Allete, Inc. (ALE) Buy or Sell Stock Guide

Last updated: Apr 12, '19

Are you looking for the analysis of Allete, Inc. (ALE) stock? Are you wondering what the bulls and the bears say about it?

If so, you came to the right place. In this stock guide, we will share with you 3 reasons to buy and 4 reasons to sell ALE stock. You’ll get a perspective on what the bulls and the bears say about it.

The analysis below may be also helpful to you if you have any of the following questions about ALE stock:

  • Is ALE a buy or a sell?
  • Should I sell or hold ALE stock today?
  • Is ALE a good buy / investment?
  • What are ALE analyst opinions, recommendations and ratings?

Let’s start with the bull case. Here are the reasons to buy ALE stock:

1. ALE quarterly revenue growth was 32.70%, higher than the industry and sector average revenue growth (4.29% and 4.79%, respectively). See ALE revenue growth chart.

2. ALE forward dividend yield is 2.86%, higher than the industry (1.20%) and sector (1.02%) forward dividend yields. See ALE forward dividend chart.

3. ALE PEG ratio (P/E adjusted for growth) is 3.85, and it’s low compared to its industry peers’ PEG ratios. See ALE PEG chart.

Now that you understand the bull case, let’s look at the reasons to sell ALE stock (i.e., the bear case):

1. ALE profitability is declining. The YoY profit margin change was -0.52pp. See ALE profitability chart.

2. ALE forward P/E ratio is 21.25, and it’s high compared to its industry peers’ P/E ratios. See ALE forward P/E ratio chart.

3. ALE Price/Sales ratio is 2.82, and it’s high compared to its industry peers’ P/S ratios. See ALE forward Price/Sales ratio chart.

4. ALE average analyst price target ($77.30) is below its current price ($81.35). See ALE price target chart.

Now let's look at the key statistics for ALE:

Metrics ALE
Price $80.25
Average Price Target / Upside $77.30 / -3.67%
Average Analyst Rating Sell
Industry Utilities - Regulated Electric
Sector Utilities
Number of Employees 1,889
Market Cap $4.11B
Forward P/E Ratio 20.77
Price/Book Ratio 2.74
PEG 3.79
Revenue (TTM) $1.50B
YoY Quarterly Revenue Growth 32.7%
Profit Margin 11.62%

What are your thoughts on ALE?

If you liked this analysis, check out Buy or Sell Stock Guides for other stocks.

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