Valued at a market cap of $16.2 billion, Alliant Energy Corporation (LNT) is a utility holding company that provides regulated electric and natural gas services. The Madison, Wisconsin-based company has a diversified fuel mix which consists of coal, natural gas, and renewable resources.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and LNT fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the utilities - regulated electric industry. The company is known for its customer-centric approach, prioritizing affordability, reliability, and innovation in energy services. With a strong commitment to reducing carbon emissions and expanding renewable energy capacity, Alliant is well-positioned for sustainable growth in the evolving energy sector.
This utility company is currently trading 5.1% below its 52-week high of $66.54, reached on Mar. 4. Shares of LNT have surged 6% over the past three months, outpacing the broader S&P 500 Index’s ($SPX) nearly 4.7% decline during the same time frame.
In the longer term, LNT has rallied 26.8% over the past 52 weeks, outperforming SPX’s 8.5% uptick over the same time frame. Moreover, on a YTD basis, shares of LNT are up 6.7%, compared to SPX’s 3.2% loss.
To confirm its bullish trend, LNT has been trading above its 200-day moving average since early May, 2024, with slight fluctuations. The stock has remained above its 50-day moving average since early February.
On Feb. 20, LNT released its mixed Q4 earnings results. Shares of the company rose 1.9% the following day as its adjusted earnings of $0.70 per share topped the consensus estimate of $0.68 and advanced 45.8% from the year-ago quarter. A strong 188.6% increase in its Interstate Power and Light Company’s (IPL) earnings contributed to its robust bottom-line growth. Additionally, a 3.1% reduction in operating expenses further supported profitability. Alliant also reported a notable 6.6% annual increase in total utility electric sales and a 7.2% growth in total utility gas sales, further adding to the uptick. However, while its revenue grew 1.6% year-over-year to $976 million, it fell short of analyst expectations.
LNT has lagged behind its rival, Ameren Corporation (AEE), which rallied 34.8% over the past 52 weeks and 10.7% on a YTD basis.
Given LNT’s recent outperformance, 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 $64.65 suggests a slight 2.4% premium to its current levels.
