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Trade-Ideas LLC identified

Alliant Energy

(

LNT

) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alliant Energy as such a stock due to the following factors:

  • LNT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $47.2 million.
  • LNT has traded 488,453 shares today.
  • LNT traded in a range 275.9% of the normal price range with a price range of $1.39.
  • LNT traded above its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on LNT:

Alliant Energy Corporation operates as a utility holding company that provides regulated electricity and natural gas services to residential, commercial, industrial, and wholesale customers in the Midwest region of the United States. It operates through three segments: Electric, Gas, and Other. The stock currently has a dividend yield of 2.9%. LNT has a PE ratio of 24. Currently there are 2 analysts that rate Alliant Energy a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Alliant Energy has been 2.1 million shares per day over the past 30 days. Alliant Energy has a market cap of $9.1 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.48 and a short float of 3.2% with 4.57 days to cover. Shares are up 28.9% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alliant Energy as a

buy

. Among the primary strengths of the company is its solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:

  • Compared to its closing price of one year ago, LNT's share price has jumped by 32.01%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.4%. Since the same quarter one year prior, revenues slightly dropped by 6.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • ALLIANT ENERGY CORP' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, ALLIANT ENERGY CORP reported lower earnings of $1.69 versus $1.74 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.69).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Electric Utilities industry average, but is less than that of the S&P 500. The net income has decreased by 0.1% when compared to the same quarter one year ago, dropping from $99.20 million to $99.10 million.
  • The gross profit margin for ALLIANT ENERGY CORP is currently lower than what is desirable, coming in at 29.44%. Regardless of LNT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, LNT's net profit margin of 11.74% compares favorably to the industry average.

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