0

National Grid - NGG Stock Forecast, Price & News

PUBLISHED Dec 31, 2022, 4:57:54 PM        SHARE

img
imgMuhammad Shoaib

As per my research, I recommend a buy rating for National Grid plc (NYSE: NGG). At today's $60.84, the utility stock is 42.8% undervalued from its estimated intrinsic value of $140.61. This is an excellent opportunity for a potential investor to consider adding the stock to their portfolio. The key concerns are:

  • Over the next 52 weeks, National Grid PLC has, on average, historically risen by 3.9% based on the past 23 years of stock performance.

  • In 14 of those 23 years, National Grid PLC has increased over the 52 weeks, yielding a historical accuracy of 60.87%.

  • The price of a share of National Grid PLC [NGG] currently is $60.84. The NGG score, which is 34, is 32% lower than the historical median score of 50 and suggests a higher risk than usual.

  • Regarding its historical Stock Score levels, NGG is trading in the 30–40% percentile range.

  • NGG Over-Valued at $154.67

  • NGG Fair-Value Estimate: $140.61

  • NGG Under-Valued at $126.55

Source: Yahoo Finance

Read More: Top utility stocks, How to assess a utility stock, How to screen for utility stocks, Top electrical stocks

Valuation of NGG

As of Q4 2022, National Grid has the following key metrics:

  • Earnings Per Share: $3.25

  • Book Value per Share: $35.51

  • Earnings Growth (YoY): Volatile

National Grid (NGG) Price Forecast

  • 2024 Price Forecast: $194.89

  • 2026 Price Forecast: $273.35

News

National Grid plc (LSE: NG) has agreed to sell DT Midstream, Inc. (NYSE: DTM) an additional 26.25% ownership interest in Millennium Pipeline in exchange for about $550 million on September 29, 2022. At closing, DT Midstream will own 52.50% of Millennium Pipeline. Cash in hand and available credit will fund the entire transaction.

The Board of Directors of DT Midstream has given its approval to the deal. The Hart-Scott-Rodino Antitrust Improvements Act waiting for the period's expiration or termination and other customary closing conditions must be satisfied before the transaction can be completed. The deal is anticipated to be finalized in the fourth quarter of 2022.

National Grid plc (LSE: NG.) has acquired Western Power Distribution plc from PPL WPD Investments Limited.

On March 17, 2021, National Grid plc (LSE: NGG) and PPL WPD Limited entered into a sale and purchase agreement. The agreement for PPL WPD Investments Limited (WPD) to be purchased for $7.8 billion. With the assumption of about 6.6 billion in debt, the consideration for the Western Power Distribution (WPD) acquisition is 7.8 billion in cash to be paid at closing. A daily ticking fee of 548,000 per day from January 1, 2021, until completion is due from National Grid Holdings because the consideration is subject to a locked box mechanism.

PPL and National Grid agreed to buy Narragansett Electric Company for $2.7 billion in equity in a related deal. The initial funding for the WPD Acquisition will come from bridge financing facilities for $8.25 billion, which will be used to pay for both the purchase of WPD and the refinancing of some of its debt. The money from the NECO Sale, the NGG Sale, and the issuance of new senior debt and hybrid capital securities, as necessary, will be used to repay this gradually.

UK's National Grid is selling Macquarie a 60% stake in its gas unit.

National Grid is a UK-based utility company that operates the high-voltage electricity transmission system in England and Wales and the natural gas distribution network in Great Britain. National Grid may have decided to sell a stake in its gas unit to Macquarie, a global investment bank and financial services company. It's also possible that the sale has already taken place or that it is still in the process of being negotiated. More information makes it easier for me to provide a more detailed response.

National Grid plc announces Mark Williamson's resignation as CEO

National Grid plc. Competitors

Some of the competitors in the electricity and gas utility industry include:

  • EDF Energy: A British electricity company that generates, transmits, and distributes electricity and gas.
  • Scottish Power: A Scottish electricity and gas company that generates, transmits, and distributes electricity and gas in the UK and Spain.
  • Centrica: A British multinational utility company that supplies electricity and gas to homes and businesses in the UK and North America.
  • SSE plc: A British multinational utility company that generates, transmits, and distributes electricity and gas in the UK and Ireland.
  • EON: A German multinational electricity and gas company that generates transmits, and distributes electricity and gas in Europe and North America.
  • RWE: A German multinational utility company that generates, transmits, and distributes electricity and gas in Europe and North America.
  • Enel: An Italian multinational electricity and gas company that generates transmits, and distributes electricity and gas in Europe, North America, South America, and Africa.
  • Iberdrola: A Spanish multinational electricity and gas company that generates transmits, and distributes electricity and gas in Europe and the Americas.
  • ENGIE: A French multinational electricity and gas company that generates transmits, and distributes electricity and gas in Europe, North America, and South America.
  • Fortum: A Finnish multinational electricity and gas company that generates transmits, and distributes electricity and gas in Europe and Russia.

FAQs

Is it a good time to buy National Grid shares?

Shares of National Grid are very well-liked by investors. The share price has nearly doubled over the past five years, and the company has been paying out some very sizable dividends. There is a lot to be joyful about.

Why is National Grid falling?

As investors worry about the possibility of windfall taxes, the share price of the National Grid (LSE: NG) has fallen recently. Therefore, the power grid operator is 1% less expensive than at the start of 2022. Given the firm's strong defensive attributes, this modest reversal may come as a surprise.

Is NGG a good dividend stock?

Every Share of NGG receives a $3.12 dividend. The dividend yield of NGG is 5.13% per year. The dividend paid by National Grid is higher and lower than the US's 4.33% industry average and 5.33% market average.

NGG, Buy

National Grid Plc
Return: 13.94%

NGG, Buy

Return: 13.94%


Sound investments
don't happen alone

Find your crew, build teams, compete in VS MODE, and identify investment trends in our evergrowing investment ecosystem. You aren't on an island anymore, and our community is here to help you make informed decisions in a complex world.

More Reads
Will AI Replace Crypto Jobs?
Image

Find out in this article if AI will replace Crypto Jobs.

What are the Highest Dividend Utility Stocks
Image

Find out about the Highest Dividend Utility Stocks in this article.

What are the Top Renewable Energy Utilities?
Image

Find out about the Top Renewable Energy Utilities

How to Analyze Stocks Using a Stock Selection Guide
Image

In this article, we'll walk through the steps of using an SSG and discuss tips for effectively using the analysis.

How to Get Your Stock Analysis on a StockBossUp Topics Page
Image

The topics pages get significantly more views for the articles on them. In this article, we show you how you can get your stock analysis on to a topics page.

The Three Pillars of Successful Investment - Psychology (part 2)
Image

This is Part 2 of a 4 part article on the Psychology of investing (often skipped or overlooked).

Monthly Dividend Utility Stocks
Image

This article covers all we need to know about Monthly Dividend Utility Stocks.

Is Duke Energy a Buy?
Image

Find out if Duke is a Buy in this article.

What is a Stock Selection Guide?
Image

The Stock Selection Guide is a great stock picking methodology that uses a company's fundamentals to assess its investment viability.

Japan Surprises
Image

The Bank of Japan surprised everyone may lifting the 10-year yield curve cap to 0.50% from 0.25%.

The Top Value Investments
Image

These are the top value stock ideas picked by the top investors on the platform.

The Top Financial News and Analysis
Image

The top articles and commentary on recent and relevant financial, economic, and business news.

The Top Macroeconomic News and Analysis
Image

The articles and commentary on world macroeconomics that are relevant now

The Top Stocks Analyzed Using the Stock Selection Guide (SSG)
Image

These top stocks were analyzed using the stock selection guide and picked by the top investors on the platform.

The Year Winding Down
Image

Stock Market Commentary

Why is Book Value Important?
Image

Book value is a investment metric that new investors need to understand. Book value gives investors an insight into a stock's intrinsic value.

Is Entergy Corp a Buy?
Image

Entergy is trading at a significantly lower valuation than its competitors. As a result, the company is currently undervalued, and better to buy it. Read more.

Is Exelon a Buy?
Image

Exelon Corp. ( EXC ) is getting a lot of attention these days, with analysts and investors trying to figure out if the company is worthy. Read more!

META Lesson 2: Accounting Inconsistencies and Consequences
Image

In my last post I used Facebook's recent troubles to talk about the importance of corporate governance

How to Strengthen Your Four Walls of Budgeting
Image

When you are in debt, it may feel like you are digging yourself deeper with every dollar you spend. And as the bills start mounting and collection agencies are pressuring you to pay, it’s easy to panic and forget your priorities. However, knowing the four walls of budgeting can help remind you what is most important in your budget. So if you are having a hard time making ends meet, here are a few ways you can strengthen your four walls of budgeting and get closer to your financial goals.

Resources for Publishers
Resources for New Investors
Boosted with BossCoin