CenterPoint (CNP) Upgraded to Buy: Here's Why

Core Insights - CenterPoint Energy (CNP) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3][10] Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6] - Rising earnings estimates for CenterPoint suggest an improvement in its underlying business, likely leading to increased stock prices [5][8] Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9] - CenterPoint's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns [10] Earnings Estimate Details - CenterPoint is projected to earn $1.77 per share for the fiscal year ending December 2025, with a 0% year-over-year change, but the Zacks Consensus Estimate has increased by 0.8% over the past three months [8]