CMS Energy Corporation (CMS) is an American energy company based in Jackson, Michigan. Valued at a market cap of $22 billion, the company generates, transmits, and distributes electricity and natural gas, and has a strong focus on sustainability and clean energy initiatives.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and CMS fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the utilities - regulated electric industry. The company has a diversified energy portfolio, including natural gas, coal, nuclear, and renewable sources like wind and solar, with a strong commitment to achieving net-zero carbon emissions by 2040. It is known for its innovation in energy efficiency, smart grid technology, and infrastructure modernization.
This utility company is currently trading 2.6% below its 52-week high of $75.06 reached on Mar. 4. Shares of CMS have rallied 9.5% over the past three months, outpacing the broader Dow Jones Industrial Average’s ($DOWI) nearly 1.7% downtick during the same time frame.
In the longer term, CMS has soared 24% over the past 52 weeks, outperforming DOWI’s 7.9% rise over the same time frame. Moreover, on a YTD basis, shares of CMS are up 9.7%, compared to DOWI’s slight uptick.
To confirm its bullish trend, CMS has been trading above its 200-day moving average since the past year, with slight fluctuations, and has remained above its 50-day moving average since early February.
On Feb. 6, shares of CMS surged 1.8% after its mixed Q4 earnings release. It posted a profit of $0.87 per share, which declined 17.1% from the year-ago quarter but exceeded consensus expectations of $0.86. However, on the other hand, its revenue climbed 2% year-over-year to $2 billion, but fell 7% short of Wall Street estimates. Despite the revenue miss, CMS Energy raised its fiscal 2025 adjusted EPS guidance to $3.54 to $3.60 and reaffirmed its long-term adjusted EPS growth target of 6% to 8%, expressing confidence in reaching the higher end of this range. This optimistic guidance likely reassured investors, contributing to the stock's upward movement.
Yet, CMS has lagged behind its rival, DTE Energy Company (DTE), which gained almost 25.1% over the past 52 weeks and nearly 12.8% on a YTD basis.
Given CMS’ recent outperformance relative to the Dow, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts covering it, and the mean price target of $74.35 suggests a slight 1.7% premium to its current levels.
