Here's Why You Must Add CMS Energy Stock to Your Portfolio Now

CMS Energy Corporation CMS continues to invest consistently in infrastructure modernization to enhance service reliability for its customers. The company is also expanding its renewable generation portfolio. Considering its promising growth prospects, CMS offers a strong investment opportunity in the Zacks Utility Electric Power industry.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a solid investment pick at the moment.CMS’ Growth Projections & Surprise HistoryThe Zacks Consensus Estimate for CMS’ 2026 earnings per share (EPS) has increased 0.3% to $3.86 per share in the past 90 days.The Zacks Consensus Estimate for CMS’ 2026 revenues stands at $8.76 billion, which indicates growth of 2.6%.CMS’ long-term (three to five years) earnings growth rate is 7.31%. The company delivered an average earnings surprise of 3.08% in the last four quarters.CMS’ Return on EquityReturn on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, CMS' ROE is 12.09% compared with its industry’s average of 10.82%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.CMS’ SolvencyCMS Energy’s times interest earned ratio (TIE) at the end of the fourth quarter of 2025 was 2.6. The TIE ratio greater than one suggests that the company will be able to make its interest payment obligations in the near term without difficulty.CMS’ Return to ShareholdersCMS Energy has been increasing shareholder value by steadily paying dividends. In February 2026, the company’s board of directors authorized a quarterly dividend increase to 57 cents per share from 54.25 cents, marking a 5.1% hike and bringing the annualized dividend to $2.28. CMS’ current dividend yield stands at 2.9%, significantly higher than the Zacks S&P 500 Composite’s 1.14%.CMS’ Infrastructure Spending & Renewable ExpansionCMS Energy is making significant investments to modernize its infrastructure, replace aging assets and expand clean energy generation, with a focus on improving reliability and system resilience. To support these efforts, the company plans capital expenditures of nearly $24 billion over 2026-2030.CMS is also accelerating the growth of its renewable energy portfolio. It aims to add about 8 gigawatts (GW) of solar and 2.8 GW of wind capacity over the next two decades. Under its renewable energy plan, Consumers Energy has acquired three wind projects since 2020, totaling 517 megawatts (MW) of nameplate capacity. Its updated renewable plan includes up to 9,000 megawatts MW of purchased power, along with as much as 4,000 MW of wind resources.CMS Stock Price PerformanceIn the past three months, CMS shares have risen 12.3% compared with the industry’s growth of 11.4%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are CenterPoint Energy Inc. CNP, NiSource Inc. NI and DTE Energy Company DTE, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CNP’s long-term earnings growth rate is 8.86%. The Zacks Consensus Estimate for its 2026 EPS stands at $1.91, which calls for a year-over-year jump of 8.5%.NI’s long-term earnings growth rate is 5.97%. The Zacks Consensus Estimate for its 2026 EPS is pegged at $2.05, which implies a year-over-year rise of 7.9%.DTE’s long-term earnings growth rate is 7.06%. The consensus estimate for its 2026 EPS is pegged at $7.72, which indicates a year-over-year rally of 4.9%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks