Emera: Buy, Sell, or Hold in 2025?

Emera stock has had a fairly turbulent year, but does that mean investors should take this opportunity to buy or beware?

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 11, 2025 11:45 am EDT

| More on: EMA

Emera (TSX:EMA), a prominent player in Canada’s utility sector, has been making waves lately. And not just for keeping our lights on. The energy stock recently released its 2024 financial results, showcasing a mixed bag of achievements and challenges. But does that mean the energy stock shouldn’t belong on your radar? Or could this now be the opportunity investors have been waiting for in 2025? Let’s dive into the stock and find out, shall we?

The sun sets behind a power source — Source: Getty Images

Into earnings

According to their report, Emera’s quarterly adjusted earnings per share (EPS) saw a commendable 33% increase during recent earnings, rising to $0.84 from $0.63 in Q4 2023. This uptick was largely attributed to solid performances across all regulated utilities.

However, it’s not all sunshine and rainbows. The energy stock’s full-year reported EPS took a hit, dropping to $1.71 from the previous year’s $3.57. This decline was primarily due to charges related to the pending sale of New Mexico Gas Company (NMGC) and decreased mark-to-market gains.

Despite these setbacks, Emera executed its largest annual capital plan to date, investing $3.2 billion and achieving a 7% rate base growth year over year. This substantial investment underscores the energy stock’s commitment to enhancing infrastructure and expanding its service offerings.

Future in focus

In regulatory news, Tampa Electric, one of Emera’s subsidiaries, successfully concluded a rate case, resulting in a 10.5% return on equity and a US$185 million increase in 2025 revenue. This outcome is expected to bolster the energy stock’s financial performance in the coming years.

Looking ahead, Emera has unveiled an ambitious $20 billion capital plan over the next five years. This plan focuses on improving reliability, modernizing the grid, and expanding infrastructure, particularly in Florida, positioning the company to capitalize on organic growth opportunities.

On the stock market front, Emera’s shares recently hit a new 52-week low, trading as low as $58.71. This dip has caught the attention of analysts and investors alike, prompting discussions about the stock’s future trajectory. Analyst opinions are mixed. Some adjusted earnings estimates for Emera, forecasting an EPS of $3.23 for FY2025, slightly up from the previous estimate of $3.22. The consensus estimate for the current full-year earnings stands at $3.20 per share.

Foolish takeaway

Despite the recent stock dip, Emera continues to reward its shareholders. The company declared a quarterly dividend of $0.725 per share, equating to an annualized dividend of $2.90 and a yield of approximately 4.93% at the time of writing. This move underscores Emera’s commitment to providing consistent returns to its investors.

So, while Emera faces certain challenges, including fluctuations in its stock price and earnings, the company’s strategic investments and robust capital plans indicate a forward-looking approach. Investors may want to keep an eye on how these developments unfold in the coming months. As always, it’s advisable to conduct thorough research and consider consulting a financial advisor before making any investment decisions. Yet, if you’re an investor seeking out a top stock to invest in for 2025, Emera stock could certainly belong on your radar, at least for now.