Investors with an interest in Utility - Gas Distribution stocks have likely encountered both MDU Resources (MDU) and Atmos Energy (ATO). But which of these two stocks offers value investors a better bang for their buck right now?
MDU Resources, now a pure-play regulated energy delivery business, has shown strong financial performance post-spin-offs. MDU benefits from strategic rate adjustments, infrastructure investments, and expanding data center agreements, positioning it for continued growth. MDU's solid balance sheet, investment-grade credit rating, and potential 4% dividend yield, combined with 6-8% annual EPS growth guidance, offer a balanced mix of income and growth.
Investors interested in Utility - Gas Distribution stocks are likely familiar with MDU Resources (MDU) and Atmos Energy (ATO). But which of these two stocks offers value investors a better bang for their buck right now?
Jefferies initiated coverage of MDU Resources with a Hold rating and $18 price target. MDU Resources is an upper-midwest, pacific northwest electric/gas utility and pipeline operator that is pursuing its pure-play regulated growth story, says the analyst, who models 8.3% EPS compound annual growth at the high-end of the 6-8% EPS CAGR target. The stock's premium to electric/gas peers reflect diversified utilities, data center exposure, and the pipeline outlook, the analyst tells investors.
MDU raises its investment plan to $3.1 billion for 2025-2029. With this, MDU aims to support its growing customer base and modernize infrastructure.
MDU reports better-than-expected third-quarter earnings. Management raises its 2024 regulated energy delivery earnings upward.
MDU Resources Group, Inc. (MDU) Q3 2024 Earnings Call Transcript
MDU Resources offers strong potential with its diversified utility, pipeline, and construction services, providing steady revenue and growth opportunities. The company's focus on core utilities going forward enhances its financial stability and growth prospects, along with promising pipeline expansions. MDU's pipeline segment has shown significant earnings growth, supported by strategic expansions and increasing storage revenue.
MDU continues to benefit from its planned investments, growing customer base and focus on regulated energy delivery.
MDU Resources (MDU) continues to increase shareholders' value as its board of directors approves a 4% quarterly dividend hike.
MDU Resource's (MDU) second-quarter earnings increase, while revenues decline year over year. Total operating expenses decrease during the same period.
MDU Resources (MDU) makes a strong case for investment, given its growth prospects, strong ROE and ability to increase shareholders' value.