Founded in 1881 and headquartered in Saint Louis, Missouri, Ameren Corporation (AEE) operates as a public utility holding company in the United States. With a market cap of $26.7 billion, the company operates through four segments: Ameren Missouri, Ameren Illinois Electric Distribution, Ameren Illinois Natural Gas, and Ameren Transmission.
Companies with a market value of $10 billion or more are classified as “large-cap stocks,” and AEE is a prominent member of this category. As one of the top energy suppliers in the country, AEE serves residential, commercial, and industrial customers providing electricity through coal, nuclear, and natural gas, as well as renewable energy.
AEE has been trading 5.1% below its 52-week high of $104.10, recorded recently on Mar. 4. The stock has surged 8.7% over the three months, substantially outpacing the iShares U.S. Infrastructure ETF’s (IFRA) fall of 1.2% over the same time frame.
The stock’s prospects look more appealing in the long term. Over the past six months, AEE has surged 15.7%, outperforming IFRA, which declined 1.5%. Moreover, over the past year, AEE has gained 37.9%, beating IFRA's 9% rally over the same period.
The stock has been trading above its 200-day moving average since the past year and above its 50-day moving average since mid-January, indicating an uptrend.
AEE’s outperformance over the past year can be attributed to its systematic infrastructure upgrades and strong growth prospects. The company's strategic investments in grid strengthening and its ability to efficiently serve customers, especially with the increasing demand from data centers, are also contributing to its success.
AEE shares surged 1% following its Q4 earnings release on Feb. 13. The company reported a 20% increase in its total operating revenues, which amounted to $1.9 billion. This growth could be attributed to increased infrastructure investments and disciplined cost management. However, its EPS amounted to $0.77 for the quarter, falling short of the Wall Street estimates by 2.5%.
Nevertheless, its top rival, The Southern Company (SO) has lagged behind, with its shares declining marginally over the past six months but surging 27.3% over the past 52 weeks.
Analysts are maintaining a moderately optimistic outlook on the stock's prospects. Of the 16 analysts covering it, the consensus rating is “Moderate Buy.” It has a mean price target of $102.43, which indicates a potential upside of 3.7% from its current level.
