When it comes to utility stocks, growth is not the first word that comes to mind. Yet as populations grow and communities urbanize, the demand for utility services rises rapidly. With this idea in mind, today we focused on utility companies that are expected to grow over the next year. We honed in on only the utility companies that analysts have weighed in on and given positive ratings to. We came up with a short but interesting list - we hope you find it helpful.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for utility stocks. We then looked for companies that analysts rate as "Buy" (2 < mean recommendation < 3). We then looked for businesses that have expected earnings per share growth of more than 25 percent for next year(1-year projected EPS Growth Rate>25%). We did not screen out any market caps.
Do you think these stocks will continue to see such strong profitability? Use this list as a starting-off point for your own analysis.
1) GenOn Energy, Inc. (NYSE:GEN)
GenOn Energy, Inc. has a Analysts' Rating of 2.20, and a 1-Year Projected Earnings Per Share Growth Rate of 66.70%. The short interest was 1.04% as of 06/22/2012. GenOn Energy, Inc., together with its subsidiaries, provides energy, capacity, ancillary, and other energy services to wholesale customers in the energy market in the United States. It also operates as a wholesale generator of electricity; and involves in asset management and proprietary trading, fuel oil management, and natural gas transportation and storage activities. The company generates electricity using coal, natural gas, and oil resources.
2) Calpine Corp. (NYSE:CPN)
Calpine Corp. has a Analysts' Rating of 2.00, and a 1-Year Projected Earnings Per Share Growth Rate of 119.35%. The short interest was 0.76% as of 06/22/2012. Calpine Corporation, an independent wholesale power generation company, owns and operates natural gas-fired and geothermal power plants in North America. It operates natural gas-fired combustion turbines and renewable geothermal conventional steam turbines, as well as cogeneration power plants. The company sells wholesale power, steam, capacity, renewable energy credits, and ancillary services to utilities, independent electric system operators, industrial and agricultural companies, retail power providers, municipalities, and power marketers. As of February 10, 2012, it operated a fleet of 93 power generation plants representing more than 28,000 megawatts of generation capacity.
3) Brookfield Infrastructure Partners L.P. (NYSE:BIP)
Brookfield Infrastructure Partners L.P. has a Analysts' Rating of 2.50, and a 1-Year Projected Earnings Per Share Growth Rate of 44.34%. The short interest was 0.81% as of 06/22/2012. Brookfield Infrastructure Partners L.P. engages in the utilities, transportation and energy, and timber businesses. The company operates a port facility that exports metallurgical and thermal coal mined in the central Bowen Basin region of Queensland, Australia; approximately 8,800 kilometers of electricity transmission lines in North and South America; and approximately 1.5 million electricity and natural gas connections in the United Kingdom, New Zealand, and Colombia.
4) American Midstream Partners LP (NYSE:AMID)
American Midstream Partners LP has a Analysts' Rating of 2.00, and a 1-Year Projected Earnings Per Share Growth Rate of 110.71%. The short interest was 0.42% as of 06/22/2012. American Midstream Partners, LP engages in gathering, treating, processing, and transporting natural gas in the Gulf Coast and Southeast regions of the United States. Its primary assets are located in Alabama, Louisiana, Mississippi, Tennessee, and Texas, which provide infrastructure that link producers and suppliers of natural gas to various natural gas markets, including various interstate and intrastate pipelines, as well as utility, industrial, and other commercial customers. The company's Gathering and Processing segment provides wellhead to market' services to producers of natural gas and oil, which include transporting raw natural gas from various receipt points through gathering systems; treating the raw natural gas; processing raw natural gas to separate the natural gas liquids (NYSE:NGLS); and selling or delivering pipeline quality natural gas, as well as NGLs to various markets and pipeline systems.
5) Huaneng Power International Inc. (NYSE:HNP)
Huaneng Power International Inc. has a Analysts' Rating of 2.30, and a 1-Year Projected Earnings Per Share Growth Rate of 27.89%. The short interest was 0.11% as of 06/22/2012. Huaneng Power International Inc., an independent power producer, engages in the generation and sale of electric power to the regional or provincial grid companies in the People's Republic of China. It involves in the investment, construction, operation, and management of power plants in China and Singapore. As of March 31, 2011, the company had controlling generating capacity of 54,402 megawatts, and a total generating capacity of 50,935 megawatts on an equity basis.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Google Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.