Here's Why CNP Stock Deserves a Place in Your Portfolio Right Now

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]