Alliant Energy: No Longer The Time To Buy Now (Rating Downgrade)

Since my previous "Buy" rating, Alliant Energy has handily outperformed the S&P 500 index. Thanks to significant economic development in its service territories, the electric and gas utility’s four-year capital spending plan is much larger than it was when I last covered it. Alliant Energy enjoys a BBB+ S&P credit rating with a stable outlook. Shares are now trading at a roughly 8% premium to fair value. Alliant Energy looks positioned to deliver high single-digit percentage annual total returns through 2031. In the regulated utility realm, the Goldilocks combination of a fortress balance sheet with a clear, secular growth tailwind is appealing. Adding a much larger capital spending forecast to the mix, there’s a recipe for what appears to be multi-year compounding. This underlying strength has.