Analysts Remain Bearish on PNM Resources Despite 0.26% Increase in Stock Price

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PNM ($NYSE:PNM) Resources Inc. is a holding company with subsidiaries that provide electric and gas services in the Southwest United States. Yesterday, the company’s stock closed at $49.39, a 0.26% increase from its previous price of $49.26. Despite the small increase in stock price, most analysts remain bearish on the company’s prospects. Analysts cite several factors for their bearish outlook on PNM Resources Inc. The utility giant reported lower-than-expected earnings in its most recent quarter, and its outlook for the rest of the year is pessimistic.

Additionally, PNM Resources Inc. faces competition from other energy providers in the area, which could put a dent in its profits. Furthermore, the company has been slow to invest in renewable energy sources, which has been a major focus of the energy industry in recent years. In light of these factors, analysts believe that PNM Resources Inc.’s stock price will continue to struggle in the near future. It is unlikely that the company will experience any significant growth until it makes substantial investments in renewable energy sources and is able to more effectively compete with other utility providers.

Stock Price

The company opened at $49.3 per share and closed at $49.5, with media coverage still largely negative. This has been largely attributed to the company’s lack of growth and failure to meet analysts’ expectations. Analysts are still concerned about the company’s lack of growth, as well as its financial performance over the past few years. The company’s recent earnings report showed a significant decline in profits, which analysts believe could be a sign of more trouble ahead. The company’s leadership has been attempting to turn things around, but so far there have been limited results. They have implemented cost-cutting measures and other strategies, but these have yet to translate into meaningful growth or improvement in financial performance.

As such, analysts remain skeptical about the company’s long-term prospects and continue to recommend caution when considering an investment in PNM Resources. It remains to be seen whether PNM Resources can turn things around in the near future. The company is facing a number of challenges, including a weak market and continued pressure from investors and analysts. Until the company can show signs of improvement, investors should remain cautious and monitor the situation closely. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Pnm Resources. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Pnm Resources. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Pnm Resources. More…

Key Ratios Snapshot

Some of the financial key ratios for Pnm Resources are shown below. More…

VI Analysis

PNM RESOURCES is a company whose fundamentals reflect its long term potential. VI app’s star chart shows that PNM RESOURCES is strong in dividend, medium in growth, profitability, and weak in asset. This classification makes PNM RESOURCES a ‘cheetah’, a type of company that achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are looking for high returns but are willing to take on more risk may be interested in such companies. PNM RESOURCES has an intermediate health score of 4/10 with regard to its cash flows and debt, which indicates that the company is likely to sustain future operations in times of crisis. Overall, PNM RESOURCES is a company that showcases strong dividend potential, moderate growth and profitability, and weak asset performance. Investors who are comfortable with taking on additional risk for the chance of higher returns may be interested in this company. Despite its weak asset performance, PNM RESOURCES still has an intermediate health score which suggests that it is capable of sustaining future operations even in times of crisis. More…

VI Peers

PNM Resources Inc is an electric utility company that serves New Mexico and Texas. The company has two main subsidiaries: Public Service Company of New Mexico and Texas-New Mexico Power Company. PNM Resources is the holding company for these two subsidiaries. The company has a market capitalization of $2.79 billion and its shares are traded on the New York Stock Exchange under the ticker symbol PNM. The company’s main competitors are Rosseti PJSC, Portland General Electric Co, and Centrais Eletricas Brasileiras SA.

– Rosseti PJSC ($NYSE:POR)

General Electric Co is an American multinational conglomerate corporation headquartered in Boston, Massachusetts. As of 2018, the company operates through the following segments: Power, Renewable Energy, Oil & Gas, Aviation, Healthcare, Transportation, and Capital. The company has a market cap of 3.91B as of 2022 and a return on equity of 9.64%.

– Portland General Electric Co ($NYSE:EBR.B)

Centrais Eletricas Brasileiras SA is a Brazilian electric utility company. The company is involved in the generation, transmission, and distribution of electricity in Brazil. The company has a market cap of 23.13B as of 2022 and a Return on Equity of 9.75%. The company is headquartered in Rio de Janeiro, Brazil.

Summary

PNM Resources (PNM) has recently seen a slight 0.26% increase in stock price, but analysts remain bearish on the company. Media coverage of the company has been largely negative, with investors uncertain of its future prospects. The company has been the subject of various reports, including the risk of lower earnings due to falling demand for energy. Investors should carefully consider their options before investing in PNM Resources, as there is considerable uncertainty around its future performance.