8 Most Profitable Penny Stocks To Invest In

4. Companhia Energetica Minas Gerais (NYSE:CIG)

TTM Net Income: $1.1 billion 

5-Year Net Income CAGR: 7.47% 

Share Price as of October 9: $1.99

Number of Hedge Fund Holders: 13

Companhia Energetica Minas Gerais (NYSE:CIG) is one of the main electricity concessionaires in Brazil. It operates in various areas of the electricity sector, including power generation, transmission, distribution, gas, and other businesses, generating electricity from sources like hydroelectric, thermal, and wind power plants. It transmits and distributes electricity to residential, commercial, and industrial customers, and participates in natural gas distribution and energy efficiency through its subsidiary, Efficientia.

Gasmig, a subsidiary, has started the Centro-Oeste Project, constructing 300 kilometers of pipeline with a budget of ~$140 million. For 2024, the company plans to invest over $1 billion, with over $2 billion already allocated.

The company’s revenue declined 3.84% year-over-year, recording $1.73 billion. Recurring EBITDA marked a 2% increase. Its strong operating cash flow in the first half of 2024 supports its financial stability and ability to manage debt, fund investments, and distribute dividends. Renewable energy is a key growth area. The company’s investments in renewable energy in the first half of 2024 were up 43.1% from the previous year. The launch of photovoltaic solar plants in June 2024 marks a significant expansion into renewable sources.

Companhia Energetica Minas Gerais (NYSE:CIG) is a promising investment with strong momentum, financial performance, and growth prospects in the energy sector. Its focus on renewable energy and infrastructure projects positions it well for continued success.