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CMS Energy Strong on Investment Plans: Should You Hold?
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We issued an updated research report on CMS Energy Corporation (CMS - Free Report) on Mar 8. The company’s regulated electric power operations in Michigan generate a relatively stable and growing earnings stream, thereby making it an attractive option for investors. Yet, volatile commodity prices remain an overhang on the stock.
CMS Energy is well positioned in terms of capital investment plans. In particular, the company plans to spend $18 billion between 2017 and 2026, the majority of which will be directed toward infrastructure development projects that include investment of $9 billion allocated for 2021. Meanwhile, between 2017 and 2026, the company plans to invest around $6 billion in its electricity operations.
We believe these initiatives will enable the company to successfully achieve its long-term EPS growth target of 6–8% in 2017.
We also appreciate CMS Energy’s sustained efforts to expand its renewable portfolio. At 2016-end, Consumers Energy, a subsidiary of CMS Energy, had wind and hydroelectric generation capacity of 34 MW and 1,110 MW, respectively.
Moreover, shares of CMS Energy outperformed the Zacks categorized Utility-Electric Power industry in the last one year. During the period, CMS Energy’s stock gained 6.7%, while the broader industry declined 0.9%.
On the flip side, CMS Energy’s businesses remain sensitive to commodity prices. An upward movement in fuel prices has every possibility to drive the company’s cost of operations higher.
Also, unfavorable decisions in regulatory cases may impact CMS Energy’s earnings. Although the company can self-implement its requested rate hike for six months, an adverse rate case decision will force the company to refund the incremental bill charged to its customers.
Moreover, CMS Energy faces intense competition from other utilities in the market like PG&E Corporation (PCG - Free Report) , Ameren Corporation (AEE - Free Report) and OGE Energy Corp (OGE - Free Report) which have also outperformed the industry over the last one year.
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Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
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CMS Energy Strong on Investment Plans: Should You Hold?
We issued an updated research report on CMS Energy Corporation (CMS - Free Report) on Mar 8. The company’s regulated electric power operations in Michigan generate a relatively stable and growing earnings stream, thereby making it an attractive option for investors. Yet, volatile commodity prices remain an overhang on the stock.
CMS Energy is well positioned in terms of capital investment plans. In particular, the company plans to spend $18 billion between 2017 and 2026, the majority of which will be directed toward infrastructure development projects that include investment of $9 billion allocated for 2021. Meanwhile, between 2017 and 2026, the company plans to invest around $6 billion in its electricity operations.
We believe these initiatives will enable the company to successfully achieve its long-term EPS growth target of 6–8% in 2017.
We also appreciate CMS Energy’s sustained efforts to expand its renewable portfolio. At 2016-end, Consumers Energy, a subsidiary of CMS Energy, had wind and hydroelectric generation capacity of 34 MW and 1,110 MW, respectively.
Moreover, shares of CMS Energy outperformed the Zacks categorized Utility-Electric Power industry in the last one year. During the period, CMS Energy’s stock gained 6.7%, while the broader industry declined 0.9%.
On the flip side, CMS Energy’s businesses remain sensitive to commodity prices. An upward movement in fuel prices has every possibility to drive the company’s cost of operations higher.
Also, unfavorable decisions in regulatory cases may impact CMS Energy’s earnings. Although the company can self-implement its requested rate hike for six months, an adverse rate case decision will force the company to refund the incremental bill charged to its customers.
Moreover, CMS Energy faces intense competition from other utilities in the market like PG&E Corporation (PCG - Free Report) , Ameren Corporation (AEE - Free Report) and OGE Energy Corp (OGE - Free Report) which have also outperformed the industry over the last one year.
Zacks Rank
CMS Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>