Group 1: Fund Performance - Parnassus Mid Cap Fund outperformed the Russell Midcap Index in Q4 2025, returning 1.17% net of fees compared to the index's 0.16% [1] - Year-to-date, the Fund achieved a return of 12.85% net of fees, exceeding the index's 10.60% return [1] - The Fund's performance was bolstered by investments in the Information Technology sector and holdings in Utilities [1] Group 2: CMS Energy Corporation Overview - CMS Energy Corporation is a Michigan-based energy company with a market capitalization of $23.66 billion, providing electricity and natural gas utility operations [2] - As of March 30, 2026, CMS Energy's stock closed at $77.21 per share, with a one-month return of -0.76% and a 52-week gain of 2.75% [2] Group 3: Investment Rationale for CMS Energy - The Fund added CMS Energy Corporation to its portfolio, citing a constructive regulatory environment and visibility for long-term growth [3] - CMS Energy is characterized as a stable, well-managed utility with a strong growth track record, supported by its capital investment plan [3] - The addition of CMS Energy enhances the portfolio's defensive positioning and addresses its underweight in Utilities [3] Group 4: Hedge Fund Interest - CMS Energy Corporation was held by 52 hedge fund portfolios at the end of Q4 2025, an increase from 42 in the previous quarter [4] - Despite recognizing CMS Energy's potential, the Fund suggests that certain AI stocks may offer greater upside potential and lower downside risk [4]

Company Overview - CMS Energy is headquartered in Jackson and operates in the Utilities sector, with a stock price change of 9.15% since the beginning of the year [3] - The company currently pays a dividend of $0.57 per share, resulting in a dividend yield of 2.99%, which is slightly above the Utility - Electric Power industry's yield of 2.97% and significantly higher than the S&P 500's yield of 1.5% [3] Dividend Performance - The current annualized dividend of CMS Energy is $2.28, reflecting a 5.1% increase from the previous year [4] - Over the past 5 years, CMS Energy has raised its dividend 5 times, achieving an average annual increase of 5.79% [4] - The company's current payout ratio is 60%, indicating that it distributes 60% of its trailing 12-month earnings per share as dividends [4] Earnings Growth and Future Outlook - For the fiscal year, CMS Energy anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $3.86 per share, representing a year-over-year growth rate of 6.93% [5] - The company is viewed as an attractive dividend option and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6]

Core Viewpoint - CMS Energy has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Rising earnings estimates for CMS Energy suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - CMS Energy's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions - CMS Energy is projected to earn $3.86 per share for the fiscal year ending December 2026, with a 0% year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for CMS Energy has increased by 0.2%, reflecting analysts' positive revisions [8].

Company Overview - CMS Energy Corporation, based in Jackson, Michigan, operates primarily in the energy sector with a market capitalization of $23.8 billion, focusing on Electric Utility, Gas Utility, and NorthStar Clean Energy segments [1] - The company serves 1.9 million electric and 1.8 million gas customers, including residential, commercial, and diversified industrial clients [1] Market Position - As a large-cap stock, CMS Energy's market cap exceeds $10 billion, indicating its significant size and influence in the regulated electric utilities industry [2] Stock Performance - CMS stock reached a 52-week high of $78.47 on March 2, and has seen a 12% increase over the past three months, outperforming the Nasdaq Composite, which declined by 3.2% during the same period [3] - Over the past 52 weeks, CMS stock has increased by nearly 7.6%, underperforming the Nasdaq Composite's 26% return [3] Technical Indicators - The stock has been trading above its 200-day moving average since February 2026 and above its 50-day moving average since January 2026, indicating a bullish trend [4] Financial Performance - Following the release of better-than-expected Q4 2025 earnings, CMS shares rose by 1.8%. The company's operating revenue for the quarter increased by 12.3% year-over-year to $2.2 billion, driven by growth in the NorthStar Clean Energy segment [5] - CMS' adjusted EPS for the quarter was $0.95, exceeding Wall Street's projections [5] Analyst Sentiment - Compared to its closest peer, Consolidated Edison, Inc., which saw an 8.5% increase in shares over the past 52 weeks, CMS stock has underperformed [6] - The overall consensus rating for CMS stock among 16 analysts is "Moderate Buy," with a mean price target of $80.23, suggesting a 2.5% upside potential from current price levels [6]

Core Viewpoint - CMS Energy Corporation (NYSE:CMS) is recognized as one of the top stocks to invest in during a recession, indicating its resilience and potential stability in challenging economic conditions [1]. Group 1: Analyst Ratings and Price Target - On March 2, 2026, KeyBanc raised the price target for CMS Energy from $79 to $83 while maintaining an Overweight rating, following discussions about Michigan's regulatory environment and the upcoming gubernatorial election [2]. - The analysis also included insights into the data center pipeline and the company's outlook regarding large-load customer mix and long-term capital expenditure requirements [2]. Group 2: Insider Activity - On February 27, 2026, CMS Energy's Director, Diane Leopold, purchased 2,000 shares valued at approximately $153,380, indicating confidence in the company's future [3]. - Prior to this, on February 23, 2026, another Director, John G. Russell, sold 14,914 shares in a transaction valued at $1,129,735, reflecting a mix of insider trading activities [3]. Group 3: Company Overview - Founded in 1987, CMS Energy is a leading utility provider in Michigan, serving over 3.5 million electric and gas customers, highlighting its significant market presence [4].

Company Overview - Clover Health Investments (CLOV) has partnered with Kno2 to become the first payer live on a CMS Aligned Network and TEFCA, enabling real-time patient access to claims data [1][5][8] - The collaboration aims to enhance the adoption of Clover Assistant, which collects patient data across the healthcare ecosystem, potentially improving health outcomes and chronic disease management [5][11] Industry Context - The CMS Aligned Network is a government initiative designed to create an interoperability framework for health data networks, allowing patients to access their electronic medical information and enabling providers to obtain comprehensive treatment histories [2] - TEFCA, mandated by the 21st Century Cures Act, aims to establish a secure, nationwide interoperable system for health information exchange, connecting providers, patients, and payers through Qualified Health Information Networks (QHINs) [3] Financial Performance - Clover Health's shares rose by 8% following the announcement of the partnership, although the company has seen a 21.5% decline in share price over the past six months, compared to a 34.8% decline in the industry [4] - The company reported strong fourth-quarter results, with sales exceeding market expectations and a 38% year-over-year growth in Medicare Advantage membership [12] Market Prospects - The global healthcare data integration market was valued at $1.05 billion in 2022 and is projected to grow at a CAGR of 14.5%, reaching $3.11 billion by 2030, driven by the need for improved patient care and value-based healthcare [10] - Clover Health is gaining momentum in the Medicare Advantage market, supported by its AI-driven Clover Assistant platform, which has shown a positive clinical impact [11]

Core Insights - CMS Energy Corporation is enhancing its operations through targeted investments while ensuring reliable service for customers and expanding its renewable energy portfolio [1][2] Group 1: Investment Strategy - CMS Energy benefits from stable, regulated utility operations in Michigan, supported by a disciplined capital investment strategy focused on grid modernization and clean energy transition initiatives [2] - The company plans to invest approximately $24 billion in capital expenditures from 2026 to 2030 to modernize the grid and enhance clean energy generation [3][8] Group 2: Renewable Energy Growth - CMS Energy is accelerating the growth of its renewable generation portfolio, aiming to add around 8 GW of solar capacity and 2.8 GW of wind capacity over the next 20 years [4][8] - The updated renewable plan includes the addition of up to 9,000 MW of purchased renewable resources and as much as 4,000 MW of wind capacity [4] Group 3: Regulatory Environment and Risks - More than 95% of CMS Energy's earnings come from regulated electric and natural gas businesses, providing a stable revenue stream [2] - The company faces challenges from tightening carbon emission regulations, with coal comprising about 20% of its generation mix as of December 31, 2025, exposing it to compliance costs [5][8]

Core Viewpoint - CMS Energy Corporation (CMS) has reached a significant technical support level, indicated by a "golden cross" where its 50-day simple moving average has crossed above its 200-day simple moving average, suggesting a potential bullish breakout [1][2]. Technical Analysis - A golden cross is a bullish chart pattern formed when a stock's short-term moving average surpasses a longer-term moving average, typically involving the 50-day and 200-day averages, which are believed to indicate stronger breakouts [2]. - The successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer moving average, and the stock maintains upward momentum [3]. Performance Metrics - Over the past four weeks, CMS has experienced a gain of 6.7%, and it currently holds a 3 (Hold) rating on the Zacks Rank, indicating potential for further breakout [4]. - The positive earnings outlook for CMS is supported by one upward revision in earnings estimates over the past 60 days, with no downward revisions, and an increase in the Zacks Consensus Estimate [4]. Investment Outlook - The combination of favorable earnings estimate revisions and the achievement of a key technical level positions CMS as a stock to watch for potential gains in the near future [6].

Summary of Key Points from the Conference Call Industry Overview - The conference call focuses on the **Data Center** industry, particularly the impact of **Artificial Intelligence (AI)** on data center demand and infrastructure investments. Core Insights and Arguments - **AI Demand Surge**: The demand for power driven by AI is exceeding previous expectations, leading to an increase in projected IT load demand for 2026 by **4.3 GW** to **14.5 GW**, which represents a **23% year-over-year growth**. The total IT load demand is now estimated at approximately **77 GW** [7][38]. - **Long-term Projections**: The average annual incremental demand for IT load between **2027 and 2030** is raised to about **19.9 GW**, with a forecast for global IT load to reach **156 GW** by **2030**, reflecting a **5-year CAGR of 20%** [7][38]. - **Capex Growth**: Global capital expenditures (capex) for AI workloads are projected to grow at a **46% CAGR** from **2025 to 2030**, slightly ahead of the **44% CAGR** for AI IT load [7][38]. - **Hyperscaler Investments**: Capex from major hyperscalers like **Amazon (AMZN)**, **Google (GOOGL)**, and **Meta** is expected to grow at a **28% CAGR** from **2025 to 2030**, with a combined projected spend of approximately **$251 billion** in **2026** [7][51][57]. Demand and Supply Dynamics - **Data Center Demand**: AI workloads are anticipated to represent over **70%** of total data center power demand by **2030**. The overall data center market is expected to grow at a **CAGR of 20%** to **156 GW** by **2030** [21][26][38]. - **Colocation Market**: The total tracked colocation capacity is estimated at **39,339 MW** with a supply of **45,248 MW**, indicating an **87% utilization rate** across **81 markets** [13][26]. - **Absorption Rates**: The global market is expected to absorb between **14-21 GW** per year through **2030**, with approximately **78%** of this coming from the colocation market [26][38]. Risks and Considerations - **Digestion Phase Risk**: There is a potential risk of a digestion phase for hyperscalers due to the large capacity expected to be deployed for AI workloads. This phase may occur around **2028-2029** [7][38]. - **Market Pricing Trends**: Pricing trends in primary markets remain strong, with a **5% growth** in primary markets and **10% growth** in secondary markets, while other markets are experiencing a decline [35][38]. Notable Companies Mentioned - **Digital Realty (DLR)**: Buy rating with a target price of **$190** [8]. - **Equinix (EQIX)**: Buy rating with a target price of **$1070** [8]. - **NVIDIA (NVDA)**: Buy rating with a target price of **$270** [8]. - **Microsoft (MSFT)**: Buy rating with a target price of **$635** [8]. - **Amazon (AMZN)**: Buy rating with a target price of **$265** [8]. - **Oracle (ORCL)**: Buy rating with a target price of **$370** [8]. Additional Insights - **AI Workload Dynamics**: AI training and inference workloads have distinct requirements compared to traditional data center workloads, with training being more power-intensive and requiring higher peak power levels [49]. - **Investment Returns**: The return on investment from AI infrastructure is reflected in high cash returns on cash invested (CROCI) at hyperscalers, indicating a favorable environment for continued investment in AI infrastructure [47]. This summary encapsulates the key points discussed in the conference call, highlighting the significant growth and investment trends in the data center industry driven by AI demand.

Company Overview - CMS Energy is based in Jackson and operates in the Utilities sector, with a year-to-date share price change of 8.48% [3] - The company currently pays a dividend of $0.57 per share, resulting in a dividend yield of 3.01%, which is higher than the Utility - Electric Power industry's yield of 2.79% and the S&P 500's yield of 1.36% [3] Dividend Performance - The annualized dividend of CMS Energy is $2.28, reflecting a 5.1% increase from the previous year [4] - Over the past five years, CMS Energy has raised its dividend five times, achieving an average annual increase of 5.79% [4] - The current payout ratio is 60%, indicating that the company distributes 60% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for CMS Energy's earnings in 2026 is $3.86 per share, with an expected increase of 6.93% from the previous year [5] Investment Considerations - CMS Energy is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is viewed as a solid dividend option, particularly in contrast to high-growth businesses or tech start-ups that typically do not offer dividends [6]