Momentum Stock Watch: ALLETE, Inc. (ALE)

Company Profile:

ALLETE, Inc. operates as an energy company. It operates through Regulated Operations, ALLETE Clean Energy, U.S. Water Services, and Corporate and Other segments. The company generates electricity from coal-fired, solar, hydro, wind, natural gas-fired, biomass co-fired, and other sources, as well as shale resources. It provides regulated electric, natural gas, and water services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers, as well as regulated utility electric service in northeastern Minnesota to approximately 145,000 retail customers and 16 non-affiliated municipal customers. The company also owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. The company was founded in 1906 and is headquartered in Duluth, Minnesota.

Recent News:

On Aug. 3, 2016, ALLETE, Inc. reported second quarter 2016 earnings of 50 cents per share on net income of $24.8 million and operating revenue of $314.8 million. The Corporate and Other segment, which includes BNI Energy and ALLETE Properties, posted a net loss of $1.4 million for the quarter, compared to a net loss of $4.4 million in 2015.

The ALLETE, Inc. (ALE) board of directors has declared a quarterly dividend of 52 cents per share of common stock. On an annual basis the dividend is equivalent to $2.08 per share, unchanged from the previous quarter.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ALE’s strengths can be seen in its better growth, profitability, solvency and efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI is increasing to 49.58. We rate ALLETE, Inc. (ALE) a STRONG BUY.