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Here's Why CNP Stock Deserves a Place in Your Portfolio Right Now
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Key Takeaways
CNP's 2025 EPS estimate of $1.76 signals 8.64% growth with revenues set to rise 6.16%.
CNP targets 7-9% long-term EPS growth supported by an 11% annual rate base expansion.
CNP shows stronger ROE, solid interest coverage and share gains outpacing the industry over the past year.
CenterPoint Energy (CNP - Free Report) benefits from rising electricity consumption, driven by the rapid electrification of transportation and buildings, along with increasing investments in renewable energy. Given its strong growth and better debt management, the stock makes a strong case for investment in the Zacks Utility-Electric Power industry space.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
CNP’s Growth Outlook
The Zacks Consensus Estimate for 2025 earnings per share (EPS) implies an increase of 8.64% year over year to $1.76.
The Zacks Consensus Estimate for 2025 revenues is pegged at $9.18 billion, which indicates year-over-year growth of 6.16%.
CenterPoint Energy projects long-term EPS to improve in the range of 7-9% annually. Our projection for CNP’s long-term (three to five years) earnings growth rate is 7.93%.
CNP’s Return to Shareholders
CNP has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 22 cents per share, resulting in an annualized dividend of 88 cents. CNP’s current dividend yield is 2.19%, better than the Zacks S&P 500 composite's average of 1.10%.
CNP’s Investment Focus
CenterPoint Energy focuses on customer-driven capital investment. It laid a foundational $65 billion capital plan for 10 years, with $10 billion in identified incremental opportunities. The company expects rate base growth to exceed 11% annually through 2030.
The company plans to recover approximately 85% of its capital investment through forward test year rate cases and interim trackers by 2030.
CNP’S Return on Equity
Return on Equity (ROE) indicates how efficiently the company is utilizing shareholders’ funds to generate returns. At present, CNP’s ROE is 10.25%, higher than the industry average of 9.95%.
CNP’s Solvency Ratio
CenterPoint Energy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.3. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.
CNP’s Stock Price Performance
Over the past year, CNP’s shares have risen 28% compared with the industry’s growth of 20.6%.
FE’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.54, which implies declined year-over-year growth of 3.42%.
AEE’s long-term earnings growth rate is 8.01%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which implies a year-over-year rise of 7.78%.
LNT’s long-term earnings growth rate is 6.57%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.21, which suggests year-over-year growth of 5.59%.
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Here's Why CNP Stock Deserves a Place in Your Portfolio Right Now
Key Takeaways
CenterPoint Energy (CNP - Free Report) benefits from rising electricity consumption, driven by the rapid electrification of transportation and buildings, along with increasing investments in renewable energy. Given its strong growth and better debt management, the stock makes a strong case for investment in the Zacks Utility-Electric Power industry space.
Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.
CNP’s Growth Outlook
The Zacks Consensus Estimate for 2025 earnings per share (EPS) implies an increase of 8.64% year over year to $1.76.
The Zacks Consensus Estimate for 2025 revenues is pegged at $9.18 billion, which indicates year-over-year growth of 6.16%.
CenterPoint Energy projects long-term EPS to improve in the range of 7-9% annually. Our projection for CNP’s long-term (three to five years) earnings growth rate is 7.93%.
CNP’s Return to Shareholders
CNP has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 22 cents per share, resulting in an annualized dividend of 88 cents. CNP’s current dividend yield is 2.19%, better than the Zacks S&P 500 composite's average of 1.10%.
CNP’s Investment Focus
CenterPoint Energy focuses on customer-driven capital investment. It laid a foundational $65 billion capital plan for 10 years, with $10 billion in identified incremental opportunities. The company expects rate base growth to exceed 11% annually through 2030.
The company plans to recover approximately 85% of its capital investment through forward test year rate cases and interim trackers by 2030.
CNP’S Return on Equity
Return on Equity (ROE) indicates how efficiently the company is utilizing shareholders’ funds to generate returns. At present, CNP’s ROE is 10.25%, higher than the industry average of 9.95%.
CNP’s Solvency Ratio
CenterPoint Energy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.3. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.
CNP’s Stock Price Performance
Over the past year, CNP’s shares have risen 28% compared with the industry’s growth of 20.6%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are FirstEnergy (FE - Free Report) , Ameren (AEE - Free Report) and Alliant Energy (LNT - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FE’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.54, which implies declined year-over-year growth of 3.42%.
AEE’s long-term earnings growth rate is 8.01%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which implies a year-over-year rise of 7.78%.
LNT’s long-term earnings growth rate is 6.57%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.21, which suggests year-over-year growth of 5.59%.