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Reasons to Add CenterPoint (CNP) to Your Portfolio Right Now

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CenterPoint Energy, Inc. (CNP - Free Report) has been registering growth in customer volumes and investing substantially to expand operations as well as meet increasing utility demand.

Let’s focus on the factors that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Growth Projections

The Zacks Consensus Estimate for CenterPoint Energy’s 2022 and 2023 earnings per share is pegged at $1.39 and $1.52, respectively. The 2022 and 2023 estimates indicate increases of 0.7% and 2%, respectively, in the past 60 days.

The Zacks Consensus Estimate for 2022 and 2023 revenues is pegged at $8.65 billion and $8.83 billion, indicating year-over-year growth of 3.6% and 2.1%, respectively.

Regular Investments

CenterPoint Energy makes consistent investments to upgrade and maintain the existing infrastructure as well as expand operations. The company anticipates investing $19.3 billion from 2022 through 2026. These funds will be utilized primarily to maintain reliability and safety, increase resiliency as well as expand CenterPoint’s systems through value-added projects. The company expects this systematic investment to drive 6-8% annual earnings growth through 2030.

Regular Dividend & Long-Term Earnings Growth

Currently, CenterPoint has a dividend yield of 2.2%, higher than the Zacks S&P 500 composite’s average of 1.67%.
The company’s long-term (three to five years) earnings growth is currently pegged at 3.9%.

Return on Equity (ROE)

ROE is the measure of a company’s efficiency in utilizing shareholders’ funds. CenterPoint has a trailing 12-month ROE of 10.92%, better than the industry average of 10.38%.

Price Performance

In the past year, the stock has gained 24.7% compared with the industry’s growth of 10%.


Zacks Investment Research
Image Source: Zacks Investment Research

Other Stocks to Consider

Some other top-ranked stocks in the same sector are NextEra Energy (NEE - Free Report) , The Southern Company (SO - Free Report) and Alliant Energy (LNT - Free Report) , each currently carrying a Zacks Rank #2 (Buy).

NextEra Energy, Southern Company and Alliant Energy delivered earnings surprises of 5.5%, 9.4% and 5.8%, respectively, in the trailing four quarters on average.

The Zacks Consensus Estimate for 2022 earnings of NextEra Energy, Southern Company and Alliant Energy has moved 1.8%, 1.9% and 1.8%, respectively, from the year-earlier reported numbers.

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