CenterPoint Energy Faces Challenges Despite Strong Market Presence
CenterPoint Energy, Inc. (CNP), based in Houston, Texas, is actively involved in power generation and distribution. With a market cap of $20.9 billion, the company engages in electricity transmission and distribution, natural gas distribution, and interstate pipeline operations, showcasing its significant role in the energy sector.
As a large-cap stock, CNP certainly represents substantial size and influence in the regulated electric utilities industry. The company’s ongoing efforts to reduce its carbon footprint, combined with a diverse portfolio and strategic investments in infrastructure, position it well in a rapidly changing energy landscape.
However, CNP saw a decline of 2.8% from its 52-week high of $33, reached on December 3. In the past three months, the stock has dropped 13.7%, although it still outperformed the Utilities Select Sector SPDR Fund ETF’s (XLU) 2.7% losses during that same period.
Looking at longer trends, CNP shares have increased by 12.3% year-to-date and 11.1% over the last year. This growth falls short compared to XLU, which recorded YTD gains of 21.6% and 20.4% over the past year.
Signs of a bullish trend are evident, as CNP has traded above its 50-day moving average since mid-September, with minimal volatility. The stock has also remained above its 200-day moving average since late September.
Notably, CNP’s performance has been affected by Hurricane Beryl, which caused extensive disruptions, power outages, and delays in restoration efforts, impacting the company’s market momentum.
On October 28, CNP shares closed up by 1.5% after the company reported its Q3 results. The adjusted earnings per share (EPS) of $0.31 fell short of Wall Street’s expectation of $0.36. Revenue also missed forecasts, coming in at $1.86 billion compared to the anticipated $1.88 billion. The company anticipates a full-year adjusted EPS ranging from $1.61 to $1.63.
In a competitive landscape, Public Service Enterprise Group Incorporated (PEG) has surpassed CNP, showing a robust 40.7% increase year-to-date and 39.8% growth over the past year.
Wall Street analysts maintain a moderately optimistic outlook on CNP. The stock holds a consensus “Moderate Buy” rating from 16 analysts, with an average price target of $32.36 indicating a potential for slight upside from current levels.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy
here.
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