Is Otter Tail (OTTR) Fairly Valued As Its September Earnings Approach?

Otter Tail (OTTR) heads into its September 2026 quarterly report with an unusual mix of signals. Earnings are expected to decline year over year, even as revenue is projected to be higher.

Recent trading has been steady rather than dramatic, with a 7 day share price return of 1.35% and a year to date share price gain of 10.58%. This leaves Otter Tail at US$90.07, while the 1 year total shareholder return of 18.96% points to momentum that has cooled slightly over the past quarter as investors weigh rising revenues against expectations for weaker quarterly earnings.

Compare Otter Tail's setup with a curated group of utilities and industrials that have sturdy earnings profiles and cleaner balance sheets using our 30 resilient stocks with low risk scores

That small pullback over the past 90 days sits awkwardly against Otter Tail’s near US$90 price tag and a price target that is barely higher. So where does a reasonable fair value range really land?

Most Popular Narrative: Fairly Valued

At a last close of $90.07 against a most-followed fair value estimate of $90.50, Otter Tail is framed as essentially in line with that narrative. This view hinges on how its utility investment plan and plastics reset play out over time.

The current narrative that Otter Tail is fairly valued and bullish implies the share price already reflects continued delivery on utility growth, a gradual normalization of plastics earnings and the company’s ability to fund its plan without issuing new equity.

See why 2 investors see Otter Tail as 0% undervalued.

Result: Fair Value of $90.50 (ABOUT RIGHT)

Still, the fair value story for Otter Tail can shift quickly if plastics pricing resets more harshly than expected, or if further PVC related legal or financing pressures emerge.

Find out about the key risks to this Otter Tail narrative.

Another View: Otter Tail Looks Rich On Cash Flows

There is a snag in the fair value story for Otter Tail. The SWS DCF model puts the stock’s future cash flow value at $72.92 per share, while the current price is $90.07. That gap points to an overvalued reading on this framework. Which signal would you trust?

For readers who want to see how this cash flow based view is built step by step, take a closer look at the Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Otter Tail for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 29 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals on Otter Tail can feel messy, especially with both risks and bright spots in the story. Act quickly, review the data for yourself, and pressure test your thesis against the 1 key reward and 5 important warning signs.

Looking for more investment ideas beyond Otter Tail?

If Otter Tail has you thinking harder about risk, return, and price, use that momentum and line up your next watchlist candidates today.

• Target resilient balance sheets and steady fundamentals by scanning our list of solid balance sheet and fundamentals (24 results) for potential core holdings you may be overlooking.
• Chase value with discipline by reviewing the 29 high quality undervalued stocks that combine quality fundamentals with room for a better entry price.
• Upgrade your income shortlist by tracking the 5 dividend fortresses that aim to pair higher yields with more robust financials.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com