Reasons to Add Pampa Energia Stock to Your Portfolio Right Away

Pampa Energia S.A. PAM benefits from its focus on maintaining asset quality and expanding its generation portfolio. The company also gains from its efforts to expand its operations in the generation, transmission and distribution of electricity in Argentina. Given its strong growth, PAM makes for a solid investment option in the utility sector.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment option at the moment.

PAM’s Growth Projections & Surprise History

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has moved up 67.2% to $11.20 in the past 90 days.

The Zacks Consensus Estimate for 2025 sales is pinned at $2.15 billion, indicating year-over-year growth of 14.7%.

The company delivered an average earnings surprise of 168.1% in the past four quarters.

PAM’s Liquidity

The current ratio of PAM at the end of first-quarter 2025 was 1.82, higher than its industry’s average of 0.77. A current ratio greater than one indicates that the company has enough short-term assets to liquidate to cover all short-term liabilities, if necessary.

Debt Position of PAM

Currently, PAM’s total debt to capital is 38.69%, better than the industry’s average of 62.5%.

The time-to-interest earned ratio at the end of the first quarter of 2025 was 4.1. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.

PAM’s Return on Equity (ROE)

ROE indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, Pampa Energia’s ROE is 15.29%, higher than the industry’s average of 10.05%. This indicates that the company has been utilizing its shareholders' funds more constructively (to generate income) than its peers in the electric power utility industry.

PAM Strengthens its Clean Power Generation

Pampa Energía is developing several wind energy projects in Argentina, with a focus on the Province of Buenos Aires. It has invested over $1 billion in developing 687 megawatts (MW) of wind energy since 2018. The company is committed to renewable energy as key part of its mission to be a leading efficient energy supplier.

During the first quarter of 2025, the company’s net power generation was 5,951 gigawatt-hours, comprising hydro, wind and thermal sources.

PAM’s Stock Price Performance

In the past three months, Pampa Energia’s shares have risen 6.9% compared with the industry’s 4.8% growth.

Other Stocks to Consider

A few other top-ranked stocks from the same industry are DTE Energy DTE, WEC Energy Group WEC and Evergy EVRG, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DTE’s long-term (three to five years) earnings growth rate is 7.64%. The Zacks Consensus Estimate for DTE’s 2025 EPS implies a year-over-year improvement of 5.9%.

WEC’s long-term earnings growth rate is 6.95%. The company delivered an average earnings surprise of 6.2% in the past four quarters.

EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 EPS implies a year-over-year increase of 5.9%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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