PNM Resources Scales a 52-Week High - Analyst Blog

On Apr 14, 2014, the shares of diversified utility operator PNM Resources Inc. PNM soared to a 52-week high of $27.69, driven primarily by its ambitious capital program of $2.2 billion over the period 2014 to 2018, a positive regulatory environment and continued asset additions to the renewable energy basket. The shares finally closed at $27.53, up 0.6% from the previous day's closing.

The company reported robust earnings results in the fourth quarter 2013 owing to healthy sales in its service territories of New Mexico and Texas. Favorable weather conditions boosted the revenue stream.

PNM Resources' efforts on expanding its renewable asset base have been progressing well. With the current pulse in the U.S. market favoring green energy, the company's 2014 renewable energy plan in New Mexico will bode well for its future growth objectives.

In addition, PNM Resources has a stable operating cash flow position, which allows the company to consistently maintain an attractive dividend yield of 2.69%, higher than the industry average of 2.10%. The company's stable financial position is further attested by the upgrade in credit ratings by both Moody's and Standard & Poor's.

Currently, PNM Resources carries a Zacks Rank #3 (Hold). Other better-placed utility operators in the market are Zacks Ranked #1 (Strong Buy) Avista Corp. AVA, NRG Energy Inc. NRG and Public Service Enterprise Group Inc. PEG.