Headquartered in Jackson, Michigan, CMS Energy Corporation (CMS) is a prominent energy company focused on providing reliable and sustainable energy solutions. With a market cap of $19.93 billion, CMS Energy is recognized for its comprehensive services in electric and natural gas utility operations, as well as its commitment to renewable energy initiatives.
CMS shares have underperformed the broader market over the past year. The stock has gained 18.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.8%. In 2024, the stock is up 15.4%, while the SPX has gained 17.8% on a YTD basis.
Narrowing the focus, CMS' underperformance is evident when measured against the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained 18.9% on a YTD basis.
On Jul. 25, CMS reported its Q2 results. Its adjusted EPS of $0.66 beat the consensus estimates of $0.63. The company’s revenue of $1.61 billion fell short of Wall Street forecasts of $1.69 billion. CMS expects full-year adjusted EPS to be between $3.29 and $3.35. CMS shares gained 1.2% on the day the results were released.
For the current fiscal year, ending in December, analysts expect CMS’ EPS to grow 7.1% to $3.33 on a diluted basis. The company's earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing on one other occasion.
Among the 15 analysts covering CMS stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings and six “Holds.”
On Jul. 26, BMO Capital analyst James Thalacker reiterated a “Buy” rating on CMS Energy, with a price target of $69, implying a potential upside of 3% from current levels.
The mean price target of $67.36 represents a marginal premium compared to CMS’ current price levels. The Street-high price target of $75 suggests an upside potential of 11.9%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
