PPL to Gain From Steady Investment in Clean Energy & Infrastructure

PPL Corporation PPL has been benefiting from strategic investments in infrastructure development, including transmission and distribution projects and the construction of new clean-fuel-based generation plants, as it works toward achieving carbon neutrality by 2050.The company’s long-term (three to five years) earnings growth rate is projected at 7.34%.TailwindsPPL focuses on generation, transmission and distribution projects, which will strengthen its infrastructure. PPL’s subsidiary, PPL Electric, is also focused on increasing the reliability of its electricity supply services with the use of the Dynamic Line Rating (DLR) technology. PPL Electric was the first U.S. electric utility to integrate this technology into real-time and market operations.PPL has planned a systematic long-term capital investment of $20 billion during 2025-2028. The company is expected to invest $4.3 billion and $5.2 billion in 2025 and 2026, respectively.The investment is aimed at upgrading the grid, enhancing electricity and gas distribution, strengthening electricity transmission, and increasing clean energy generation capacity.PPL also focuses on incorporating new technology to support increasing demand from data centers, while diversifying its generation portfolio by adding more renewable sources.The decline in interest rates will be beneficial for the company as it will reduce the cost of long-term capital projects due to lower interest expenses.PPL plans to introduce new carbon capture technology to achieve its carbon emissions reduction targets of 70% by 2035 and 80% by 2040, from 2010 levels, and ultimately become carbon neutral by 2050.HeadwindsPPL is a holding company and operates entirely through its subsidiaries. All the assets are held by its subsidiaries, and income generation, debt repayment, and dividend obligations largely depend on those subsidiaries. If the subsidiaries underperform and are unable to distribute earnings, PPL’s financial results will be negatively affected.PPL’s Pennsylvania Regulated segment faces competition for transmission projects. Any delays or failures to complete long-term projects on time or within budget, as well as unforeseen cost increases or risks related to fully recovering project costs, could negatively impact its financials.Price PerformanceOver the past year, PPL shares have risen 3.0%, but lagged the industry’s growth of 19.0%.Zacks Rank & Stocks to ConsiderPPL currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry are Dominion Energy, Inc. D, Entergy Corporation ETR and PG&E Corporation PCG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Dominion Energy, Entergy and PG&E delivered an average earnings surprise of 12.72%, 14.30% and 0.47%, respectively, in the last four quarters.The Zacks Consensus Estimate for 2025 earnings per share of Dominion Energy and Entergy has moved up 0.29% and 0.26%, respectively, in the past 60 days.The consensus mark for PG&E’s 2025 EPS has remained constant at $1.50 over the same time frame. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum 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 PPL Corporation (PPL): Free Stock Analysis Report Entergy Corporation (ETR): Free Stock Analysis Report Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report Dominion Energy Inc. (D): 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