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

Pampa Energia S.A. PAM focuses on maintaining asset quality and expanding its generation portfolio. The company benefits from its efforts to expand its operations in the generation, transmission and distribution of electricity in Argentina. Given its strong growth, PAM makes for a solid investment option in the utility sector.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment option at the moment.PAM’s Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has moved up 51.3% to $10.14 in the past 30 days.The Zacks Consensus Estimate for 2025 sales is pinned at $2.26 billion, indicating year-over-year growth of 20.2%.The company delivered an average earnings surprise of 192.4% in the past four quarters.PAM’s Return on Equity (ROE)ROE indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Pampa Energia’s ROE is 19.55%, higher than the industry’s average of 9.77%. This indicates that the company has been utilizing its shareholders' funds more constructively (to generate income) than its peers in the electric power utility industry.Debt Position of PAMCurrently, PAM’s total debt to capital is 35.06%, better than the industry’s average of 60.82%.The time-to-interest earned ratio at the end of the fourth quarter of 2024 was 3.7. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.PAM’s LiquidityThe company’s current ratio of 1.83 is better than the industry’s average of 0.79. 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.PAM’s Focus on Clean Power GenerationSince 2018, Pampa Energia has been actively developing wind energy, establishing itself as one of Argentina’s leading renewable energy companies. During the fourth quarter of 2024, the company’s net power generation was 4,797 gigawatt-hours, comprising hydro, wind and thermal sources.In November 2024, the final six wind turbines of PAM’s PEPE 6 were commissioned, reaching a total installed capacity of 139.5 megawatts (MW). PAM’s more than $250 million investment should bring its total installed wind power capacity to 427 MW, positioning it as one of the country’s leading renewable power producers.PAM’s Stock Price PerformanceIn the past six months, Pampa Energia’s shares have risen 11.1% against the industry’s 2.8% decline. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Avista AVA, sporting a Zacks Rank #1 (Strong Buy) at present, and WEC Energy WEC and Exelon Corporation EXC, both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.AVA’s long-term (three to five years) earnings growth rate is 6.07%. The Zacks Consensus Estimate for AVA’s 2025 EPS implies a year-over-year improvement of 14%.WEC’s long-term earnings growth rate is 6.79%. The company delivered an average earnings surprise of 6.3% in the past four quarters.EXC’s long-term earnings growth rate is 5.71%. The Zacks Consensus Estimate for 2025 EPS implies a year-over-year increase of 6.4%. Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exelon Corporation (EXC): Free Stock Analysis Report WEC Energy Group, Inc. (WEC): Free Stock Analysis Report Pampa Energia S.A. (PAM): Free Stock Analysis Report Avista Corporation (AVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks