Ameren Corporation (AEE) Buy or Sell Stock Guide
The analysis below may be helpful to you if you have any of the following questions about AEE stock:
- Is AEE a buy or a sell?
- Should I sell or hold AEE stock today?
- Is AEE a good buy / a good investment?
- What are AEE analyst opinions, recommendations, ratings?
Here are AEE stock buy reasons/signals:
1. Ameren's regulatory relationships have improved in Illinois. The IMAP provides regulatory stability through 2017.
2. Upcoming transmission projects offer higher returns than the company's state-regulated asset base and should support modest earnings growth.
3. Ameren's healthy dividend provides some downside protection for shareholders.
4. AEE profitability is improving. The YoY profit margin change was 0.42pp.
5. AEE forward dividend yield is 3.10%, higher than the industry (2.03%) and sector (1.92%) forward dividend yields.
Here are AEE stock sell reasons/signals:
1. Missouri remains one of the tougher regulatory environments in the nation, and recent state legislation promising more constructive regulation recently failed.
2. Given its large investment program, Ameren must request frequent rate increases with the potential for unfavorable opinions from regulators.
3. Ameren's $10.8 billion capital investment plan through 2021 at its regulated utilities could limit cash available for dividend growth.
4. AEE quarterly revenue growth was -7.60%, lower than the industry and sector average revenue growth (6.15% and 7.09%, respectively).
5. AEE short interest (days to cover the shorts) ratio is 5.35. The stock garners more short interest than the average industry, sector or S&P 500 stock.
What are your thoughts on AEE?
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