Here's Why You Should Include UGI Stock in Your Portfolio Right Away

UGI Corporation’s UGI planned investments should help upgrade and replace its aging infrastructure and boost its overall performance. Given its growth opportunities and strong return on equity (ROE), UGI 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 pick at the moment.Growth Projections & Surprise History of UGIThe Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has moved up 3.3% in the past 60 days to $3.13. The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $7.81 billion, indicating a year-over-year increase of 8.4%.  UGI’s long-term (three to five years) earnings growth rate is 5.2%. The company delivered a trailing four-quarter average earnings surprise of 75.7%.UGI’s LiquidityThe company’s current ratio of 1.23 is better than the industry’s average of 0.63. 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.UGI’s ROE Better Than IndustryROE indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, UGI’s ROE is 16.21%, higher than the industry’s average of 9.24%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility gas distribution industry.UGI’s Debt PositionCurrently, UGI’s total debt to capital is 58.34%, better than the sector’s average of 59.23%. The time-to-interest earned ratio at the end of the fiscal second quarter of 2025 was 2.5. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.UGI’s Dividend HistoryThe consistently strong performance of the company has enabled it to reward its shareholders through annual dividend rate hikes. UGI has been paying dividends for the past 141 years. Currently, its quarterly dividend is 37.5 cents per share, resulting in an annualized dividend of $1.50. The CAGR for UGI’s 10-year dividend is 6% for fiscal 2014-2024. The company’s current dividend yield of 4.1% is better than the industry’s average of 3.28%.UGI’s Benefits From Strategic InvestmentsUGI continues to make systematic capital investments to address various capital projects, increase the safety and reliability of natural gas production and storage facilities, and replace aging infrastructure to modernize the system. These additions and upgrades allow it to serve the expanding customer base efficiently. The company has added more than 6,600 residential heating and commercial customers to the Utilities year to date.UGI plans to invest $800-$900 million in fiscal 2025 to strengthen its operations, and $3.7-$4.1 billion through fiscal 2027. These investments will assist it in achieving the long-term annual EPS growth target of 4-6%UGI’s Share Price PerformanceIn the past month, shares of the company have risen 6% compared with the industry’s 1.9% growth. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Southwest Gas SWX, MDU Resources Group MDU and New Jersey Resources NJR, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.SWX’s long-term earnings growth rate is 9.87%. The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 17.7%.MDU’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS indicates year-over-year growth of 5.6%. The Zacks Consensus Estimate for NJR’s fiscal 2025 EPS implies year-over-year growth of 9.9%. The consensus mark for fiscal 2025 sales indicates an increase of 8.96% from the top line reported in fiscal 2024.  7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Southwest Gas Corporation (SWX): Free Stock Analysis Report UGI Corporation (UGI): Free Stock Analysis Report MDU Resources Group, Inc. (MDU): Free Stock Analysis Report NewJersey Resources Corporation (NJR): 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