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

CMS Energy Corporation CMS, with its rising earnings estimates, strategic investments, robust ROE, better solvency and strong dividend history, offers a great investment opportunity in the Zacks Utility Electric Power industry.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.CMS’ Growth Projections & Surprise History The Zacks Consensus Estimate for CMS Energy’s 2025 earnings per share (EPS) has increased 0.3% to $3.60 per share in the past 30 days. The Zacks Consensus Estimate for CMS’ revenues for 2025 stands at $8.06 billion, which indicates growth of 7.3% from the 2024 reported figure.The company’s long-term (three to five years) earnings growth rate is pegged at 7.7%. It delivered an average earnings surprise of 4.76% in the last four quarters.CMS’ Return on Equity Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, CMS’ ROE is 12.02% compared with the industry’s 9.89%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.CMS’ Solvency CMS Energy’s times interest earned ratio (TIE) at the end of the fourth quarter of 2024 was 2.5. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.Dividend History of CMS CMS Energy has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 54.25 cents per share, resulting in an annualized dividend of $2.17. The company’s current dividend yield is 3.05%, better than the Zacks S&P 500 Composite's average of 1.31%.CMS’ Systematic Investments CMS Energy is making significant investments in infrastructure renovations and clean energy generation to improve consumer reliability and resiliency. Over the 2025-2029 period, the company intends to invest $20 billion, of which $14.8 billion will be used to maintain and enhance its gas infrastructure and electric distribution systems, improve customer satisfaction, minimize energy waste on those systems and support clean energy transformation.CMS Stock Price Performance In the past three months, CMS shares have risen 6.7% compared with the industry’s growth of 2.3%.Image Source: Zacks Investment ResearchOther Stocks to Consider A few other top-ranked stocks from the same industry are CenterPoint Energy Inc. CNP, NiSource Inc. NI and Ameren Corporation AEE, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CNP’s long-term earnings growth rate is 7.1%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.75, which indicates a year-over-year improvement of 8%.  NI’s long-term earnings growth rate is 8.2%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.91, which suggests a year-over-year rise of 9.1%.  AEE’s long-term earnings growth rate is 6.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.94, which calls for a year-over-year improvement of 6.7%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Ameren Corporation (AEE): Free Stock Analysis Report NiSource, Inc (NI): Free Stock Analysis Report CMS Energy Corporation (CMS): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): 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