Wisconsin-based Alliant Energy Corporation (LNT) is a utility holding company that provides regulated electricity and natural gas services. Valued at a market cap of $15.1 billion, the company primarily operates through two wholly owned subsidiaries, which are Interstate Power and Light Company (IPL) and Wisconsin Power and Light Company (WPL).
Companies valued at over $10 billion are typically classified as “large-cap stocks,” and Alliant fits the label perfectly with its market cap exceeding this threshold. The public utility company provides regulated energy service to approximately one million electric and 425,000 natural gas retail customers across Iowa and Wisconsin.
The company has slipped 8.2% from its 52-week high of $64.19, achieved on Nov. 25. It has fallen 1.3% over the past three months, outperforming the broader Utilities Select Sector SPDR Fund’s (XLU) 4.6% decline over the same time frame.
Moreover, over the past six months, shares of LNT are up 15.6%, outpacing XLU’s 9.5% gains over the same time frame. However, over the past 52 weeks, LNT has gained 17.3%, lagging behind XLU’s 22.7% returns.
Yet, LNT has been trading below its 50-day moving average since early December. However, it has remained above its 200-day moving average since mid-June.
Shares of LNT plunged 3.8% after its Q3 earnings release on Oct. 31. The company’s net income improved 9.5% year-over-year to $1.15 per share and surpassed the consensus estimates of $1.11, while its revenue of $1.08 billion increased marginally from the year-ago quarter and slightly surpassed the forecasted figure.
Additionally, noting the average temperature in its service territories, execution of cost controls, and the consolidated effective tax rate of 15%, the company narrowed its full-year 2024 EPS guidance to a range of $2.99 to $3.06 per share.
Yet, LNT has outperformed its rival, American Electric Power Company, Inc. (AEP), which gained 15.5% over the past 52 weeks and 5.5% over six months.
Given Alliant Energy's recent outperformance relative to its industry peers, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 12 analysts covering it, and the mean price target of $63.15 suggests a modest 7.1% premium to its current levels.
