Based in Saint Louis, Missouri, Ameren Corporation (AEE) is a public utility holding company that generates and distributes electricity and natural gas to residential, commercial, industrial, and wholesale end markets. Valued at a market cap of $25.9 billion, the company generates electricity through coal, nuclear, and natural gas, as well as renewable sources, such as hydroelectric, wind, methane gas, and solar.
This utility company’s shares have massively outpaced the broader market over the past 52 weeks. Ameren has soared 41.5% over this time frame, while the broader S&P 500 Index ($SPX) hasgained 20.7%. Moreover, the stock is up 9% on a YTD basis, compared to SPX’s 3.1% rise in 2025.
Zooming in further, AEE’s outperformance looks even more pronounced when compared to the Utilities Select Sector SPDR Fund’s (XLU) 31.1% return over the past 52 weeks and 4.4% gain on a YTD basis.
Shares of Ameren fell 1.4% following its weaker-than-expected Q3 earnings release on Nov. 6. While revenue increased by 5.3% year-over-year to $2.2 billion, it missed analysts' forecasts by 1.8%. Adjusted earnings per share of $1.87 remained flat compared to the previous year and also missed estimates of $1.91. This disappointing performance was primarily driven by a 2.8% decline in electricity sales volume and a 9.8% increase in operating expenses.
Adding to investor concerns, Ameren lowered its full-year 2024 GAAP earnings guidance to a range of $4.34-$4.48 and anticipates higher interest expenses in 2025. However, the company maintained its non-GAAP fiscal 2024 earnings per share guidance at $4.55-$4.69.
For FY2024, which ended in December 2024, analysts expect AEE’s EPS to grow 5.7% year over year to $4.63. The company’s earnings surprise history is disappointing. It surpassed the Wall Street estimates in one of the last four quarters while missing on three other occasions.
Among the 16 analysts covering the stock, the consensus rating is a “Moderate Buy.” This is based on nine “Strong Buy,” six “Hold,” and one “Strong Sell” rating.
On Jan. 30, BMO Capital Markets maintained an “Outperform” rating on Ameren and raised its price target to $100, which indicates a 2.9% potential upside from the current levels.
As of writing, the company is trading 2.7% above its mean price target of $94.64. The Street-high price target of $104 suggests an upside potential of 7%.
