stock Analysis Report

PPL Corporation (PPL) : Free Stock Analysis Report

Avista Corporation (AVA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research