5 Best Electric Utility Stocks To Invest In

4. Ameren Corporation (NYSE:AEE)

Number of Hedge Fund Holders: 28

Ameren Corporation (NYSE:AEE) deals in the production and transmission of electricity to consumers in Missouri and Illinois, as well as the distribution and transmission of natural gas. The company generates its power through a mix of conventional and renewable sources, and on June 27 announced that it was acquiring its largest ever solar power facility, a 200 MW setup in central Missouri. Ameren Corporation (NYSE:AEE) was another utility firm that featured in Wells Fargo’s list of recession stocks to buy.

On June 3, Argus analyst Marie Ferguson raised the firm’s price target on Ameren Corporation (NYSE:AEE) to $102 from $95 and maintained a ‘Buy’ rating on the shares. The analyst notes that Ameren is the beneficiary of a more favorable regulatory environment and steady rate base growth, and that company management projects 7% CAGR (compound annual growth rate) in its rate base through 2026. Ferguson is bullish on the company’s future growth prospects, and reaffirmed her $4.35 EPS estimate for 2023.

For Q1 2022, Ameren Corporation (NYSE:AEE) posted a $1.88 billion revenue, up 20% from the year-ago quarter and beating estimates by $266.9 million. EPS came in-line with estimates. As of June 27, the company offers a 2.65% yield to shareholders, and has increased its dividend payout for 8 years in a row. It has also registered gains of 8.61% in the last 12 months.