11 Best Regulated Electric Stocks to Buy Now

9. CMS Energy Corp. (NYSE:CMS)

CMS Energy Corp. (NYSE:CMS) is one of the 11 best regulated electric stocks to buy now.

On June 4, BMO Capital analyst James Thalacker maintained an Outperform rating on CMS Energy Corp. (NYSE:CMS) and reduced the price target from $82 to $81. This revision follows a fresh regulatory filing by the company’s subsidiary, Consumers Energy, which submitted an electric rate case application requesting a $456 million increase in its revenue requirement.

The proposed rate structure is built upon a 10.25% return on equity and a 51.75% equity layer. Despite the slight target adjustment, Thalacker reiterated its positive long-term outlook for the utility enterprise, citing above-average EPS and DPS growth trajectories, a highly visible, long-dated capital deployment program, steady operational execution, and a generally supportive regulatory landscape.

On May 18, prior to the American Gas Association’s Financial Forum, Truist updated its stance on CMS Energy Corp. (NYSE:CMS). The firm revised its price target down to $83 from $86, while maintaining the Buy rating previously assigned to the shares. The target adjustment still yields mid-teen upside potential at the prevailing level.

Analyst Richard Sunderland reflected on accelerated investments across the broader sector, attributing it to the ongoing data center wave that is currently in its third year. He also shared his appreciation for vertically integrated electric utilities that are expected to benefit from their role within the required infrastructure development.

CMS Energy Corp. (NYSE:CMS) sells electricity produced from wind, gas, oil, coal, nuclear, and renewable sources. The company also acquires, stores, and delivers natural gas and is engaged in developing and operating independent renewable energy projects.