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Here's Why You Should Add IDACORP Stock to Your Portfolio Now

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IDACORP Inc.’s (IDA - Free Report) strategic investments are expected to strengthen its infrastructure, which should further boost its performance. The company’s cost management and focus on producing more electricity from clean sources act as tailwinds. Given its growth opportunities, IDA makes for a solid investment option in the utility sector.

Let’s explore the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.

IDA’s Growth Projections & Surprise History

The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 0.6% to $5.41 in the past 60 days.

The Zacks Consensus Estimate for 2024 sales is pinned at $1.85 billion, indicating a year-over-year increase of 4.5%.

IDA’s long-term earnings (three-to-five-year) growth rate is 8.31%. The company delivered an average earnings surprise of 4.3% for the trailing four quarters.

Debt Position of IDA

Currently, the company’s total debt to capital is 48.8%, much better than the industry’s average of 61.7%.

The time-to-interest earned ratio at the end of the third quarter of 2024 was 2.9. The ratio, being greater than one, reflects IDACORP’s ability to meet future interest obligations without difficulties.

IDA’s Liquidity

IDACORP’s current ratio is 1.71, better than the industry’s average of 0.77. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.

Dividend History of IDA

The company has been consistently increasing shareholders value by paying regular dividends. Currently, its quarterly dividend is 86 cents per share, resulting in an annualized dividend of $3.44, up 3.6% from the previous rate. The current dividend yield is 3.07%, better than the Zacks S&P 500 composite’s 1.18%.

IDA’s Systematic Investments

The company expects capital expenditures to be in the range of $925-$975 million in 2024, $1-$1.1 billion in 2025 and $3.5-$4 billion in 2026-2028. The planned long-term investment indicates a 46% increase from its previous five-year capital expenditure plan. The strong capital expenditures should further strengthen IDACORP's infrastructure and expand its operations, allowing it to serve a wider customer base.

IDA’s Stock Price Performance

In the past six months, the company’s shares have risen 23.1% compared with the industry’s growth of 7.2%. 

 

Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

A few other top-ranked stocks from the same industry are Vistra (VST - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present, and Avangrid and DTE Energy (DTE - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

VST’s long-term earnings growth rate is 17.4%. It delivered an average earnings surprise of 7.1% for the trailing four quarters.

AGR’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for AGR’s 2024 EPS implies a year-over-year improvement of 12%.

DTE’s long-term earnings growth rate is 8.04%. The Zacks Consensus Estimate for 2024 EPS implies a year-over-year improvement of 18%.

 


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DTE Energy Company (DTE) - free report >>

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