Reasons to Add National Grid Stock to Your Portfolio Now

National Grid NGG is poised to benefit from its systematic investment to upgrade and expand infrastructure. Rising demand from new customer connections and its low-risk, high-quality asset make NGG a solid investment option in the utility sector.Let us focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.NGG’s Earnings Growth ProjectionsThe Zacks Consensus Estimate for fiscal 2025 and 2026 earnings per share (EPS) has increased 0.21% and 0.58%, respectively, in the past 60 days.Image Source: Zacks Investment ResearchNational Grid’s long-term (three to five years) earnings growth rate is 2.34%.NGG’s Focus on Clean EnergyThe company is enabling the energy transition for all and aims to reach net-zero emissions by 2050. National Grid is working with its partners to accelerate the development of a clean energy future. In the United States, NGG has made significant investments in large-scale renewable energy projects, including wind and solar.Demand From New CustomersThe company will benefit from rising demand from new customer connections in its service region. National Grid will enjoy the benefit of 2.3 gigawatts of additional demand coming from new customers. The company also received transmission-scale data center connection requests.NGG’s SolvencyThe time-to-interest earned ratio at the end of fiscal 2024 was 2.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.National Grid’s Dividend YieldNGG has been consistently increasing shareholders’ value by paying dividends. The company's current dividend yield is 2.84%, up from the S&P 500 Composite's 1.66%.NGG’s Systematic InvestmentsNational Grid has plans to invest nearly $69 billion (£ 60 billion) across its service territory in the United Kingdom and the United States over the next five years, with nearly half of the funding dedicated to U.S. energy system improvements in Massachusetts and New York.NGG Stock’s Price PerformanceIn the past six months, the stock has gained 6.5% against the industry’s decline of 4%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Exelon Corporation EXC, The AES Corporation AES and Consolidated Edison ED, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.EXC’s long-term earnings growth rate is 5.99%. The Zacks Consensus Estimate for 2025 EPS has moved up by 1.14% in the past 60 days.AES’ long-term earnings growth rate is 3.32%. The Zacks Consensus Estimate for 2025 EPS has moved up by 5.94% in the past 60 days.ED’s long-term earnings growth rate is 5.57%. The Zacks Consensus Estimate for 2025 EPS reflects year-over-year growth of 4.07%. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want 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 Consolidated Edison Inc (ED): Free Stock Analysis Report The AES Corporation (AES): Free Stock Analysis Report National Grid Transco, PLC (NGG): 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