Alliant Energy Benefits From Investments & Renewable Expansion

Alliant Energy Corporation LNT continues to benefit from investments on renewable energy and infrastructure upgrades. These initiatives help it to serve an expanding customer base effectively. Alliant Energy seeks to obtain adequate and timely rate relief to recover costs and maintain profitability.

However, this Zacks Rank #3 (Hold) company has to face risks related to its dependence on third-party assets for transmission activity.

Factors Acting in Favor of LNT

Alliant Energy’s earnings prospects look attractive due to ongoing additions to electric and natural gas customer volumes. Its geographic location and favorable regulatory developments bode well for the development of wind projects and long-term earnings growth.

The ongoing economic development in its service territories and increasing customer base are also creating fresh demand for utility services and boosting its performance.

Alliant Energy plans to invest substantially over the next four years to strengthen the electric and gas distribution network as well as add natural gas and renewable assets to the generation portfolio. The company raised its long-term capital expenditure guidance by 26% to $11.5 billion during 2025-2028. 

Its strong and flexible investment plans will support an 11% rate-base CAGR during the same period. More than 40% of Alliant Energy’s 2025 to 2028 capital expenditure plan includes investments in wind, solar and energy storage. These investments result in Alliant Energy having one of the cleanest generation assets in the country.

Challenges Faced by LNT

The company’s utility operations — IPL and WPL — use the interstate electric transmission system that they do not own or control. A fall in the performance of the third-party electric transmission system should limit Alliant Energy’s ability to transmit electricity within its service territories and adversely impact its operations. 

Increased competition from self-generation by large industrial customers, customer and third-party-owned generation (e.g., solar panels) and alternative energy sources can lower demand for its services in Iowa and Wisconsin.

LNT Stock’s Price Performance

In the past month, shares of the company have risen 1.8% compared with the industry’s 1.3% growth.

Stocks to Consider

Some better-ranked stocks from the same industry are CenterPoint Energy CNP, Evergy EVRG and DTE Energy DTE, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CNP’s long-term (three to five years) earnings growth rate is 7.76%. The Zacks Consensus Estimate for 2025 earnings per share (EPS) is pinned at $1.75, indicating a year-over-year increase of 8%.

EVRG’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2025 EPS is pinned at $4.03, implying  year-over-year growth of 5.8%.

DTE Energy’s long-term earnings growth rate is 7.64%. The Zacks Consensus Estimate for 2025 EPS is pinned at $7.24, suggesting a year-over-year improvement of 6%. 

 

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This article originally published on Zacks Investment Research (zacks.com).

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