2024-05-14 07:00:00 ET
Summary
- Since my buy rating in March, shares of MGE Energy have soared 29%.
- The company's operating revenue dipped as diluted EPS surged higher in the first quarter.
- MGEE's interest coverage ratio was very strong in the first quarter, supporting an AA- credit rating from S&P on a stable outlook.
- The electric and gas utility's shares could still be 10% undervalued.
- MGEE could have a realistic path to double-digit annual total returns through 2026.
In the market, sometimes you win and sometimes you lose. The former very much happened back in March with a utility that operates in my state less than 100 miles from where I live.
Seeking Alpha
It was at that time I initiated a buy rating on the Madison, Wisconsin-based electric and natural gas utility, MGE Energy ( MGEE ). Since that time, shares have rallied 29% to the mere 2% gains of the S&P 500 index ( SP500 )....
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For further details see:
MGE Energy: Now No Longer A Hidden Gem Utility