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Reasons to Include CenterPoint Stock in Your Portfolio Right Now
ZACKS· 2025-06-20 14:16
Core Viewpoint - CenterPoint Energy Inc. (CNP) is positioned as a strong investment option in the Zacks Utility Electric Power industry due to its consistent infrastructure investments and expanding operations [1] Growth Projection - The Zacks Consensus Estimate for CNP's 2026 earnings per share (EPS) has increased by 0.5% to $1.88 over the past 60 days [2] - The revenue estimate for CNP in 2025 is projected at $9.05 billion, reflecting a growth of 4.7% from the reported figure in 2024 [2] - The company's long-term earnings growth rate is estimated at 7.8% over the next three to five years [2] Dividend History - CNP has been consistently increasing 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 2.48%, outperforming the Zacks S&P 500 Composite average of 1.24% [3] - In the first quarter of 2025, CNP paid $143 million in dividends, up from $126 million in the same period the previous year [3] Solvency - CNP's times interest earned (TIE) ratio at the end of the first quarter of 2025 was 2.3, indicating the company can comfortably meet its interest payment obligations in the near term [4] Strategic Investment Framework - CNP plans to invest $48.5 billion in capital expenditures over the next 10 years, with a target of $4.8 billion in 2025 [5] - These investments are aimed at enhancing customer dependability and providing safe, resilient energy [5] Renewable Energy and EV Expansion - As part of its 10-year capital expenditure strategy, CNP intends to invest over $3 billion in renewable energy generation and electric vehicle (EV) expansion, targeting around 1,000 megawatts of power from wind and solar by 2026 [6][8] - The company is also focusing on developing a smarter, cleaner ecosystem for EV drivers and fleet operators, including investments in off-road electrification [7] Stock Performance - CNP stock has increased by 10.8% over the past six months, outperforming the industry's growth of 5.7% [10]
Reasons to Include CenterPoint Stock in Your Portfolio Right Away
ZACKS· 2025-05-19 13:40
Core Viewpoint - CenterPoint Energy Inc. (CNP) is positioned as a strong investment option in the Zacks Utility Electric Power industry due to its consistent infrastructure investments and expanding operations [1] Growth Forecast - The Zacks Consensus Estimate for CNP's 2025 earnings per share (EPS) is $1.75, reflecting an 8% year-over-year growth [2] - For 2026, the EPS estimate is $1.88, indicating a year-over-year growth of 7.2% [2] - CNP's revenue for 2025 is estimated at $8.99 billion, representing a 4.1% increase from 2024 [3] - The 2026 revenue estimate is $9.36 billion, suggesting a 4% year-over-year increase [3] - The company's long-term earnings growth rate is projected at 7.8% over the next three to five years [3] Solvency - CenterPoint Energy's times interest earned (TIE) ratio was 2.3 at the end of Q1 2025, indicating the company can comfortably meet its interest payment obligations [4] Return to Shareholders - CNP has consistently increased shareholder value through dividends, currently paying a quarterly dividend of 22 cents per share, equating to an annualized dividend of 88 cents [5] - The current dividend yield stands at 2.35%, outperforming the Zacks S&P 500 Composite average of 1.24% [5] - In Q1 2025, the company paid $143 million in dividends, up from $126 million in the previous year [5] Structured Investment Approach - CenterPoint Energy plans to invest $48.5 billion over the next 10 years, with $4.8 billion allocated for 2025 to enhance customer reliability and energy safety [6] - The company intends to invest over $3 billion in renewable energy generation and electric vehicle (EV) expansion as part of its 10-year capital expenditure strategy [7] - By 2026, CNP anticipates generating approximately 1,000 megawatts of power from wind and solar sources [7] Initiatives for the EV Market - CNP is making significant investments to create a smarter and cleaner ecosystem for EV drivers and fleet operators, focusing on off-road electrification [8] - The corporate fleet aims to electrify all cars and SUVs by 2030 as part of its net-zero emission plan, strengthening its position in the EV market [9] Stock Performance - Over the past three months, CNP shares have increased by 11.2%, outperforming the industry's growth of 4.8% [11]