CenterPoint Energy (CNP) is a Great Momentum Stock: Should You Buy?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher, capitalizing on established price movements [1] Company Overview: CenterPoint Energy (CNP) - CNP currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [3] Performance Metrics - Over the past week, CNP shares increased by 0.98%, outperforming the Zacks Utility - Electric Power industry, which rose by 0.22% [5] - In the last month, CNP's price change was 4.76%, while the industry saw a performance of 6.11% [5] - For longer-term performance, CNP shares rose by 7.38% over the past quarter and 32.38% over the last year, compared to the S&P 500's increases of 7.25% and 16.06%, respectively [6] Trading Volume - CNP's average 20-day trading volume is 5,839,718 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for CNP have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $1.75 to $1.76 [9] - For the next fiscal year, four estimates have also moved higher without any downward revisions [9] Conclusion - Given the strong performance metrics and positive earnings outlook, CNP is positioned as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]