CMS Energy Set to Benefit From Renewable Growth & Capital Deployment

CMS Energy Corporation CMS is strengthening operations through strategic investments while maintaining reliable, high-quality customer service. The company is broadening its renewable energy portfolio while phasing out coal-generating units.However, this Zacks Rank #3 (Hold) company is exposed to risks like a weak solvency position and the unfavorable costs tied to shutting down solid waste disposal facilities for coal ash.Key Catalysts for CMS StockCMS Energy is undertaking major investments in infrastructure modernization, system replacements and clean energy generation to boost reliability and customer satisfaction. Between 2025 and 2029, the company plans to allocate $20 billion toward capital expenditures. The company plans to deploy nearly 3,000 line sensors, 100 automatic transfer reclosers and 1,200 iron utility poles to enhance electric reliability and reduce power outages. CMS Energy plans to expand its renewable portfolio by adding 9 gigawatts (GW) of solar and 2.8 GW of wind capacity between 2025 and 2045. The company announced an 85-megawatt (MW) solar project at the former D.E. Karn coal plant site, expected to be operational by 2026. These initiatives are anticipated to strengthen CMS Energy’s infrastructure resilience, support customer growth and diversify its renewable energy portfolio.CMS has cut its coal-generating capacity to lower emissions from its generation assets. The company plans to retire the J.H. Campbell coal unit in 2025 and the D.E. Karn oil- and gas-fired unit in 2031. These actions support CMS’ goal of eliminating coal-fueled generation by 2025.CMS Energy, through its subsidiary Consumers Energy, is making significant investments in energy storage projects to strengthen grid reliability and advance its clean energy transition. The company has secured agreements to acquire 700 MW of capacity from battery storage facilities planned across Michigan’s Lower Peninsula, with operations targeted to begin by 2028.Potential Risks to CMS StockWith carbon emission regulations in electricity generation becoming more stringent, concerns remain despite CMS’ efforts to adopt pollution-control measures. As of Dec. 31, 2024, coal still accounted for nearly 20% of its total generation. CMS incurs significant costs associated with the development, operation and closure of solid waste disposal facilities for coal ash. To comply with these laws, consumers expect the company to spend $237 million between 2025 and 2029.As of June 30, 2025, CMS Energy had $0.93 billion in cash and equivalents, $16.92 billion in long-term debt and $1.13 billion in current debt, indicating a weak solvency position due to higher debt than cash reserves.CMS Stock Price MovementIn the past three months, CMS shares have risen 5% compared with the industry’s growth of 1.7%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the same industry are Fortis FTS, National Grid NGG and Centuri Holdings, Inc. CTRI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.FTS’ long-term (three to five years) earnings growth rate is 5.1%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $2.50, which calls for a year-over-year jump of 4.6%.NGG’s long-term earnings growth rate is 8.4%. The Zacks Consensus Estimate for fiscal 2026 EPS is pegged at $5.25, which indicates a year-over-year improvement of 47.1%.CTRI’s long-term earnings growth rate is 41.2%. The Zacks Consensus Estimate for its 2025 EPS stands at 63 cents, which implies a year-over-year rise of 96.9%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CMS Energy Corporation (CMS): Free Stock Analysis Report National Grid Transco, PLC (NGG): Free Stock Analysis Report Fortis (FTS): Free Stock Analysis Report Centuri Holdings, Inc. (CTRI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks