Energy company Atlantic Power Corp. (NYSE: AT) has seen limited activity in recent weeks, due to HOLD ratings from some top analysts and uncertainty about the company’s earning potential. However, some top financial advisories are still recommending a buy on this stock, believing it’s poised for growth. Should you take a risk on this bargain energy stock?
Atlantic revenue declined -34.60% in 2018, and the company achieved a profit margin of just 15.91%. Inflated cost of goods sold along with increased competition in the energy sector was challenging for the company. This year, the earnings data is likely to be positive. The current consensus is that Atlantic will increase year over year revenue by 50%, compared to an average of 2.3% growth expected in the wider utility sector.
Atlantic isn’t just attractive because of its growth potential in 2019. It is also a strong bet for future energy. While the company derives most of its production from natural gas, it owns numerous renewable plants. Over 30% of the company’s generation projects utilize either hydro or biomass fuel sources. These sources have become cost competitive with natural gas and coal in recent years, which will benefit Atlantic in the future.
This stock is a bargain today and would be a strong addition to an alternative investment portfolio.
- 1 Year Price Growth: 44%
- YTD Price Growth: 44%
- 3 Month Price Growth: -1.21%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.