Madison, Wisconsin-based Alliant Energy Corporation (LNT) operates as a utility holding company that provides regulated electricity and natural gas services. Valued at $16.8 billion by market cap, the company supplies electricity, natural gas, and water to residential and commercial customers.
Companies worth $10 billion or more are generally described as “large-cap stocks.” LNT effortlessly fits that bill, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the utilities - regulated electric industry. LNT’s focus on clean energy investments positions it for future growth, aligning with sustainable energy trends and enhancing service capabilities.
Despite its notable strength, LNT slipped 6.3% from its 52-week high of $69.75, achieved on Oct. 24. Over the past three months, LNT stock has gained marginally, mostly aligning with the Utilities Select Sector SPDR Fund’s (XLU) slight gains during the same time frame.
In the longer term, shares of LNT rose 6.2% on a six-month basis, outperforming XLU’s six-month gains of 4.6%. However, the stock climbed 8% over the past 52 weeks, underperforming XLU’s 10.4% returns over the last year.
To confirm the recent bearish trend, LNT has been trading below its 50-day moving average since early December. However, the stock has been trading above its 200-day moving average over the past year, experiencing slight fluctuations.
LNT's underperformance is mainly due to increased operating and maintenance expenses, depreciation, and financing costs.
On Nov. 6, LNT shares closed down marginally after reporting its Q3 results. Its adjusted EPS was $1.12, down 2.6% from the year-ago quarter. The company’s revenue stood at $1.2 billion, up 11.9% year over year. LNT expects full-year adjusted EPS in the range of $3.17 to $3.23.
LNT’s rival, Ameren Corporation (AEE), has lagged behind the stock, with marginal gains on a six-month basis but outpaced the stock with an 8.3% uptick over the past 52 weeks.
Wall Street analysts are reasonably bullish on LNT’s prospects. The stock has a consensus “Moderate Buy” rating from the 10 analysts covering it, and the mean price target of $72.11 suggests a potential upside of 10.4% from current price levels.
On the date of publication, Neha Panjwani 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.
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