The group enjoys upward revisions in earnings per share and growth prospects. Further, the company is low valued with an EV/Sales ratio estimated at 1.61x for 2013 compared to 2.29x for the sector.
Graphically, the trend is bearish in the medium and long term with well oriented moving averages. In a shorter term, the trend is bearish and prices are back to the USD 27.1 support, corresponding to the 50-day moving average. This threshold, if preserved, should be used as a stepping stone, in order to reach USD 28.6.
The USD 27.1 area could be a basis for a purchase to target USD 28.6. A stop loss will be fixed below the support to limit risks.
MDU Resources Group, Inc. is engaged in regulated energy delivery and construction services businesses. Its segments include Electric, Natural gas distribution, Pipeline, Construction services, and Other. The Electric segment generates, transmits and distributes electricity. The Natural gas distribution segment distributes natural gas. The Pipeline segment provides natural gas transportation and underground storage services through a regulated pipeline system in the Rocky Mountain and northern Great Plains regions of the United States. The Construction services segment provides a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services across the United States. Its Other segment includes the activities of Centennial Capital, which, through its subsidiary InterSource Insurance Company, insures various types of risks as a captive insurer for certain of the Company's subsidiaries.