Investors looking for stocks in the Utility - Electric Power sector might want to consider either E.ON SE (EONGY) or Pinnacle West (PNW). But which of these two stocks presents investors with the better value opportunity right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
With 80% of its business in regulated networks, E.ON benefits from low-risk and high-visibility returns. E.ON plans €43 billion in investments from 2024-28, aiming to boost EBITDA and adjusted net income by +7% CAGR, targeting €11.3 billion EBITDA by 2028. The German parliament has passed a historic spending bill enabling the government to finance billions of euros in infrastructure. This is highly positive for E.ON.
Investors with an interest in Utility - Electric Power stocks have likely encountered both E.ON SE (EONGY) and Pinnacle West (PNW). But which of these two stocks offers value investors a better bang for their buck right now?
Here is how E.ON SE (EONGY) and Sabesp (SBS) have performed compared to their sector so far this year.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
E.ON SE (OTCPK:EONGY) Q4 2024 Earnings Conference Call February 26, 2025 6:00 AM ET Company Participants Iris Eveleigh - Senior Vice President Investor Relations Leonhard Birnbaum - Chief Executive Officer Nadia Jakobi - Chief Financial Officer Conference Call Participants Wierzbicka Serwinowska - UBS Harry Wyburd - Exane Alberto Gandolfi - Goldman Sachs Meike Becker - HSBC Deepa Venkateswaran - Bernstein Peter Bisztyga - Bank of America James Brand - Deutsche Bank Ingo Becker - Kepler Iris Eveleigh Good morning, everyone. Dear analysts and investors, a warm welcome from my side to our full year 2024 results call.
E.ON CEO Leonhard Birnbaum outlines the company's full-year results and the European energy sector.
E.ON , Europe's largest operator of energy networks, expects core profit to rise by up to 9% in 2025 and upgraded its mid-term outlook, citing record investments in its power grids.
E.ON SE, a leading European distribution system operator, is well-positioned to benefit from the energy transition and digitalization trends. The company plans to invest over €8 billion annually by 2028 to expand and modernize its grid infrastructure, ensuring long-term revenue growth. Despite high debt and negative free cash flow, E.ON's stable, regulated income and attractive dividend yield offer solid return potential for investors.
The development of a green hydrogen market in Germany still depends to a large extent on public spending, utility E.ON said on Friday.
E.ON's latest earnings report led analysts to raise long-term targets, now seeing the company as more undervalued with a target above €16/share. Despite decent earnings and maintained guidance, E.ON's valuation and low dividend yield make it a "HOLD" with a price target of €11.5/share. E.ON's focus on networks, retail sales, and renewables, alongside increased CapEx for 2024-2028, positions it well but with limited upside.