Valued at a market cap of $14.2 billion, Evergy, Inc. (EVRG) engages in the generation, transmission, distribution, and sale of electricity in the United States. The Kansas City, Missouri-based company generates electricity through coal, landfill gas, uranium, natural gas, and oil sources, as well as solar, wind, and other renewable sources.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and Evergy fits right into that category, with its market cap exceeding this threshold. The electric services company is known for its commitment to sustainability, affordability, and innovation and serves residences, commercial firms, industrials, municipalities, and other electric utilities.
EVRG is currently trading 5.8% below its 52-week high of $65.47, reached on Nov. 27. Shares of this utility company have increased marginally over the past three months, underperforming the broader S&P 500 Index’s ($SPX) 5.1% decline during the same time frame.
Moreover, in the longer term, EVRG has gained 19.1% over the past 52 weeks, lagging behind SPX’s 26.5% returns. However, on a six-month basis, shares of EVRG are up nearly 16.8%, outpacing SPX’s 10.2% gains over the same time frame.
To confirm its recent bearish trend, Evergy has been trading below its 50-day moving average since mid-December. Nonetheless, it has remained above its 200-day moving average since late April.
Shares of EVRG closed up for four consecutive trading sessions following its robust Q3 earnings release on Nov. 7. The company’s revenue increased 8.4% year-over-year to $1.81 billion, while its operating earnings of $2.02 per share, grew 7.4% from the year-ago quarter and surpassed the consensus estimates by 3.6%.
The company benefited from new retail rates, FERC-regulated investments, and growth in weather-normalized demand. Moreover, EVRG reaffirmed its full-year 2024 non-GAAP EPS guidance of $3.73 to $3.93 and established an adjusted EPS guidance of $3.92 to $4.12 for fiscal 2025.
EVRG has lagged behind its rival, NextEra Energy, Inc.’s (NEE) 20.2% gain over the past 52 weeks but has significantly outpaced NEE’s 1.4% decline over the past six months.
Despite Evergy’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 13 analysts covering it, and the mean price target of $64.20 suggests a 4.1% premium to its current levels.
