Core Viewpoint - CenterPoint Energy (CNP) is positioned favorably due to rising electricity consumption driven by electrification trends and renewable energy investments, making it a strong investment candidate in the Zacks Utility-Electric Power industry [1] Group 1: Growth Outlook - The Zacks Consensus Estimate for CNP's 2025 earnings per share (EPS) is $1.76, reflecting an 8.64% year-over-year increase [2] - The projected revenue for 2025 is $9.18 billion, indicating a year-over-year growth of 6.16% [2] - Long-term EPS growth is expected to improve at a rate of 7-9% annually, with a projected long-term earnings growth rate of 7.93% over three to five years [2] Group 2: Return to Shareholders - CNP has consistently increased shareholder value through dividends, currently paying a quarterly dividend of 22 cents per share, leading to an annualized dividend of 88 cents [3] - The current dividend yield stands at 2.19%, surpassing the Zacks S&P 500 composite average of 1.10% [3] Group 3: Investment Focus - The company has established a $65 billion capital plan over 10 years, with $10 billion in identified incremental opportunities [4] - CNP anticipates rate base growth exceeding 11% annually through 2030 and plans to recover approximately 85% of its capital investment through rate cases and interim trackers by 2030 [4] Group 4: Financial Metrics - CNP's Return on Equity (ROE) is currently 10.25%, which is higher than the industry average of 9.95% [5] - The times interest earned (TIE) ratio at the end of Q3 2025 is 2.3, indicating strong solvency and the ability to meet long-term debt obligations [6] Group 5: Stock Performance - Over the past year, CNP's shares have increased by 28%, outperforming the industry's growth of 20.6% [9]

Group 1 - CenterPoint Energy Inc. stock is currently trading at $40.19, reflecting a 0.02% increase, with a 0.37% increase over the past month and a 28.12% increase over the past year, indicating optimism among long-term shareholders [1] - The price-to-earnings (P/E) ratio is a critical metric for assessing the company's market performance relative to historical earnings and industry standards [5] - CenterPoint Energy has a P/E ratio of 25.43, which is lower than the Multi-Utilities industry average of 26.95, suggesting potential undervaluation or weaker future performance expectations compared to peers [6] Group 2 - A low P/E ratio can indicate undervaluation but may also reflect weak growth prospects or financial instability, highlighting the need for cautious interpretation [10] - The P/E ratio should be considered alongside other financial metrics, industry trends, and qualitative factors for a comprehensive analysis of the company's financial health [10]

Core Insights - Ascendis Pharma announced pivotal Week 52 results from the ApproaCH Trial of TransCon® CNP (navepegritide) in children with achondroplasia, showing significant improvements in annualized growth velocity compared to placebo [1][4][5] - The trial demonstrated favorable impacts on body proportionality and health-related quality of life, with a safety profile similar to placebo [1][5][6] Group 1: Trial Results - The ApproaCH Trial was a randomized, double-blind, placebo-controlled study involving 84 children aged 2-11, with a 2:1 randomization to receive either TransCon CNP at 100 μg/kg/week or placebo over 52 weeks [3] - Treatment with TransCon CNP resulted in a significant increase in annualized growth velocity (AGV) and improvements in lower-limb alignment and body proportionality compared to placebo [1][4] - The trial also reported improvements in health-related quality of life across several domains, without accelerating bone age or negatively affecting spinal curvature [5] Group 2: Treatment Profile - TransCon CNP is an investigational prodrug designed for continuous inhibition of the overactive FGFR3 pathway in achondroplasia, administered once weekly [2][6] - The treatment showed a low rate of injection site reactions and no observed symptomatic hypotension or bone fractures during the trial [5] - The FDA has placed TransCon CNP under Priority Review, with a target date of November 30, 2025, and it is also under review by the European Medicines Agency [6] Group 3: Condition Overview - Achondroplasia is a rare genetic condition affecting over 250,000 individuals globally, leading to various medical complications beyond skeletal dysplasia [7][8] - Complications include spinal abnormalities, impaired muscle strength, and chronic pain, which can significantly impact quality of life and require multiple surgeries [8]

Core Viewpoint - Investors in the Utility - Electric Power sector should consider PG&E (PCG) and CenterPoint Energy (CNP) as potential value opportunities, with PG&E currently presenting a superior value option based on valuation metrics [1][6]. Valuation Metrics - Both PG&E and CenterPoint Energy have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - PG&E has a forward P/E ratio of 11.04, significantly lower than CenterPoint Energy's forward P/E of 22.42, suggesting that PG&E is undervalued relative to its earnings potential [5]. - The PEG ratio for PG&E is 0.69, while CenterPoint Energy's PEG ratio is 2.83, further indicating that PG&E is a better value option when considering expected earnings growth [5]. - PG&E's P/B ratio is 1.19, compared to CenterPoint Energy's P/B of 2.34, reinforcing the notion that PG&E is more attractively priced relative to its book value [6]. - Based on these valuation metrics, PG&E earns a Value grade of A, while CenterPoint Energy receives a Value grade of C, highlighting the relative strength of PG&E as a value investment [6].

Core Insights - CenterPoint Energy, Inc. (CNP) is a major player in power generation and distribution, with a market cap of $25.3 billion [1] Performance Overview - CNP shares have outperformed the broader market, gaining 31.5% over the past year compared to the S&P 500 Index's 17.5% increase [2] - Year-to-date, CNP stock is up 22.5%, exceeding the S&P 500's 15.6% gains [2] - Compared to the Utilities Select Sector SPDR Fund (XLU), which gained 13.4% over the past year, CNP's performance is notably stronger [3] Financial Results - In Q3, CNP reported an adjusted EPS of $0.50, surpassing Wall Street's expectation of $0.46 [4] - The company's revenue for the quarter was $1.99 billion, exceeding forecasts of $1.95 billion [4] - CNP anticipates full-year adjusted EPS in the range of $1.75 to $1.77 [4] Analyst Expectations - For the current fiscal year, analysts project CNP's EPS to grow by 8.6% to $1.76 on a diluted basis [5] - The consensus among 18 analysts covering CNP stock is a "Moderate Buy," with seven "Strong Buy" ratings and eleven "Holds" [5] - Recent analyst ratings have become more bullish, with six analysts now suggesting a "Strong Buy" [6] Price Targets - Wells Fargo analyst Sarah Akers has set a "Buy" rating on CNP with a price target of $44, indicating a potential upside of 13.2% [6] - The mean price target is $43, representing a 10.7% premium to current levels, while the highest target of $46 suggests an upside potential of 18.4% [6]

Group 1 - CenterPoint Energy Inc. shares are currently trading at $37.87, reflecting a 0.97% drop, with a 3.96% decrease over the past month but a 28.16% increase over the past year [1] - The company's price-to-earnings (P/E) ratio is 24.2, which is lower than the Multi-Utilities industry average P/E ratio of 68.46, suggesting potential undervaluation or weaker future performance expectations [6] - Long-term shareholders may want to evaluate the P/E ratio as a tool to assess market performance against historical earnings and industry standards [5][10] Group 2 - A lower P/E ratio could indicate that shareholders do not expect the stock to perform better in the future or that the company is undervalued [5] - The P/E ratio should be used cautiously, as it can reflect either undervaluation or weak growth prospects, and should be considered alongside other financial metrics and qualitative factors [10]

Core Insights - The Federal Reserve cut interest rates by 25 basis points, marking the second cut this year, but investor sentiment remained low due to comments from Fed Chairman Jerome Powell regarding future rate cuts [1][5][10] Interest Rate Cut - The Federal Reserve's benchmark policy rate is now in the range of 3.75-4% following the quarter percentage point cut [5] - Powell indicated that while another rate cut in December is not ruled out, various factors need to be considered, leading to uncertainty among investors [6][8] Inflation and Labor Market - Inflation is nearing the Fed's 2% target, but concerns persist due to rising commodity prices influenced by tariffs [7] - The labor market is weakening, with fewer job additions, raising recession concerns, and the rate cut was primarily aimed at supporting this struggling market [8] Defensive Stock Recommendations - Defensive stocks from the utilities and consumer staples sectors are recommended to mitigate market volatility, including: - **Atmos Energy Corporation (ATO)**: Expected earnings growth of 8.1%, beta of 0.74, and dividend yield of 1.99% [9][10][11] - **CenterPoint Energy, Inc. (CNP)**: Expected earnings growth of 8.6%, beta of 0.57, and dividend yield of 2.23% [12][13] - **Duke Energy Corporation (DUK)**: Expected earnings growth of 7.3%, beta of 0.44, and dividend yield of 3.39% [14][15] - **Service Corporation International (SCI)**: Expected earnings growth of 8.8%, beta of 0.89, and dividend yield of 1.58% [16][17] Investment Strategy - The recommended investment strategy focuses on low-beta stocks with high dividend yields and favorable Zacks rankings to provide stability in a volatile market [4][10]

Core Insights - CenterPoint Energy, Inc. (CNP) reported third-quarter 2025 adjusted earnings of 50 cents per share, exceeding the Zacks Consensus Estimate of 46 cents by 8.7% and reflecting a 61.3% increase from the previous year's figure of 31 cents [1][8] - The company's GAAP earnings were 45 cents per share, marking a 50% increase from the prior-year quarter's figure of 30 cents [1] CNP's Revenues - CNP generated revenues of $1.99 billion, surpassing the Zacks Consensus Estimate by 0.5% and showing a 7.1% increase compared to the year-ago quarter's revenue of $1.86 billion [2][8] CNP's Operational Results - Total expenses for the third quarter increased by 3.8% year over year to $1.49 billion [3] - The company reported an operating income of $502 million, up from $424 million in the prior year [3][8] - Interest expenses and other finance charges totaled $238 million, reflecting a 24.6% increase from $191 million recorded in the previous year [3] CNP's Financial Condition - As of September 30, 2025, CenterPoint Energy had cash and cash equivalents of $37 million, an increase from $24 million as of December 31, 2024 [4] - The total long-term debt was $19.40 billion, down from $20.40 billion as of December 31, 2024 [4] - Net cash flow from operating activities amounted to $1.71 billion, compared to $1.25 billion in the year-ago period [4] CNP's Capital Expenditure - The total capital expenditure was $3.39 billion as of September 30, 2025, compared to $2.50 billion in the prior year [5] CNP's 2025 Guidance - CenterPoint Energy expects to generate adjusted earnings per share in the range of $1.75-$1.77, with the Zacks Consensus Estimate for 2025 earnings at $1.76 per share, aligning with the midpoint of the company's guidance [6] CNP's Zacks Rank - CNP currently holds a Zacks Rank 2 (Buy) [7]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.45 on a GAAP basis and $0.50 on a non-GAAP basis for Q3 2025, representing a 60% increase from $0.31 in Q3 2024 [2][14][8] - The company reiterated its full-year 2025 non-GAAP EPS guidance range of $1.75 to $1.77, indicating a 9% growth over 2024 results of $1.62 per share [9][22] Business Line Data and Key Metrics Changes - Throughput in the Houston Electric business increased by 9% year to date, with industrial customer class throughput up over 17% quarter over quarter and over 11% year to date [7][8] - The company filed for interim capital recovery trackers at Houston Electric, with a $15 million annual revenue requirement increase approved and a $55 million increase pending [16] Market Data and Key Metrics Changes - The greater Houston area is experiencing diverse growth drivers, with significant increases in industrial activity, particularly in energy refining, processing, and exports [7][36] - The Port of Houston saw an 18% increase in exports quarter over quarter, contributing to the strong demand for electric services [36] Company Strategy and Development Direction - The company introduced a 10-year financial plan with a capital investment plan of at least $65 billion, focusing on economic development and operational efficiency [4][5] - The recent sale of the Ohio Gas LDC is expected to generate approximately $2.6 billion in gross proceeds, allowing for reinvestment in higher growth jurisdictions, particularly in Texas [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving non-GAAP EPS growth at the mid to high end of the 7% to 9% annual guidance from 2026 through 2028, and 7% to 9% annually through 2035 [9][23] - The company is focused on disciplined capital allocation and enhancing its investment portfolio in Texas, which will represent 70% of its investments post-Ohio sale [19][12] Other Important Information - The company anticipates closing the Ohio Gas LDC transaction in Q4 2026, which will provide additional flexibility for future capital investments [11][19] - The company is targeting a trailing 12 months adjusted FFO-to-debt ratio of 14%, with expectations for improvement through upcoming securitization bonds [21] Q&A Session Summary Question: How is the company viewing balance sheet capacity from the Ohio transaction? - Management indicated that the transaction will reduce operational debt and provide a net benefit of approximately $400 million to the plan [31][32] Question: What sectors are driving the industrial sales growth in Texas? - Management noted strong demand from energy refining, processing, and exports, with significant activity at the Port of Houston contributing to growth [36] Question: Can you provide more details on the asset sale and its impact on earnings? - The sale is expected to be beneficial for financing and earnings, with a reduction in cash lag and plans to reinvest in Texas gas and electric projects [45][46] Question: What is the timeline for the Advanced Metering Infrastructure rollout? - The pilot for the new metering infrastructure is expected to begin in 2026, with broader deployment anticipated in 2027 [56][57] Question: How does the company view the opportunities in mobile generation assets? - Management highlighted strong market conditions for medium-sized units and plans to remarket larger units by early 2027, which could provide cash flow benefits [60][61]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share (EPS) of $0.45 on a GAAP basis and $0.50 on a non-GAAP basis for Q3 2025, representing a 60% increase compared to $0.31 in Q3 2024 [2][7][13]. - The company reiterated its full-year 2025 non-GAAP EPS guidance range of $1.75-$1.77, indicating a 9% growth over 2024 results of $1.62 per share [8][22]. Business Line Data and Key Metrics Changes - Throughput in the Houston Electric business increased by 9% year to date, with industrial customer class throughput up over 17% quarter over quarter and over 11% year to date [6]. - The company filed for interim capital recovery trackers at Houston Electric, with a $15 million annual revenue requirement increase approved and a $55 million increase pending approval [15]. Market Data and Key Metrics Changes - The greater Houston area is experiencing significant growth, with peak load demand forecasted to increase by 10 GW by 2031, representing a nearly 50% increase over the next six years [5]. - The company anticipates that electric load demand will double to approximately 42 GW by the middle of the next decade, supporting a strong investment profile [5]. Company Strategy and Development Direction - The company introduced a 10-year financial plan with a capital investment plan of at least $65 billion, focusing on economic development, operational efficiency, and value for investors [4]. - The recent sale of the Ohio Gas LDC is expected to generate approximately $2.6 billion in gross proceeds, allowing for redeployment into higher growth jurisdictions, particularly in Texas [9][10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving non-GAAP EPS growth at the mid to high end of the 7%-9% annual growth guidance from 2026 through 2028 and 7%-9% annually through 2035 [6][23]. - The company highlighted the importance of a diverse set of growth drivers in the Houston area, which is not reliant on any single industry [6]. Other Important Information - The company expects to close the Ohio Gas LDC transaction in Q4 2026, with after-tax net cash proceeds of approximately $2.4 billion to be redeployed into capital investments [10][18]. - The company is focused on maintaining a strong balance sheet and has derisked over a billion dollars of equity needs through forward sales [21][22]. Q&A Session Summary Question: Balance sheet capacity from the Ohio transaction - Management indicated that the transaction would improve the FFO-to-debt ratio and allow for additional capital expenditures [29][31]. Question: Local feedback on the Ohio transaction - Management reported positive reception and support from local leadership regarding the transaction [32]. Question: Sales growth in Texas and driving sectors - Management noted strong throughput growth driven by diverse sectors, including data centers and energy refining [35][36]. Question: Data center activity in Indiana - Management expressed optimism about data center opportunities in Indiana, highlighting excess capacity and regulatory support [37][39]. Question: Accretive nature of the Ohio asset sale - Management confirmed that the sale would be beneficial for financing and earnings, with plans to redeploy funds into Texas projects [44][46]. Question: Seller's note and its impact - Management described the seller's note as a straightforward instrument that would support earnings in 2027 [48]. Question: AMI rollout timeline - Management indicated that AMI investments would begin in 2026, with a pilot program planned for that year [54][56]. Question: Mobile generation asset opportunities - Management discussed strong market conditions for medium-sized units and plans to remarket larger units in 2027 [58][60]. Question: Impact of HB 4384 legislation - Management confirmed that the benefits of the legislation are included in the current investment plan, with potential for further enhancements [62].