The Zacks Analyst Blog Highlights Ameren, CMS Energy, Bloom Energy and Stem

March 18, 2025

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Zacks Equity Research

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Chicago, IL – March 18, 2025 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Ameren AEE, CMS Energy CMS, Bloom Energy BE and Stem Inc. STEM.

As industries across the board are rapidly embracing renewable energy worldwide for a more sustainable future, the need for reliable energy storage solutions has surged significantly over the past decade. This is because a few renewable sources like solar and wind are intermittent and battery storage systems help bridge this gap by storing excess energy produced during peak generation periods and releasing it when needed.

With global electricity consumption projected to increase at the fastest pace in years during the 2025-2027 time period (as predicted by the International Energy Agency in its February 2025 report), the growth prospects for key players in the renewable energy and battery storage space remain promising. Notably, utility providers like Ameren and CMS Energy which have been rapidly expanding their renewable generation portfolio, are capitalizing on the aforementioned growth opportunities. On the other hand, stocks like Bloom Energy, which provides a solid oxide fuel cell-based power generation platform, and Stem Inc., which offers AI-enabled software and services empowering its customers to operate clean energy assets, should also find a place in a clean energy investor’s portfolio.

It is imperative to mention in this context that increasing industrial production, rapidly growing data centers and electric vehicles (EVs) usage worldwide, along with increasing use of air conditioning due to enhancing global warming, are expected to take global electricity demand to new heights in the coming years. To this end, theInternational Energy Agency (IEA) forecasts that in 2025, renewables, like solar, wind and hydropower, will provide more than one-third of total electricity generation globally, overtaking coal. This, in turn, should also boost the use of storage solutions that play a pivotal role in the global transition to clean energy.

From an investor’s perspective, choosing companies from the renewable energy and battery storage space should be a profitable opportunity. This is because demand for essential services like electricity remains stable, even during economic downturns, thereby ensuring a steady revenue and cash flow stream for the aforementioned stocks. Additionally, government incentives, policy support, the global push toward net-zero emissions and rising corporate investments in clean energy drive long-term growth.

Also, technological advancements have significantly lowered renewable energy production costs, enhancing its competitiveness. These factors collectively support the sustainable expansion of renewable energy and storage companies, positioning them as attractive investment opportunities in an evolving global energy landscape.

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Ameren, which generates and distributes electricity, has been steadily investing in offering electricity through cleaner sources of energy generation, such as solar, wind, natural gas, hydro and nuclear power. To this end, it is imperative to mention that the company has 1,200 MW of approved generation under construction as of Dec 31, 2024.

Looking ahead, AEE targets to expand its renewable portfolio by adding 4,200 MW of renewable generation by 2035. It also aims to add 1,000 MW of battery storage and 1,600 MW of natural gas-fired simple-cycle generation by 2030. It also aims to add 1,500 MW of new nuclear energy generation by 2045.

To facilitate this renewable expansion, in February 2025, the company’s Ameren Missouri segment filed an update to its Smart Energy Plan, which includes a five-year investment worth $16.2 billion during the 2025-2029 period to upgrade the company’s grid, harden its poles and conductors, as well as accommodate more renewable energy. Such an elaborate investment plan reflects this Zacks Rank #2 (Buy) stock’s long-term vision of delivering reliable, affordable and cleaner energy to all its customers. The Zacks Consensus Estimate for AEE’s 2025 sales and EPS implies year-over-year growth of 7.3% and 6.7%, respectively.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CMS Energy, primarily an electric and gas utility company, has been rapidly expanding its renewable generation portfolio in recent times. As part of its long-term clean energy strategy, in November 2024, the company filed its 20-year renewable energy plan, which includes the addition of 9 gigawatts (GW) of solar and 4 GW of wind to its generation portfolio during 2025-2045.

It also aims to power more than 1,500 new fast-charging locations and serve 1 million EVs in Michigan by 2030, as well as integrate 850 MW of battery storage to its portfolio during 2027-2045. To this end, CMS Energy aims to spend $5.2 billion on renewables, including investments in wind, solar and hydroelectric generation resources in the 2025-2029 period. Such strategies should further enable this Zacks Rank #2 stock to duly meet its target of decarbonizing its portfolio by 100% by 2040. The Zacks Consensus Estimate for CMS’ 2025 sales and EPS implies year-over-year growth of 7.3% and 7.8%, respectively.

Bloom Energy manufactures one of the most advanced and versatile fuel cell energy platforms. With approximately 1.4 GW of BE’s Energy Server systems deployed in more than 1,000 locations and nine countries, BE’s fuel cell platform empowers businesses, essential services, critical infrastructure, utilities, and communities with resilient, reliable, and sustainable energy solutions.

In February 2025, Bloom Energy announced an expansion of its longstanding relationship with Equinix, the world’s digital infrastructure company. Bloom’s fuel cells allow Equinix to generate on-site power at its data centers more sustainably than typical grid-delivered energy. The latest collaboration should further strengthen this Zacks Rank #2 stock’s position in the rapidly evolving renewable energy space. The Zacks Consensus Estimate for BE’s 2025 sales and EPS implies year-over-year growth of 18.3% and 35.7%, respectively.

Over the last 15 years, Stem Inc. has grown into one of the most experienced clean energy software providers in the world, achieving milestones like deploying software with multiple Fortune 500 companies, operating the largest virtual power plant in California, and becoming the de facto standard for commercial and industrial solar asset management software. More than 16,000 global customers rely on Stem as of Dec 31, 2024, to maximize the value of their clean energy projects and portfolios.

In 2024, the company joined hands with Ameresco for a 313 megawatt-hour (MWh) multiple-site project where STEM provided battery storage hardware, system design support, and its Athena software to minimize costs and maximize efficiency. In January 2025, STEM revealed that its PowerTrack Web will support the commercial operation of a 484 MW solar portfolio for Neovolt, one of the largest asset owners in Hungary. In March, it was announced that STEM’s PowerTrack software platform supports Summit Ridge Energy in optimizing the performance and management of its growing commercial solar portfolio of 514 MW.

These announcements are indicative of the solid expansion trends Stem Inc. is enjoying in the renewable energy and battery storage space. The stock carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for STEM’s 2025 sales implies year-over-year growth of 1.3%.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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