Madison, Wisconsin-based Alliant Energy Corporation (LNT) is a utility holding company operating in the regulated electric and natural gas services sector. With a market cap of $15.4 billion, the company serves customers in the Midwest through its subsidiaries, focusing on a diversified fuel mix and sustainable energy solutions.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks and Alliant Energy fits this criterion perfectly, exceeding the mark. Alliant Energy distinguishes itself in the market through its integrated approach to energy delivery, combining regulated utility services with a strong emphasis on renewable energy initiatives and customer-centric programs.
Despite a 1.3% dip from its 52-week high of $60.76 achieved on Sep. 24, the energy company has rebounded with an 18.6% increase in its share price over the past three months, which outperforms The Utilities Select Sector SPDR Fund’s (XLU) gain of 16.1% during the same period.
However, longer term, Alliant Energy’s shares have soared 16.9% on a YTD basis, lagging behind XLU's 26.6% gain. Furthermore, LNT's shares have risen 17.4% over the past 52 weeks, compared to XLU's 26.9% gains over the same time frame.
Yet, LNT has been trading above its 50-day and 200-day moving averages since June, indicating a bullish price trend.
Despite reporting lower-than-expected Q2 adjusted EPS of $0.57 and revenue of $894 million on Aug. 1, shares of Alliant Energy rose marginally the following day primarily due to the company's proactive strategy in securing multiple power supply agreements with data centers, highlighting increased electricity demand. Additionally, the market reacted positively to the company’s efforts to attract new customers and expand its service offerings in Iowa and Wisconsin despite the profit decline attributed to a settlement agreement related to its IPL unit's retail electric rate review.
In comparison, rival Ameren Corporation (AEE) has surged 19.4% on a YTD basis, outperforming LNT over the same period. But, over the past 52 weeks, Ameren has gained 8.5%, lagging behind LNT.
Despite LNT’s underperformance relative to the broader sector over the past year, analysts are moderately optimistic, with a consensus rating of "Moderate Buy" from 12 analysts. As of writing, it is trading slightly below the mean price target of $60.65.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
