Alliant Energy (LNT) Surges 0.86% Intraday, Two-Day Rally Pushes 0.66% on Earnings, Energy Transition Trends

Alliant Energy (LNT) reached its highest level since the start of the month, surging 0.86% intraday on Dec. 20, extending a two-day rally that has pushed the stock up 0.66% over the period. The move reflects renewed investor confidence in the utility’s strategic positioning amid broader energy transition trends and steady earnings momentum.

The stock’s performance aligns with a 12% year-to-date gain as of December 2024, outpacing many peers in the defensive utilities sector. Analysts attribute this resilience to a combination of consistent earnings growth, regulatory tailwinds, and the company’s proactive alignment with decarbonization initiatives.

Alliant Energy’s focus on modernizing grid infrastructure and supporting electrification of industries—including data centers—has enhanced its appeal in a market increasingly prioritizing ESG (environmental, social, governance) criteria. These factors have positioned the firm to benefit from policy-driven investments in renewable energy and digital infrastructure, which are expected to drive long-term demand for electricity.

Valuation assessments remain mixed, highlighting divergent views on the stock’s fair value. A narrative model suggests the shares are 9.1% undervalued at $72, factoring in disciplined capital allocation and long-term growth potential from electrification trends. Conversely, a discounted cash flow analysis pegs fair value at $60.84, implying current levels may be mildly overvalued due to uncertainties around project execution and regulatory outcomes. Risks remain tied to delays in major infrastructure projects or shifts in policy support, which could temper earnings forecasts. Despite these challenges, the stock’s steady performance underscores its role as a dependable growth vehicle in a low-yield environment, balancing structural opportunities with inherent sector-specific risks.