With a market cap of $19.8 billion, CenterPoint Energy, Inc. (CNP) focuses on electric transmission, distribution, and natural gas services. Based in Houston, Texas, the company serves millions of customers across several U.S. states, managing extensive infrastructure for reliable energy delivery.
Shares of the energy delivery company have underperformed the broader market over the past 52 weeks. CNP stock has risen 13.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 36.8%. In 2024, shares of CNP are up 6.4%, compared to SPX's 25.7% gain on a YTD basis.
Looking closer, CNP has also lagged behind the Utilities Select Sector SPDR Fund's (XLU) 30.2% return over the past 52 weeks and a 25% YTD gain.
Despite reporting weaker-than-expected Q3 earnings of $0.31 per share and revenues of $1.9 billion, shares of CNP rose 1.5% on Oct. 28 as investors responded positively to the company's reaffirmed 2024 EPS guidance of $1.61 - $1.63, showing stability despite recent challenges. Additionally, CenterPoint's 2025 EPS guidance of $1.74 - $1.76 surpassed consensus estimates. The company’s updates on the Greater Houston Resiliency Initiative, especially advancements in grid hardening and automation to enhance reliability, reassured investors.
For the current fiscal year, ending in December, analysts expect CNP's EPS to grow 8% year-over-year to $1.62. The company's earnings surprise history is mixed. It beat or met the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 15 analysts covering the stock, the consensus rating is a “Hold.” That’s based on three “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than three months ago, with four “Strong Buy” ratings on the stock.
On Oct. 16, Wells Fargo raised CenterPoint Energy's price target to $32 and maintained an “Equal Weight” rating, due to a favorable sector outlook as macroeconomic headwinds stabilize and strong power demand continues ahead of the Q3/EEI season.
As of writing, CNP is trading below the mean price target of $31.08. The Street-high price target of $33 implies a potential upside of just 8.6%.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
