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Allete Hits 52-Week High on Returns from Steady Investment
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Share price of Allete, Inc. (ALE - Free Report) hit a new 52-week high of $73.52, eventually closing a tad lower at $73.15 on May 26. The stock has delivered a one-year return of about 31.5% compared with the Zacks categorized Utility - Electric Power industry’s gain of 6.6%.
In the last 52 weeks, Allete‘s share price has ranged from a low of $56.48 to a high of $73.52. Average volume of shares traded in the last three months is approximately 234.4 thousand.
Factors behind the Performance
Allete‘s shares have been on the rise following strong first-quarter 2017 results that were declared on May 5. The company posted earnings per share of 97 cents, beating the Zacks Consensus Estimate of 95 cents by 2.1%. Reported earnings were up by 4.3% year over year.
The company has been a consistent performer, having delivered positive earnings surprises in three out of the trailing four quarters with average surprise of 6.3%. The long-term earnings growth of the company is presently pegged at 6.10%.
Allete will benefit from two announced wind projects – a project expansion of up to 50 megawatts for Montana-Dakota Utilities Co. and a new 100 megawatt wind energy facility to be built and operated to service a long-term PPA with Xcel Energy Inc.(XEL - Free Report) These projects are likely to drive earnings growth in the near future.
The company's investment in the American Transmission Co. (ATC) projects $3.6–$4.4 billion investment through 2024.
The Great Northern Transmission Line Initiative that is anticipated to be complete by 2020 will enhance regional reliability and promote a greater exchange of sustainable energy.
The company’s total capital expenditure from Regulated Utility Operations, Regulated Utility Capital Expenditures and others in between 2017 to 2021 is expected to be around $1,415 million. With significant and growing portfolio of renewable assets, the company is well positioned to fund future growth initiatives.
Algonquin Power & Utilities reported a positive earnings surprise of 11.76% in first-quarter 2017. Its current quarter 2017 estimates have risen by 25% to 10 cents per share in the last 30 days.
Avangrid reported a positive earnings surprise of 7.35% in first-quarter 2017. Its 2017 estimates have risen by 0.5% to $2.21 per share in the last 60 days.
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Allete Hits 52-Week High on Returns from Steady Investment
Share price of Allete, Inc. (ALE - Free Report) hit a new 52-week high of $73.52, eventually closing a tad lower at $73.15 on May 26. The stock has delivered a one-year return of about 31.5% compared with the Zacks categorized Utility - Electric Power industry’s gain of 6.6%.
In the last 52 weeks, Allete‘s share price has ranged from a low of $56.48 to a high of $73.52. Average volume of shares traded in the last three months is approximately 234.4 thousand.
Factors behind the Performance
Allete‘s shares have been on the rise following strong first-quarter 2017 results that were declared on May 5. The company posted earnings per share of 97 cents, beating the Zacks Consensus Estimate of 95 cents by 2.1%. Reported earnings were up by 4.3% year over year.
The company has been a consistent performer, having delivered positive earnings surprises in three out of the trailing four quarters with average surprise of 6.3%. The long-term earnings growth of the company is presently pegged at 6.10%.
Allete will benefit from two announced wind projects – a project expansion of up to 50 megawatts for Montana-Dakota Utilities Co. and a new 100 megawatt wind energy facility to be built and operated to service a long-term PPA with Xcel Energy Inc.(XEL - Free Report) These projects are likely to drive earnings growth in the near future.
The company's investment in the American Transmission Co. (ATC) projects $3.6–$4.4 billion investment through 2024.
The Great Northern Transmission Line Initiative that is anticipated to be complete by 2020 will enhance regional reliability and promote a greater exchange of sustainable energy.
The company’s total capital expenditure from Regulated Utility Operations, Regulated Utility Capital Expenditures and others in between 2017 to 2021 is expected to be around $1,415 million. With significant and growing portfolio of renewable assets, the company is well positioned to fund future growth initiatives.
Allete, Inc. Price and Consensus
Allete, Inc. Price and Consensus | Allete, Inc. Quote
Stocks to Consider
Allete currently carries a Zacks Rank #3 (Hold). Investors can consider better-ranked stocks from the same industry like Algonquin Power & Utilities Corp. (AQN - Free Report) and Avangrid, Inc. (AGR - Free Report) . Both these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Algonquin Power & Utilities reported a positive earnings surprise of 11.76% in first-quarter 2017. Its current quarter 2017 estimates have risen by 25% to 10 cents per share in the last 30 days.
Avangrid reported a positive earnings surprise of 7.35% in first-quarter 2017. Its 2017 estimates have risen by 0.5% to $2.21 per share in the last 60 days.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>.