Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
CMS Energy (CMS)
Jackson, MI-based CMS Energy Corporation (CMS), founded in 1886, is the holding company of Consumers Energy Company (Consumers) and CMS Enterprises Company (Enterprises). Consumers is an electric and gas utility company that provides electricity and natural gas to residents of Michigan, and serves customers in all 68 counties of Michigan’s Lower Peninsula. The Enterprises segment, through its subsidiaries and equity investments, is engaged primarily in independent power production.
CMS boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of CMS Energy are trading at a forward earnings multiple of 17.2X, as well as a PEG Ratio of 2.2, a Price/Cash Flow ratio of 7.9X, and a Price/Sales ratio of 1.9X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.00 to $3.10 per share. CMS has an average earnings surprise of 3.7%.
CMS should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.
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CMS Energy Corporation (CMS) : Free Stock Analysis Report
