Estimates for Ameren Corporation (AEE - Free Report) have been revised upward in the past 60 days, reflecting analysts’ optimism in the stock. The Zacks Consensus Estimate for 2018 and 2019 earnings have moved up 3% and 0.3%, respectively.
Shares of Ameren have improved 10.7% in the past 12 months, against the industry’s decline of 3.3%.
Let’s focus on the factors that make Ameren an attractive stock to hold in.
Zacks Rank & Surprise History
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren pulled off an average positive earnings surprise of 15.40% in the last four quarters.
The Zacks Consensus Estimate for 2018 earnings per share is pegged at $3.37, reflecting year-over-year improvement of 19.08%. Its long-term earnings growth rate is at 6.80%.
The Zacks Consensus Estimate for 2018 revenues is pegged at $6.28 billion, reflecting year-over-year rise of nearly 1.64%.
Ameren has an impressive VGM Score of B. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are the best investment options.
Ameren is focused on systematic investments in growth projects, infrastructure upgrades, electric transmission and delivery infrastructure. The company expects an expenditure of $2.2 billion for 2018. Over 2018 to 2022 time frame, the company expects to spend up to $11.4 billion, comprising up to $4.5 billion, $6.6 billion and $0.3 billion for Ameren Missouri, Ameren Illinois and ATXI during 2018-2022, respectively.
These investments are aimed to support overall system reliability, environmental compliance as well as electric and natural gas utility infrastructure improvements. Also, the company expects additional investment of $1 billion to modernize the Ameren Missouri electric grid along with installation of smart meters and deployment of advance technologies through 2018-2023.
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Pinnacle West Capital Corporation (PNW - Free Report) , IDACORP, Inc (IDA - Free Report) and FirstEnergy Corp (FE - Free Report) . All three stocks hold a Zacks Rank #2.
Long-term earnings growth of Pinnacle West Capital, IDACORP and FirstEnergy is pegged at 4.47%, 2.80% and 6%, respectively.
The Zacks Consensus Estimate for 2018 earnings for Pinnacle West Capital, IDACORP and FirstEnergy moved up 0.7%, 3.7% and 3.6% in the past 90 days, respectively.
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