Generally speaking, utility firms like CenterPoint Energy (CNP) don’t exactly get the heart rate pumping. While vital to broader infrastructural considerations, assets like CNP stock tend to be boring. However, with the benchmark equity indices again printing disappointing performance stats recently, now might be a good time to consider adding CenterPoint to your portfolio.
Fundamentally, the enterprise – which specializes in electric and natural gas services in select markets – benefits from a natural monopoly. Essentially, would-be competitors don’t even bother due to the steep barriers to entry. As well, utility firms tend to be entrenched. Just from the regulatory barriers alone – obtaining the necessary licenses and permits – can be incredibly lengthy, costly and complex.
