Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Jackson, MI-based CMS Energy Corporation (CMS), formed in 1987, is an energy company. It is the parent holding company of Consumers, an electric and gas utility, and NorthStar Clean Energy, a primarily domestic independent power producer and marketer. Consumers is an electric and gas utility company that provides electricity and/or natural gas to 6.8 million of Michigan’s 10 million residents. In 2023, Consumers served 1.9 million electric customers and 1.8 million gas customers in Michigan’s Lower Peninsula.
CMS is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 18.4X for the current fiscal year compared to the Utility - Electric Power industry's P/E of 16.7X. Additionally, CMS has a PEG Ratio of 2.4 and a Price/Cash Flow ratio of 9.3X. Value investors should also note CMS' Price/Sales ratio of 2.7X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2024. The Zacks Consensus Estimate has increased $0.00 to $3.33 per share. CMS has an average earnings surprise of 4.7%.
Investors should take the time to consider CMS for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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CMS Energy Corporation (CMS) : Free Stock Analysis Report
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