Core Viewpoint - CMS Energy Corporation (CMS) presents a strong investment opportunity in the Zacks Utility Electric Power industry due to rising earnings estimates, strategic investments, robust return on equity (ROE), better solvency, and a strong dividend history [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for CMS Energy's 2025 earnings per share (EPS) has increased by 0.3% to $3.60 per share over the past 60 days - The revenue estimate for CMS in 2025 is $8.07 billion, indicating a growth of 7.4% from the reported figure in 2024 - The company's long-term earnings growth rate is projected at 7.7%, with an average earnings surprise of 4.76% over the last four quarters [2] Return on Equity - CMS has a return on equity (ROE) of 12.02%, outperforming the industry average of 9.77%, indicating more efficient utilization of funds to generate returns [3] Solvency - The times interest earned (TIE) ratio for CMS Energy at the end of Q4 2024 was 2.5, suggesting the company can comfortably meet its interest payment obligations in the near term [4] Dividend History - CMS Energy has a quarterly dividend of 54.25 cents per share, leading to an annualized dividend of $2.17, with a current dividend yield of 3.02%, surpassing the Zacks S&P 500 Composite average of 1.38% [5] Systematic Investments - CMS plans to invest $20 billion in infrastructure upgrades and clean energy generation from 2025 to 2029, with $14.8 billion allocated to enhance gas infrastructure and electric distribution systems, improve customer satisfaction, minimize energy waste, and support clean energy transformation [6] Stock Price Performance - Over the past three months, CMS shares have increased by 7.8%, compared to the industry's growth of 4% [7]

Core Viewpoint - The utility sector is viewed as a safe investment during economic turbulence, providing essential services that consumers prioritize even in difficult times [1][7][8]. Group 1: Definition and Characteristics of Utility Stocks - Utility stocks are companies primarily involved in distributing essential services such as electricity, gas, and water [5][6]. - The Global Industry Classification Standard (GICS) categorizes the utility sector to include electric, gas, and water utilities, as well as independent power producers and energy traders [6]. - Utility companies exhibit low economic sensitivity, generating stable revenues and profits, and are known for their substantial dividends [8][9]. Group 2: Investment Appeal - Investors are drawn to utility stocks due to their "stickiness" in revenues, similar to healthcare and consumer staples, making them defensive stocks [7][8]. - Utilities are often among the best-yielding market sectors, providing safety and potential upside during market downturns [9]. - The sector's stability allows for gradual rate increases, although growth is typically capped at low single-digit rates [11]. Group 3: Recent Trends and Opportunities - The rise of artificial intelligence (AI) is expected to significantly increase power usage over the next decade, presenting a unique growth opportunity for utility companies [12][13]. - This trend may enable utilities to enhance their business results in a way that has not been seen before [13]. Group 4: Criteria for Selecting Utility Stocks - A quality screen for selecting utility stocks includes companies within the S&P Composite 1500, with a long-term estimated earnings-per-share growth rate of at least 5% [15]. - Stocks should have a dividend yield of at least 2.5%, with a history of growing dividends by at least 5% over the past year [16][17]. - Companies should have at least five covering analysts and a consensus Buy rating of 2.5 or less on S&P Global Market Intelligence's ratings scale [18][19]. Group 5: Recommended Utility Stocks - Recommended utility stocks include: - IDACORP (IDA): 2.9% yield, 5.5% estimated annual dividend growth, 8.3% long-term EPS growth, consensus rating 1.75 [19]. - NiSource (NI): 2.8% yield, 6.8% estimated annual dividend growth, 8.0% long-term EPS growth, consensus rating 1.53 [19]. - DTE Energy (DTE): 3.1% yield, 6.9% estimated annual dividend growth, 8.0% long-term EPS growth, consensus rating 2.05 [19]. - New Jersey Resources (NJR): 3.6% yield, 5.4% estimated annual dividend growth, 7.6% long-term EPS growth, consensus rating 2.22 [19]. - CMS Energy (CMS): 2.9% yield, 5.8% estimated annual dividend growth, 7.3% long-term EPS growth, consensus rating 2.21 [19]. - Sempra (SRE): 3.7% yield, 5.6% estimated annual dividend growth, 7.0% long-term EPS growth, consensus rating 2.11 [19]. - Ameren (AEE): 2.6% yield, 6.3% estimated annual dividend growth, 6.9% long-term EPS growth, consensus rating 2.24 [19]. - Public Service Enterprise Group (PEG): 3.1% yield, 5.7% estimated annual dividend growth, 6.6% long-term EPS growth, consensus rating 2.35 [19]. - Essential Utilities (WTRG): 3.2% yield, 6.6% estimated annual dividend growth, 6.5% long-term EPS growth, consensus rating 1.46 [19]. - FirstEnergy (FE): 4.1% yield, 5.6% estimated annual dividend growth, 5.7% long-term EPS growth, consensus rating 2.39 [20].

Market Overview - Wall Street is anticipating a challenging start to the week, with fears of a repeat of the 1987 Black Monday, which saw a 22.6% market plunge [5][6] - Major indexes, including Dow, S&P 500, and Nasdaq, are expected to open 6% lower, potentially making last week's $6.6 trillion losses appear minor [6] Economic Impact - President Trump's recent tariffs have caused global market turmoil, leading to uncertainty among investors regarding future market reactions [6][7] - Trump stated he would not engage in trade deals until trade deficits are addressed, which may prolong market distress until clarity on the tariffs' economic impact is achieved [7] Investment Recommendations - In light of the current market conditions, investing in safe-haven stocks, particularly in the utilities sector, is advised [3][4] - Recommended utility stocks include: - **Avista Corporation (AVA)**: Expected earnings growth rate of 14%, Zacks Rank 1, beta of 0.38, and a dividend yield of 4.81% [9] - **CMS Energy Corporation (CMS)**: Expected earnings growth rate of 7.8%, Zacks Rank 2, beta of 0.34, and a dividend yield of 2.99% [11] - **Exelon Corporation (EXC)**: Expected earnings growth rate of 6.4%, Zacks Rank 2, beta of 0.39, and a dividend yield of 3.53% [13] - **Southwest Gas Holdings, Inc. (SWX)**: Expected earnings growth rate of 17.1%, Zacks Rank 2, beta of 0.50, and a dividend yield of 3.60% [15]

Group 1 - CMS Energy will provide its 2025 first quarter results along with a business and financial outlook on April 24, 2025, at 9:30 a.m. EDT [1] - A webcast of the presentation will be available on CMS Energy's website, and an audio replay will be accessible approximately three hours after the webcast [1] - The audio replay will be archived for 30 days in the "Investors" section of CMS Energy's website [1] Group 2 - CMS Energy is a Michigan-based energy company, with Consumers Energy as its primary business [2] - The company also owns and operates independent power generation businesses [2] - Additional information about CMS Energy can be found on its website, and email alert notifications can be signed up for in the Investor Relations section [2]

Market Overview - The Nasdaq Composite and the S&P 500 declined by 0.14% and 0.13% respectively, while the Dow Jones Industrial Average gained 0.34% [1] - Investor sentiment is influenced by President Trump's tariff policies and their potential impact on the U.S. economy [1] - Fed Chairman Jerome Powell indicated the central bank's commitment to two rate cuts by the end of the year, aiming for a half-percentage point reduction [1] Economic Indicators - The Federal Open Market Committee maintained borrowing rates in the range of 4.25-4.5%, aligning with market expectations [2] - Preliminary consumer sentiment for March fell to 57.9 from 64.7 in the previous month [2] - Retail sales increased by 0.2% in February, with a year-over-year growth of 3.1%, surpassing the Consumer Price Index (CPI) rate of 2.8% [2] Labor Market - Jobless claims rose by 2,000 to 223,000 for the week ending March 20, indicating a slight cooling in the labor market [3] - Layoff levels remain low, but individuals are staying unemployed longer compared to the previous year, suggesting a cooling trend [3] - Overall labor market conditions are neutral amid economic uncertainty, with limited layoffs and slowing hiring [3] Stock Performance - CMS Energy Corporation shares increased by 11.7% since being upgraded to Zacks Rank 2 (Buy) on January 27, outperforming the S&P 500's 7.3% decline [4] - Shionogi & Co., Ltd. shares returned 5.3% since its upgrade to Zacks Rank 2 on January 24, also outperforming the S&P 500's 7.5% decrease [5] - The Zacks Model Portfolio of Rank 1 stocks has outperformed the S&P 500 index by almost 13 percentage points since 1988, with an annualized average return of +23.9% [7] Focus List and Recommendations - Uber Technologies, Inc. shares gained 22.9% over the past 12 weeks, while Chevron Corporation returned 14.5% during the same period [11] - The Zacks Focus List portfolio returned +18.41% in 2024, compared to +25.04% for the S&P 500 index [12] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned -6.29% in December 2024, while achieving +16.26% for the year [16] Dividend Portfolio Performance - Johnson & Johnson returned 12.2% over the past 12 weeks, and Coca-Cola Company increased by 9.3% during the same timeframe [18] - The Zacks Earnings Certain Dividend Portfolio (ECDP) returned -7.44% in December 2024, with a full-year return of +6.95% [19] Top 10 Stocks - Primo Brands Corporation has increased by 4.9% year-to-date, outperforming the S&P 500 index's 3.8% decrease [22] - The Top 10 portfolio achieved a cumulative return of +1948.35% since 2012, significantly outperforming the S&P 500 index's 469.98% [24]

Group 1: Federal Reserve and Economic Outlook - The Federal Reserve raised its annual inflation outlook to nearly 3% while keeping interest rates unchanged in the range of 4.25-4.5% for the second consecutive time this year [1][4] - The Fed lowered its GDP forecast for the year from 2.1% to 1.7% and increased its inflation gauge expectation to 2.7% from 2.5% [8] Group 2: Investment Recommendations - Given the current market volatility, investing in defensive sectors such as utilities and consumer staples is recommended, with specific stocks like CMS Energy Corporation, NiSource Inc., CenterPoint Energy, Molson Coors Beverage Company, and Carriage Services highlighted as good picks [2] - These recommended stocks are characterized as low-beta stocks with high dividend yields and favorable Zacks Ranks [3] Group 3: Company Profiles - **CMS Energy Corporation**: Expected earnings growth rate of 7.8% for the current year, Zacks Rank 2, beta of 0.35, and a dividend yield of 2.95% [10] - **NiSource Inc.**: Expected earnings growth rate of 9.1%, Zacks Rank 2, beta of 0.50, and a dividend yield of 2.88% [12] - **CenterPoint Energy, Inc.**: Expected earnings growth rate of 8%, Zacks Rank 2, beta of 0.91, and a dividend yield of 2.47% [14] - **Molson Coors Beverage Company**: Expected earnings growth rate of 6.5%, Zacks Rank 1, beta of 0.81, and a dividend yield of 3.19% [16] - **Carriage Services**: Expected earnings growth rate of 21.1%, Zacks Rank 1, beta of 0.91, and a dividend yield of 1.17% [18]

Group 1 - CMS Energy is currently ranked 4 in the Zacks Sector Rank among 104 companies in the Utilities group [2] - The Zacks Rank for CMS Energy is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - CMS Energy has returned 9.2% year-to-date, outperforming the Utilities sector average return of 4.1% [4] Group 2 - Iberdrola S.A. has also outperformed the Utilities sector with a year-to-date return of 10.4% and holds a Zacks Rank of 2 (Buy) [4][5] - CMS Energy belongs to the Utility - Electric Power industry, which has an average return of 5.2% this year, indicating CMS's strong performance within this specific industry [5] - Both CMS Energy and Iberdrola S.A. are expected to continue their solid performance, making them noteworthy for investors in Utilities stocks [6]

ANN ARBOR, Mich., March 17, 2025 /PRNewswire/ -- NorthStar Clean Energy recently secured up to $334 million in construction-to-term financing for two transformative solar projects in Michigan. The Branch Solar project, a 200 MW facility in Branch County, will be NorthStar's largest solar asset in Michigan. The Genesee Solar project will be a 50 MW clean energy facility located in a historically disenfranchised community in Genesee County. "Our Michigan roots run deep," said Brian Hartmann, President of Nort ...

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: CMS Energy - CMS Energy has a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company currently holds a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance [3] Performance Metrics - Over the past week, CMS shares increased by 2.18%, outperforming the Zacks Utility - Electric Power industry, which rose by 1.06% [5] - In the last month, CMS shares rose by 11.4%, compared to the industry's 4.5% [5] - Over the past quarter, CMS shares have risen by 9.48%, and over the last year, they are up 25.59%, while the S&P 500 has moved -2.97% and 15.34% respectively [6] Trading Volume - CMS's average 20-day trading volume is 2,276,481 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 3 earnings estimates for CMS have increased, while only 1 has decreased, raising the consensus estimate from $3.59 to $3.60 [9] - For the next fiscal year, 4 estimates have moved upwards with no downward revisions [9] Conclusion - Given the positive performance metrics and earnings outlook, CMS Energy is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. CMS Energy (CMS) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.CMS Energy is one of 104 individual stocks in the Utilities sector. Collectively, t ...