Valued at a market cap of $22.3 billion, Ameren Corporation (AEE) operates as a public utility holding company that generates and distributes electricity and natural gas to residential, commercial, industrial, and wholesale end markets. The Saint Louis, Missouri-based company generates electricity through coal, nuclear, natural gas, and renewable sources as well.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Ameren fits this criterion perfectly. The company has 2.4 million electrics and 900,000 natural gas customers across 64,000 square miles in Missouri and Illinois and employs approximately 9,000 personnel. Its Ameren Missouri segment ranks as the largest electric power provider in Missouri.
Shares of AEE are trading marginally below their 52-week high of $85.83, which they hit on Sep. 16. The electric services company has gained 19.6% over the past three months, surpassing the broader Dow Jones Industrials Average’s ($DOWI) 7.2% gain over the same time frame.
In the longer term, AEE stock is up 17.5% on a YTD basis, surpassing DOWI’s 11.3% gains. However, shares of AEE have gained 5.7% over the past 52 weeks, underperforming DOWI’s 21.8% returns over the same time frame.
To confirm its bullish trend, AEE has been trading above its 200-day and 50-day moving average since mid-July.
Shares of AEE gained 2.5% following its Q2 earnings release on Aug. 1. The company reported a 7.8% year-over-year increase in earnings to $0.97 per share, which surpassed Wall Street forecasts of $0.93. However, its revenue of $1.69 billion in the period, down 3.8% from a year ago, missed the consensus estimates of $1.88 billion. Ameren expects full-year earnings in the range of $4.52 to $4.72 per share.
AEE has lagged behind its rival, CMS Energy Corporation (CMS), which has gained 20.2% over the past 52 weeks and 22.8% on a YTD basis.
Given that AEE has outperformed the broader market recently, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 13 analysts in coverage. The stock is trading above its mean price target of $83.08.
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.
