IDACORP, Inc. (IDA): A Bull Case Theory

The Utility Sector’s Hidden Growth Engine

Let’s talk about IDACORP, Inc. (IDA), a utility stock that’s quietly powering up in the background while most investors are busy chasing the next tech unicorn. If you’re looking for a stable, growth-oriented play in the utility sector, IDA might just be your next big win. But before you dive in, let’s debug the code behind this bull case.

The Regulated Utility Advantage: Stability in a Volatile Market

First, let’s talk about the elephant in the room—regulated utilities. Most people think of them as boring, slow-growth investments, but IDACORP is flipping that script. The company operates through its subsidiary, Idaho Power Company, serving a whopping 620,000 customers across southern Idaho and eastern Oregon. That’s a massive footprint, but more importantly, it’s a *regulated* footprint.

Here’s the tech analogy: Think of regulated utilities like a well-optimized database. The state commissions act as the database administrators, ensuring that rates are set fairly and consistently. This means IDACORP doesn’t have to worry about wild market swings—it’s got a steady revenue stream, like a well-tuned server farm humming along in the background.

Growth Drivers: Population Boom and Data Center Gold Rush

Now, let’s talk growth. IDACORP isn’t just sitting pretty with its existing customer base—it’s actively expanding. The Treasure Valley region, where IDACORP operates, is experiencing a population boom. More people = more demand for electricity. Simple, right?

But here’s where it gets interesting: Data centers. These energy-hungry beasts are flocking to the region, and IDACORP is right in the middle of the action. Data centers don’t just consume power—they *guarantee* long-term contracts. It’s like having a high-value, low-churn SaaS customer, but for utilities.

Renewable Energy: The Future-Proof Play

IDACORP isn’t just about traditional power—it’s also making big bets on renewable energy. Wind, solar, and hydro are all part of the mix, and the company is aggressively expanding its renewable portfolio. Why? Because regulators and customers are demanding cleaner energy, and IDACORP is positioning itself as a leader in this space.

The recent $450 million public offering in May 2025 is a clear sign that IDACORP is serious about scaling up. This isn’t just about being environmentally friendly—it’s about future-proofing the business. Think of it like upgrading your server infrastructure to handle the next wave of demand.

Financial Health: Strong Balance Sheet, Steady Growth

Let’s talk numbers. IDACORP’s trailing and forward P/E ratios are 21.72 and 20.83, respectively. Not dirt cheap, but not outrageous either—especially when you consider the growth potential. Analysts are bullish, and for good reason: The company has a strong balance sheet, consistent profitability, and a knack for generating cash flow.

This financial discipline is a hallmark of well-managed utilities. IDACORP isn’t loading up on debt to fuel growth—it’s funding its expansion organically, which reduces risk and keeps investors happy.

The Bottom Line: Why IDACORP is a Strong Buy

So, what’s the verdict? IDACORP is a regulated utility with a growth story. It’s got a stable revenue base, a growing customer footprint, and a strategic focus on renewable energy. The data center boom is a game-changer, and the company’s financial health is rock-solid.

Sure, no investment is without risk, but IDACORP is positioning itself as a leader in a sector that’s often overlooked. If you’re looking for a utility stock with growth potential, IDA is worth a serious look. The bull case is strong, and the company is executing on all fronts.

Now, if only we could get the Fed to hack interest rates like IDACORP is hacking growth. But that’s a story for another day.