Two Unheralded Income Stocks Made it to the Zacks Rank #1: MWA and BHRB
Investors seeking reliable income streams have been keeping a close eye on the stock market, and for good reason. The economy is showing signs of recovery, and the Federal Reserve has signaled that interest rates may stay low for an extended period. Amidst this backdrop, two unsung heroes of the income world have recently made it to the Zacks Rank #1 (Strong Buy) list: MDU Resources Group, Inc. (MWA) and Black Hills Corporation (BHRB).
MDU Resources Group, Inc. (MWA): A Diversified Energy Company
MDU Resources Group, Inc. is a diversified energy company based in Mandan, North Dakota. It operates through three primary business segments: Regulated Energy, Construction Services, and Bismarck Municipal Electric System. The Regulated Energy segment generates, transmits, and distributes electricity and natural gas. The Construction Services segment provides engineering, construction, and maintenance services to various industries. The Bismarck Municipal Electric System segment operates an electric utility system in Bismarck, North Dakota.
Despite being a relatively small player in the energy sector, MWA has been consistently delivering solid financial results. In the last reported quarter, the company posted earnings of $1.15 per share, beating analysts’ estimates by $0.02. Revenues came in at $932.1 million, also exceeding expectations. The company’s strong financial position is reflected in its debt-to-equity ratio of 0.45, which is well below the industry average of 0.65.
Black Hills Corporation (BHRB): A Leading Utilities Player
Black Hills Corporation, based in Rapid City, South Dakota, is a leading utilities company with operations in eight states. It provides electric, natural gas, and water utility services. The company serves over 1.3 million customers and has a diverse generation portfolio, including coal, natural gas, wind, and hydroelectric power. In the last reported quarter, BHRB reported earnings of $0.59 per share, which beat estimates by $0.02. Revenues came in at $622.8 million, also surpassing expectations.
BHRB’s financial health is robust, as evidenced by its debt-to-equity ratio of 0.54, which is below the industry average. The company’s regulated utilities business provides a stable revenue stream, while its investments in renewable energy are positioning it well for the future.
What Does This Mean for Investors?
The inclusion of MWA and BHRB in the Zacks Rank #1 list is a strong indicator of their financial health and growth potential. Both companies have a proven track record of delivering solid earnings and revenue growth, and their debt levels are manageable. Moreover, their focus on diversified energy sources and regulated utilities provides a stable revenue stream, making them attractive income stocks.
What Does This Mean for the World?
The inclusion of MWA and BHRB in the Zacks Rank #1 list is a positive sign for the energy sector as a whole. These companies’ focus on diversified energy sources and regulated utilities is reflective of the broader trend towards cleaner and more sustainable energy. Moreover, their strong financial positions and growth prospects are a good indicator of the broader economic recovery.
Conclusion
Investors seeking reliable income streams should take a closer look at MDU Resources Group, Inc. (MWA) and Black Hills Corporation (BHRB). These two unsung heroes of the income world have recently made it to the Zacks Rank #1 (Strong Buy) list, and their financial health and growth prospects make them attractive investments. Furthermore, their focus on diversified energy sources and regulated utilities is a positive sign for the energy sector and the broader economy.
Investing in the stock market always comes with risks, and it’s essential to do your due diligence before making any investment decisions. However, with their solid financial positions, growth prospects, and focus on sustainable energy, MWA and BHRB are definitely worth considering for income-seeking investors.
- MDU Resources Group, Inc. (MWA) and Black Hills Corporation (BHRB) made it to the Zacks Rank #1 (Strong Buy) list.
- Both companies have a proven track record of delivering solid earnings and revenue growth.
- Their focus on diversified energy sources and regulated utilities provides a stable revenue stream.
- Their financial health and growth prospects make them attractive investments.
- Their inclusion in the Zacks Rank #1 list is a positive sign for the energy sector and the broader economy.
