Core Insights - The investment landscape in 2026 is influenced by themes from 2025, including AI optimism, Federal Reserve policies, geopolitical tensions, and tariff risks [1] Sales Growth as an Indicator - Sales growth is a reliable metric for evaluating stocks, reflecting actual demand and underlying company momentum, unlike earnings which can be influenced by accounting practices [3] - Consistent sales growth indicates potential market share expansion and successful entry into new markets, serving as an early indicator of earnings upside and long-term value creation [3] Contextual Analysis of Sales Performance - Sales performance should be contextualized against peers, industry trends, and economic conditions to identify companies with durable growth and competitive advantages [4] - Durable growth supports predictable cash flows, allowing management to reinvest and maintain balance sheet strength without excessive debt [4] Stock Selection Criteria - Stocks are shortlisted based on criteria including 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [5] - Additional metrics include a Price/Sales (P/S) Ratio lower than industry average, positive changes in sales estimate revisions, operating margins above 5%, and Return on Equity (ROE) greater than 5% [6][7][8] Highlighted Stocks for 2026 - MKS Inc. (MKSI), Ameren Corporation (AEE), and ONE Gas, Inc. (OGS) are identified for their robust sales growth and strong financial fundamentals [10] - MKSI expects a sales growth of 6.9% in 2026, AEE projects 7.2%, and OGS forecasts a 5% increase, all while maintaining high cash flow and solid operating margins [10][11][12][13]

Core Insights - Ameren (AEE) is positioned to continue its earnings-beat streak, having surpassed earnings estimates in the last two quarters by an average of 2.17% [1][5] Earnings Performance - For the most recent quarter, Ameren reported earnings of $2.17 per share, exceeding the expected $2.1 per share by a surprise of 3.33% [2] - In the previous quarter, the company reported $1.01 per share against an estimate of $1 per share, resulting in a surprise of 1.00% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Ameren, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong potential for an earnings beat [5][8] - The current Earnings ESP for Ameren is +0.22%, suggesting increased analyst optimism regarding its near-term earnings potential [8] Zacks Rank and Success Rate - Ameren holds a Zacks Rank of 2 (Buy), which, when combined with a positive Earnings ESP, indicates a high likelihood of another earnings beat [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [6]

Group 1 - Ameren Corporation (NYSE:AEE) is recognized as one of the 8 most profitable utility stocks to buy currently [1] - UBS maintains a buy rating on Ameren Corporation while reducing its price target from $121 to $115 [2] - Morgan Stanley keeps an Equal Weight rating on Ameren Corporation and lowers its price target from $108 to $103, highlighting data centers as a key growth driver for utility performance in 2026 [2] Group 2 - Ameren Corporation revised its long-term EPS growth guidance to a compound annual rate of 6% to 8% from 2025 through 2029, with a 2025 EPS estimate between $4.90 and $5.10 per share [3] - The projected EPS for 2026 is between $5.25 and $5.45 [3] - Ameren operates as a regulated utility in Illinois and Missouri, with improved regulations in Missouri creating substantial investment opportunities, while management has effectively navigated regulatory challenges in Illinois [4] Group 3 - The stock of Ameren Corporation has increased by 12.21% year-to-date as of December 31, 2025 [4]

Industry Overview - The US electricity demand increased in 2025, driven by industrial electrification, AI workloads, and transportation, with peak demand expected to grow by 26% by 2035 [2] - Industrial electrification may add 25 GW by 2030, while data center usage could reach 176 GW, a fivefold increase from 2024 [2] - 93% of new capacity through July 2025 will be renewable, but supply expansion is slow, with 2 terawatts trapped in interconnection lines [2] - Reliability issues are escalating, with 15 natural disasters in H1 2025 causing over $1 billion in damages, and residential retail prices predicted to rise by 4.5% from 2024 [2] Company Insights - Ameren Corporation (NYSE:AEE) reported a TTM net income of $1.41 billion and a net income margin of 16.34%, with 34 hedge fund holders [9] - Dominion Energy, Inc. (NYSE:D) reported a TTM net income of $2.61 billion and a net income margin of 16.79%, with 35 hedge fund holders [13] - Ameren Corporation revised its long-term EPS growth guidance to a compound annual rate of 6% to 8% from 2025 through 2029, with a 2025 estimate midpoint of $4.95 [11] - Dominion Energy emphasized the importance of the Coastal Virginia Offshore Wind Project for national security and energy demand, stating it is critical for providing reliable electricity to key sectors [14][15]

Core Insights - The Federal Reserve has reduced interest rates by 25 basis points, bringing the federal funds rate to a target range of 3.5% to 3.75% [1] - The transition in leadership at the Federal Reserve in 2026 introduces uncertainty regarding future interest rate policies [4][5][8] Consumer Staples and Utilities Sector - Stocks in the Zacks Consumer Staples and Utilities sectors are recommended due to their lower volatility amid current market uncertainty [2][9] - Notable consumer staples stocks include Monster Beverage (MNST) and Mama's Creations, Inc. (MAMA), both rated Zacks Rank 1 (Strong Buy) [2][11] - Utilities stocks such as Dominion Energy (D), Ameren Corporation (AEE), and Sempra Energy (SRE) hold Zacks Rank 2 (Buy) and are expected to perform well [2][11] Low-Beta Stocks - The highlighted stocks are categorized as low-beta stocks, indicating they are less volatile compared to the broader market [3][12] - These stocks are projected to show earnings growth in 2026, supported by favorable Zacks Ranks [3] Individual Stock Performance - **Monster Beverage**: - Beta of 0.48, long-term earnings growth of 16.81%, and 2026 sales estimate of $9 billion reflecting a growth of 9.48% [16][17] - **Mama's Creations**: - Beta of 0.79, long-term earnings growth of 4.35%, and 2026 sales estimate of $218.2 million reflecting a growth of 26.49% [18][19] - **Dominion Energy**: - Beta of 0.70, long-term earnings growth of 10.26%, and 2026 sales estimate of $16.48 billion reflecting a growth of 5.14% [20][21] - **Ameren Corporation**: - Beta of 0.57, long-term earnings growth of 8.52%, and 2026 sales estimate of $9.71 billion reflecting a growth of 6.33% [22][23] - **Sempra Energy**: - Beta of 0.73, long-term earnings growth of 7.33%, and 2026 sales estimate of $14.74 billion suggesting growth of 8.5% [24][25]

Core Insights - Ameren Corporation (AEE) is focusing on capital investments, cost management, and increasing electricity production from clean sources, positioning itself for long-term growth through significant investments in clean energy infrastructure, including wind and solar projects [1][7] Growth Projection & Surprise History - The Zacks Consensus Estimate for 2025 earnings has increased by 0.80% to $5.01 per share, with revenue estimates of $9.08 billion indicating a year-over-year growth of 19.12% [2] - Ameren has experienced mixed earnings results, missing estimates in two of the last four quarters while beating in the other two, resulting in an average positive earnings surprise of 0.22% [2] Stable Investments - In the first nine months of 2025, Ameren invested $3.09 billion to enhance its infrastructure and customer service, with plans to invest a total of $26.3 billion from 2025 to 2029 [3] - The company is expected to benefit from a decline in interest rates to 3.50-3.75%, which will reduce capital servicing expenses and improve margins [3] Return on Equity (ROE) - Ameren's current ROE stands at 10.29%, surpassing the industry average of 9.60%, indicating more effective utilization of shareholders' funds compared to industry peers [4] Dividend - Ameren offers a dividend yield of 2.88%, significantly higher than the Zacks S&P 500 composite average of 1.39%, and has increased its quarterly dividend by 6% in February 2025, marking 12 consecutive years of dividend growth [5] Price Performance - Over the past year, Ameren's stock has increased by 10.9%, while the industry has seen a growth of 19.3% [6]

Core Insights - Ameren Corporation has elected Jamie L. Engstrom to its board of directors, effective January 1, 2026 [1][2] Group 1: Leadership Appointment - Jamie L. Engstrom has been the senior vice president and global chief information officer of Caterpillar Inc. since 2020, with prior experience as chief information officer of Caterpillar Financial Services Corporation from 2018 to 2020 [3] - Engstrom has held various leadership roles in information technology since joining Caterpillar in 1999, indicating a strong background in the field [3] Group 2: Strategic Importance - Martin J. Lyons, chairman, president, and CEO of Ameren, expressed that Engstrom's expertise in information systems, risk management, cybersecurity, and digital transformations will provide immediate value to Ameren's customers, shareholders, and the board [4] - The appointment aligns with Ameren's strategy to transform its business and leverage technology for reliable, resilient, and affordable energy [4] Group 3: Company Overview - Ameren Corporation serves 2.5 million electric customers and over 900,000 natural gas customers across a 64,000-square-mile area through its subsidiaries, Ameren Missouri and Ameren Illinois [5] - Ameren Illinois focuses on electric transmission and distribution as well as natural gas distribution, while Ameren Missouri provides electric generation, transmission, and distribution services [5]

Core Insights - The U.S. economy is experiencing persistent inflation and slowing job growth, leading the Federal Reserve to cut interest rates for the third time this year, while tariffs and supply-chain issues are impacting economic growth [1] - Retail investors are finding it challenging to interpret market signals and achieve solid returns in the current environment [1] Stock Selection Strategy - Traditional stock-picking methods focusing on sales growth are recommended, as sales growth offers a more reliable evaluation compared to earnings metrics [2][3] - Companies such as Vertiv Holdings Co (VRT), RenaissanceRe Holdings Ltd. (RNR), Ameren Corporation (AEE), Canadian Natural Resources Limited (CNQ), and FedEx Corporation (FDX) are highlighted for their strong sales growth and solid cash flow positions [2][10] Importance of Sales Growth - Sales growth is a clear indicator of a company's business momentum, reflecting genuine demand and market position [3] - Consistent sales growth can predict future earnings improvement and shareholder value creation [3][4] - Revenue trends are valuable both absolutely and relatively, supporting predictable cash flows and enabling management to reinvest in operations [4] Screening Criteria for Stocks - Stocks are shortlisted based on criteria including 5-Year Historical Sales Growth greater than industry average and Cash Flow exceeding $500 million [5] - Additional factors include a Price-to-Sales (P/S) ratio lower than the industry average, positive sales estimate revisions, high operating margins, and Return on Equity (ROE) above 5% [6][7][8] Highlighted Stocks - Vertiv (VRT) is expected to have a sales growth rate of 27.5% for 2025 and holds a Zacks Rank 1 [10][11] - Ameren (AEE) is projected to grow sales by 17.7% in 2025 and has a Zacks Rank 2 [10][13] - Canadian Natural Resources (CNQ) anticipates a sales growth of 5.9% for 2025, also holding a Zacks Rank 2 [10][14] - FedEx (FDX) expects a sales increase of 4.6% in fiscal 2026, with a Zacks Rank 2 [10][15] - RenaissanceRe (RNR) has a lower expected sales growth of 3.4% for 2025 but maintains a Zacks Rank 1 [10][12]

Core Insights - Ameren Corporation, based in Saint Louis, Missouri, operates in the utility sector, generating and distributing electricity and natural gas, with a market capitalization of $26.6 billion [1][2] Financial Performance - Ameren's stock reached an all-time high of $106.73 on October 20, currently trading 8.4% below that peak, and has declined 1.5% over the past three months, underperforming the Dow Jones Industrial Average's 5.6% increase during the same period [3] - Year-to-date, Ameren's stock has gained 9.7% and 7.2% over the past 52 weeks, compared to the Dow's 13% and 8.6% returns respectively [4] - Following the release of better-than-expected Q3 results on November 5, Ameren's topline surged 24.2% year-over-year to $2.7 billion, with adjusted EPS increasing by 16% year-over-year to $2.17, surpassing consensus estimates [5] Market Position - Ameren has outperformed its peer, Consolidated Edison, Inc., which gained 6.9% year-to-date and only a marginal 76 basis points over the past 52 weeks [6] - Among analysts covering Ameren, the consensus rating is a "Moderate Buy," with a mean price target of $113.69, indicating a potential upside of 16.3% from current levels [6]

Core Viewpoint - Ameren (AEE) is experiencing significant selling pressure, having declined 6.5% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts predicting better earnings than previously expected [1] Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 suggesting oversold conditions [2] - AEE's current RSI reading of 28.99 indicates that heavy selling may be exhausting, suggesting a potential bounce back towards equilibrium in supply and demand [5] Fundamental Analysis - There is a strong consensus among sell-side analysts that earnings estimates for AEE will improve, with a 0.2% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7] - AEE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [8]