Analysts' Revenue Estimates For ALLETE, Inc. (NYSE:ALE) Are Surging Higher
Shareholders in ALLETE, Inc. (NYSE:ALE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from ALLETE's six analysts is for revenues of US$1.8b in 2023 which - if met - would reflect a modest 4.0% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.6b of revenue in 2023. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.
See our latest analysis for ALLETE
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ALLETE's past performance and to peers in the same industry. It's clear from the latest estimates that ALLETE's rate of growth is expected to accelerate meaningfully, with the forecast 5.3% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ALLETE is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow approximately in line with the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at ALLETE.
Looking for more information? At least one of ALLETE's six analysts has provided estimates out to 2025, which can be seen for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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