Here's Why AEE Stock Deserves a Place in Your Portfolio Right Now

Ameren AEE focuses on systematic investments in infrastructural upgrades to improve the reliability of its services. The company plans to invest up to $26.3 billion during 2025-2029 to strengthen its existing operations. AEE places significant emphasis on expanding its nuclear power portfolio. Given its strong growth and better future expansion plan, AEE makes for a solid investment option in the Zacks Utility-Electric Power industry.

Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.

AEE’s Growth Outlook & Surprise History

The Zacks Consensus Estimate for 2025 earnings per share (EPS) has increased 0.60% to $4.99 in the past 60 days. 

The Zacks Consensus Estimate for 2025 revenues is pegged at $8.85 billion, which indicates growth of 16.15% from the 2024 reported figure.

AEE’s long-term (three to five years) earnings growth rate is 8.01%.

Its earnings beat estimates in three of the trailing four quarters and missed the same in one, resulting in an average surprise of 0.22%.

AEE’s Return to Shareholders

AEE has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 71 cents per share, resulting in an annualized dividend of $2.84. AEE’s current dividend yield is 2.71%, better than the Zacks S&P 500 composite's average of 1.11%.

AEE’s Investment and Growth Focus

Ameren has secured power supply contracts for approximately 3 GW of capacity through signed construction agreements, driven by the booming data center industry and its growing demand from AI and cloud computing.

AEE is boosting its emission-free generation capabilities by investing heavily in clean energy infrastructure, including wind and solar projects. In an effort to build a reliable, balanced and sustainable energy portfolio that supports rising customer demand and clean energy objectives, the company has proposed constructing the 250-megawatt (MW) Reform Renewable Energy Center to the Missouri Public Service Commission.

The company is targeting the addition of 2,700 MW of renewable generation capacity by 2030 and a total of 4,200 MW by 2035, representing an estimated $6 billion investment by 2030 and $9 billion by 2035. Alongside renewables, AEE aims to strengthen grid reliability through battery storage, with plans to install 1,000 MW by 2030 and 1,400 MW by 2035, translating to about $1.5 billion in investment by 2030 and $2 billion by 2035.

AEE has plans to expand its nuclear operations. The company intends to extend the operational license of its current nuclear facility, the Callaway Energy Center, beyond 2044. By 2040, its preferred resource plan anticipates adding about 1,500 MW of new nuclear capacity.

AEE’s Return on Equity

Return on Equity (ROE) indicates how efficiently the company is utilizing shareholders’ funds to generate returns. At present, AEE’s ROE is 10.92%, higher than the industry average of 9.95%.

AEE’s Solvency Ratio

Ameren’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 3.0. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.

AEE’s Stock Price Performance

Over the past year, AEE’s shares have risen 13.73% but have lagged behind the industry’s growth of 20.2%.

Other Stocks to Consider

A few other top-ranked stocks from the same sector are CenterPoint Energy CNP, American States Water AWR and FirstEnergy FE, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CNP’s long-term earnings growth rate is 7.93%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.77, which implies year-over-year growth of 9.26%.

AWR’s long-term earnings growth rate is 5.65%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.32, which suggests year-over-year growth of 4.73%.

FE’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.54, which implies year-over-year decline of 3.42%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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