NorthWestern Energy (NWE): Is The Recent Share Price Momentum Justified By Its Valuation?
NorthWestern Energy Group (NWE) has quietly outpaced many utility peers this year, with the stock up about 31% over the past year and roughly 24% year to date, catching income-focused investors attention.
See our latest analysis for NorthWestern Energy Group.
The latest leg higher has been driven more by a gradual shift in risk perception than by any single headline. The 90 day share price return of 17.23 percent and the 1 year total shareholder return of 31.10 percent suggest that momentum is still building rather than fading.
If NorthWestern Energy’s steady climb has piqued your interest in income friendly defensives, it could be worth exploring stable growth stocks screener (None results) as a way to uncover similar ideas.
Yet with NorthWestern now trading above consensus analyst targets despite only modest growth, investors face a key question: is this defensively tilted utility still undervalued, or is the market already pricing in its future gains?
Most Popular Narrative: 5.7% Overvalued
NorthWestern Energy Group’s most followed narrative pegs fair value at about 62.20 dollars, slightly below the 65.74 dollar last close, framing an already optimistic move.
The 2.7 billion dollar capital investment plan for 2025 to 2029 is viewed as a key driver of future earnings and cash flow, with incremental upside possible from additional generation, transmission, or strategic projects if they are structured on attractive regulatory terms.
Want to see what kind of long term earnings path and profit margins are baked into that spending spree, and how rich a future multiple it assumes? Read on to uncover the precise financial storyline behind that fair value call.
Result: Fair Value of $62.20 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, lingering uncertainty around Colstrip coal exposure and heavy, debt funded capex means that unfavorable regulatory rulings could quickly upend today’s confident growth script.
Find out about the key risks to this NorthWestern Energy Group narrative.
Build Your Own NorthWestern Energy Group Narrative
If you prefer to test the assumptions yourself and challenge this storyline with your own research, you can build a fresh view in under three minutes: Do it your way.
A great starting point for your NorthWestern Energy Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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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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