Kansas City, Missouri-based Evergy, Inc. (EVRG), generates, transmits, distributes, and sells electricity. Valued at $15.5 billion by market cap, the company generates electricity through coal, landfill gas, uranium, and natural gas and oil sources, as well as solar, wind, other renewable sources.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EVRG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. EVRG excels through its stable and predictable revenue stream from its regulated utility operations in Kansas and Missouri, shielded from direct competition by its business model. The company demonstrates financial resilience with consistent cash flows supporting infrastructure investments. EVRG also benefits from operational efficiencies and a strong brand reputation built on reliability and consistent service delivery, fostering customer trust and loyalty.
Despite its notable strength, EVRG slipped 2.7% from its 52-week high of $70.36, achieved on May 7. Shares of EVRG gained 1.5% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) 1.4% gains during the same time frame.
In the longer term, shares of EVRG rose 11.2% on a YTD basis and climbed 30% over the past 52 weeks, outperforming DOWI’s YTD marginal gains and 8.8% returns over the same time frame.
To confirm the bullish trend, EVRG has been trading above its 50-day and 200-day moving averages over the past year, experiencing some fluctuations.
EVRG's strong performance is driven by strategic partnerships and acquisitions in the transmission market. With a commitment to adding renewable assets and achieving carbon neutrality by 2045, Evergy is poised for growth and is a solid investment choice in the utility sector.
On May 8, EVRG shares closed down more than 4% after reporting its Q1 results. Its adjusted EPS of $0.54 did not meet Wall Street expectations of $0.66. EVRG expects full-year adjusted EPS in the range of $3.92 to $4.12.
EVRG’s rival, NextEra Energy, Inc. (NEE) shares lagged behind the stock, declining 1.3% on a YTD basis and 2.9% over the past 52 weeks.
Wall Street analysts are bullish on EVRG’s prospects. The stock has a consensus “Strong Buy” rating from the 14 analysts covering it, and the mean price target of $73.73 suggests a potential upside of 7.7% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
