We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Add ALLETE (ALE) to Your Portfolio Now
Read MoreHide Full Article
ALLETE Inc. (ALE - Free Report) , an energy company, is focused on providing competitively-priced energy, making consistent investments in infrastructure and clean energy.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for ALE’s 2023 earnings per share (EPS) is pegged at $3.67, increasing 1.1% in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $1.79 billion, indicating a year-over-year improvement of 13.9%.
The company’s long-term (three to five-year) earnings growth is pegged at 8.1%.
Debt Position
ALLETE’s total debt to capital was 34.73% as of Jun 30, 2023, which is better than the industry’s average of 59.36%.
The current ratio of ALE was 1.17 as of Jun 30, 2023, compared with the industry’s 0.83. This implies that the company is able to meet its short-term debt with its current assets.
Dividend History
The utility company has been consistently paying dividends to its shareholders. ALLETE’s current quarterly figure is 68 cents per share, resulting in an annual payout of $2.72. The company raised its dividend five times in the past five years.
ALE’s current dividend yield is 4.94%, better than the Zacks S&P 500 Composite’s 1.66%.
Focus on Clean Energy
ALLETE plans to add 700 megawatts (MW) of wind and solar and 500 megawatt-hours of battery storage to its portfolio.
The ALLETE Clean Energy already has a renewable platform of 1500 MW. ALLETE’s unit, Minnesota Power, aims to be 100% carbon-free by 2050. It has successfully retired seven of its nine coal facilities.
Price Performance
In the past year, shares of ALE have lost 10.2% compared with the broader industry’s 20% decline.
The Zacks Consensus Estimate for Vistra’s 2023 EPS is pinned at $3.11, indicating a year-over-year improvement of 205.8%. The Zacks Consensus Estimate for 2023 sales suggests an increase of 46.2% from the 2022 figure.
PNM’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for 2023 sales implies an increase of 17.2% from the 2022 figure.
FirstEnergy’s long-term earnings growth rate is 6.4%. The Zacks Consensus Estimate for 2023 sales indicates an increase of 4.7% from the 2022 figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Add ALLETE (ALE) to Your Portfolio Now
ALLETE Inc. (ALE - Free Report) , an energy company, is focused on providing competitively-priced energy, making consistent investments in infrastructure and clean energy.
Let’s explore the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
Growth Projections
The Zacks Consensus Estimate for ALE’s 2023 earnings per share (EPS) is pegged at $3.67, increasing 1.1% in the past 60 days.
The Zacks Consensus Estimate for 2023 sales is pegged at $1.79 billion, indicating a year-over-year improvement of 13.9%.
The company’s long-term (three to five-year) earnings growth is pegged at 8.1%.
Debt Position
ALLETE’s total debt to capital was 34.73% as of Jun 30, 2023, which is better than the industry’s average of 59.36%.
The current ratio of ALE was 1.17 as of Jun 30, 2023, compared with the industry’s 0.83. This implies that the company is able to meet its short-term debt with its current assets.
Dividend History
The utility company has been consistently paying dividends to its shareholders. ALLETE’s current quarterly figure is 68 cents per share, resulting in an annual payout of $2.72. The company raised its dividend five times in the past five years.
ALE’s current dividend yield is 4.94%, better than the Zacks S&P 500 Composite’s 1.66%.
Focus on Clean Energy
ALLETE plans to add 700 megawatts (MW) of wind and solar and 500 megawatt-hours of battery storage to its portfolio.
The ALLETE Clean Energy already has a renewable platform of 1500 MW. ALLETE’s unit, Minnesota Power, aims to be 100% carbon-free by 2050. It has successfully retired seven of its nine coal facilities.
Price Performance
In the past year, shares of ALE have lost 10.2% compared with the broader industry’s 20% decline.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks in the same industry are Vistra Corp. (VST - Free Report) , PNM Resources Inc. and FirstEnergy Corp. (FE - Free Report) . VST sports a Zacks Rank #1 (Strong Buy) while PNM and FE carry a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Vistra’s 2023 EPS is pinned at $3.11, indicating a year-over-year improvement of 205.8%. The Zacks Consensus Estimate for 2023 sales suggests an increase of 46.2% from the 2022 figure.
PNM’s long-term earnings growth rate is 4.5%. The Zacks Consensus Estimate for 2023 sales implies an increase of 17.2% from the 2022 figure.
FirstEnergy’s long-term earnings growth rate is 6.4%. The Zacks Consensus Estimate for 2023 sales indicates an increase of 4.7% from the 2022 figure.