Is Hawaiian Electric Industries (HE) the Best Single Digit Stock to Buy Now?

Hawaiian Electric Industries (HE), the parent company of Hawaii's largest electric utility, has been making strategic moves in recent years, including the sale of its banking subsidiary, American Savings Bank. These decisions have had an impact on the company's financial performance, but analysts remain optimistic about its future prospects. With a current stock price of $8.91 and an average 12-month price target of $10.67, HE offers an attractive opportunity for investors seeking exposure to the utility sector.



HE's recent financial performance has been mixed, with revenue and earnings growth fluctuating in recent years. In 2023, the company's revenue decreased by 1.60% compared to the previous year, while earnings fell by 17.38%. However, analysts have a positive outlook on the company's stock, with an average rating of "Hold" and a 12-month stock price forecast of $10.67, which represents an increase of 19.75% from the current price.



One of the key factors driving HE's recent performance is the sale of American Savings Bank. The deal, which closed in September 2024, involved the sale of a 90.1% stake in the bank to separate agreements. While the sale contributed to a decline in HE's revenue and earnings, it also helped the company resolve a nearly $2 billion settlement related to the Maui wildfires. This settlement has given more certainty to HE's outlook and may have contributed to the positive analyst forecasts for the company's stock.



HE's strategic decisions, such as the sale of American Savings Bank, have had an impact on its financial performance. However, the company's long-term prospects remain positive, with analysts expecting steady growth in revenue and earnings. The company's focus on renewable energy sources and potential sources, such as wind, solar, photovoltaic, geothermal, wave, hydroelectric, municipal waste, and other biofuels, positions it well for the future.



In conclusion, Hawaiian Electric Industries (HE) offers an attractive opportunity for investors seeking exposure to the utility sector. While the company's recent financial performance has been mixed, analysts remain optimistic about its future prospects. HE's strategic decisions, such as the sale of American Savings Bank, have had an impact on its financial performance, but the company's long-term prospects remain positive. With a current stock price of $8.91 and an average 12-month price target of $10.67, HE offers an attractive opportunity for investors seeking steady growth in the utility sector.