AEE Should I Buy
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Ameren Corp (AEE) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has shown positive earnings growth and operational improvements, the stock appears overbought based on technical indicators, and the current price is near resistance levels. Additionally, the lack of significant trading signals and mixed analyst sentiment suggests waiting for a better entry point.
The stock is in a bullish trend with moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram (0.387). However, the RSI of 85.263 indicates overbought conditions, suggesting a potential pullback. The current price of $109.10 is near the R1 resistance level of $109.072, with the next resistance at $111.081.
Ameren reported strong EPS growth for 2025 (+8.6% YoY) and Q4 EPS exceeding estimates.
Approval for an 800-megawatt natural gas energy center and battery storage facility, enhancing long-term growth potential.
Successful Smart Energy Plan upgrades improving reliability and customer satisfaction.
Revenue declined by 8.19% YoY in Q4 2025, indicating potential challenges in top-line growth.
Mixed analyst sentiment with some lowering price targets and expressing concerns about slower data center developments in Missouri.
Overbought technical conditions and lack of significant trading signals.
Ameren's Q4 2025 financials showed mixed results: Revenue declined by 8.19% YoY to $1.78 billion, but net income increased by 21.74% YoY to $252 million. EPS rose by 19.48% YoY to $0.92, and gross margin improved significantly to 57.52% (+32.44% YoY). The company also provided 2026 EPS guidance of $5.25-$5.45, reflecting confidence in future growth.
Analysts have mixed ratings on Ameren. Recent updates include a price target increase to $110 by BofA with a Neutral rating, and a reduction to $116 by RBC Capital with a Sector Perform rating. While some analysts highlight growth opportunities, others express caution due to slower data center developments and sector-wide challenges.
