New Forecasts: Here's What Analysts Think The Future Holds For ALLETE, Inc. (NYSE:ALE)

ALLETE, Inc. (NYSE:ALE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's 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 most recent consensus for ALLETE from its four analysts is for revenues of US$1.5b in 2022 which, if met, would be an okay 2.3% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.4b of revenue in 2022. It looks like there's been a clear increase in optimism around ALLETE, given the nice increase in revenue forecasts.

See our latest analysis for ALLETE

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that ALLETE's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.1% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 2.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.6% per year. So it looks like 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. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at ALLETE.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concerns with ALLETE, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .

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.