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]
Here's Why You Must Add CMS Energy Stock to Your Portfolio Now