3 Buy-Rated Dividend Stocks: DRI, CPWR, WR
Westar Energy (NYSE: WR) shares currently have a dividend yield of 4.10%. Westar Energy, Inc., an electric utility, engages in the generation, transmission, and distribution of electricity in Kansas. The company has a P/E ratio of 14.05. The average volume for Westar Energy has been 825,000 shares per day over the past 30 days. Westar Energy has a market cap of $4.2 billion and is part of the utilities industry. Shares are up 16.7% year to date as of the close of trading on Monday. TheStreet Ratings rates Westar Energy as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the Electric Utilities industry average, but is less than that of the S&P 500. The net income increased by 7.1% when compared to the same quarter one year prior, going from $62.73 million to $67.19 million.
- WR's revenue growth trails the industry average of 16.8%. Since the same quarter one year prior, revenues slightly increased by 0.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- WESTAR ENERGY INC has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, WESTAR ENERGY INC increased its bottom line by earning $2.14 versus $1.96 in the prior year. For the next year, the market is expecting a contraction of 1.4% in earnings ($2.11 versus $2.14).
- The gross profit margin for WESTAR ENERGY INC is currently lower than what is desirable, coming in at 34.96%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 11.79% is above that of the industry average.
- You can view the full Westar Energy Ratings Report.
- Our dividend calendar.
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