How Is CMS Energy's Stock Performance Compared to Other Utilities Stocks?

Jackson, Michigan-based CMS Energy Corporation (CMS) is a diversified energy company that primarily provides electric and natural gas utility services. Valued at a market cap of $21 billion, the company also operates non-utility businesses, which encompass independent power generation and renewable energy development efforts. 

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’s deep understanding of Michigan’s regulatory environment, commitment to environmental stewardship, and operational efficiency efforts underscore its expertise in providing both dependable service and forward-looking energy solutions.

This utility company has slipped 8.2% from its 52-week high of $76.45, reached on Apr. 3. Shares of CMS have gained 2% over the past three months, underperforming the Utilities Select Sector SPDR Fund’s (XLU) 4.9% return during the same time frame.

In the longer term, CMS has gained marginally over the past 52 weeks, lagging behind XLU's 8.3% uptick over the same time period. Moreover, on a YTD basis, shares of CMS are up 5.3%, compared to XLU’s 11.7% surge.

To confirm its recent bearish trend, CMS has been trading below its 200-day moving average recently, and has remained below its 50-day moving average since late August.

On Jul. 31, shares of CMS Energy surged 2.3% after its better-than-expected Q2 earnings release. The company’s operating revenue increased 14.4% year over year to $1.8 billion, handily exceeding consensus estimates by 8.9%. Moreover, its adjusted EPS came in at $0.71, up 7.6% from the year-ago quarter and 6% above analyst forecasts. 

CMS has also lagged behind its rival, DTE Energy Company (DTE), which soared 8.6% over the past 52 weeks and 11.9% on a YTD basis. 

Despite CMS’ recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 16 analysts covering it, and the mean price target of $78.54 suggests an 11.9% premium to its current price levels.