On Dec 19, 2014, shares of CMS Energy Corporation (CMS) touched a 52-week high of $34.81, finally closing at $34.49, down around 0.2% from the previous day’s closing.
Systematic investments in infrastructure development, focus on renewable ventures, strong financial position and regular dividend payments have helped PPL Corp. to reach the 52-week high mark. These factors will likely drive future growth for the company as well.
CMS Energy continues to follow several initiatives, including strengthening circuits and substations, installing smart meters and replacing aging poles, to maximize both reliability and generation capacity. In the first nine months of 2014, the company invested around $1.13 billion and plans to invest $15.5 billion between 2015 and 2024.
CMS Energy is also enhancing its renewable generating systems. The company’s Consumers Electric Utility division plans to invest $0.2 billion in a renewable energy plan, supported by the Michigan Public Service Commission. These initiatives will allow the company to diversify its generation mix and reduce dependence on traditional fuel-powered facilities, thereby maintaining government mandates.
CMS Energy maintains a stable liquidity position with a cash balance of around $0.49 billion and available funds of nearly $1.2 billion under a revolving credit facility as of Sep 30, 2014. The company’s operating cash flow during the first nine months of 2014 stood at around $0.96 billion. A favorable liquidity profile supports the company’s strategic capital spending program.
In addition to expanding operations through steady investments, a stable liquidity allows CMS Energy to pay dividends at regular intervals and pursue an effective share repurchase program. These steps will allow the company to retain investor interest in the stock.
CMS Energy currently has a Zacks Rank #3 (Hold). Other stocks in the same industry worth considering include Black Hills Corporation (BKH), PG&E Corporation (PCG) and The Empire District Electric Company (EDE), each carrying a Zacks Rank #1 (Strong Buy).
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