10 Best Fundamentally Strong Penny Stocks to Invest In

2) Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG)

Stock Price as of 4 November: $1.97

3-Year Revenue Growth: 10.4%

3-Year Net Income Growth: 12.2%

Average Upside Potential: ~21%

Number of Hedge Fund Holders: 13

Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) is engaged in the generation, transmission, distribution, and sale of energy in Brazil.

As per Wall Street analysts, Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) continues to focus on efficiency, customer-centricity, and investment in regulated sectors, including higher investments in distribution, transmission, and natural gas. It also focuses on infrastructure development and energy transition. Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) emphasized improving power supply quality and reducing power outages. It is also investing in energy transition, with hydrogen as a critical component.

The company plans to continue its investment strategy, mainly in regulated businesses within Minas Gerais. Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG) demonstrated consistent growth and profitability over the past 3 years, with a strong focus on customer-centricity and efficiency. Wall Street believes that its investments in infrastructure should improve power supply reliability and support energy transition.

Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG)’s strategic approach remains focused on improving service quality and increasing investments in important sectors. With a clear emphasis on the future, the company has positioned itself to play an important role in Brazil’s energy transition and infrastructure development.

Fitch Ratings is optimistic about Companhia Energética de Minas Gerais – CEMIG (NYSE:CIG). This optimism stems from a strong and diversified asset base, with positive operating performance and healthy operational cash generation in the Brazilian power sector. These factors, together with operations in different segments of the power sector, should help in diluting business and regulatory risks.