Why National Grid Stock Deserves a Spot in Your Portfolio Right Now
National Grid NGG stands to benefit from its strategic investment in infrastructure upgrades and expansion. Rising demand from new customer connections, along with its low-risk, high-quality assets, makes NGG an appealing investment opportunity in the Zacks Utility Electric Power industry.
Let us focus on the factors that make this Zacks Rank #1 (Strong Buy) company a strong investment pick at the moment.
NGG’s Earnings Growth Projection
The Zacks Consensus Estimate for NGG’s fiscal 2026 earnings per share (EPS) has increased 2.6% to $5.07 in the past 30 days.
The company’s (three to five years) earnings growth rate is pegged at 8.4%.
NGG’s Solvency
National Grid’s times interest earned ratio (TIE) at the end of fiscal 2025 was 3. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
NGG’s Drive Toward Clean Energy Goals
The company is enabling the energy transition for all and intends to achieve net-zero emissions by 2050. National Grid works together with its partners to speed up the transition to a clean energy future. In the United States, NGG has made considerable investments in large-scale renewable energy projects such as wind and solar.
NGG’s Strategic Investments and Customer Demand
National Grid has plans to invest nearly $69 billion (£60 billion) across its service territory in the United Kingdom and the United States over the next five years.
The company will benefit from increased demand resulting from new customer connections in its service zone. In total, 2.5 gigawatts (GW) of customer projects were connected to the transmission network this year, with 1.6 GW being renewables.
National Grid’s Dividend Yield
NGG has been consistently increasing shareholders’ value by paying dividends. The company's current dividend yield is 5.73%, up from the S&P 500 Composite's 1.18%.
NGG Stock Price Performance
In the past six months, NGG shares have risen 23.6% compared with its industry’s growth of 8.9%.
Other Stocks to Consider
A few other top-ranked stocks related to the same industry are Entergy Corporation ETR, NiSource Inc. NI and CenterPoint Energy CNP, each holding a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ETR’s long-term earnings growth rate is 9.5%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.88, which indicates a year-over-year improvement of 6.3%.
NI’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.88, which suggests a year-over-year rise of 7.4%.
CNP’s long-term earnings growth rate is 7.8%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, which calls for a year-over-year improvement of 8%.
This article originally published on Zacks Investment Research (zacks.com).
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