Here's Why You Must Add CenterPoint Stock to Your Portfolio Now

CenterPoint Energy Inc. CNP, with its rising earnings estimates, strategic investments, robust ROE, better solvency and strong dividend history, offers a great investment opportunity in the Zacks Utility Electric Power industry.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.CNP’s Growth Projections & Surprise History The Zacks Consensus Estimate for CenterPoint Energy’s 2025 earnings per share (EPS) has increased 0.6% to $1.75 per share in the past 60 days. The Zacks Consensus Estimate for CNP’s revenues for 2025 stands at $8.80 billion, which indicates growth of 1.8% from the 2024 reported figure.The company’s long-term (three to five years) earnings growth rate is pegged at 7.1%. It delivered an average earnings surprise of 0.76% in the last four quarters.CNP’s Return on Equity Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. Currently, CNP’s ROE is 10.02% compared with the industry’s 9.89%. This indicates that the company has been utilizing its funds more constructively than its peers in the industry.CNP’s Solvency & Liquidity CenterPoint Energy’s times interest earned ratio (TIE) at the end of the fourth quarter of 2024 was 2.4. The TIE ratio of more than 1 indicates that the company will be able to meet its interest payment obligations in the near term without any problems.CNP’s current ratio at the end of the fourth quarter of 2024 was 1.08, higher than the industry’s average of 0.73. The ratio, being greater than one, indicates the company’s ability to meet its future short-term liabilities without difficulties.Dividend History of CNP CenterPoint Energy has been increasing shareholder value by steadily paying dividends. Currently, the company’s quarterly dividend is 22 cents per share, resulting in an annualized dividend of 88 cents. The company’s current dividend yield is 2.55%, better than the Zacks S&P 500 Composite's average of 1.30%.CNP’s Systematic Investments CenterPoint Energy consistently invests in upgrading and maintaining its infrastructure while expanding operations. The company's capital expenditure plan over the next 10 years is $47 billion to $47.5 billion, with an investment aim of $4.8 billion in 2025. Such investments should improve the company’s customer reliability and provide safe, resilient energy.CNP Stock Price Performance In the past three months, CNP shares have risen 8.1% compared with the industry’s growth of 1.9%.Image Source: Zacks Investment ResearchOther Stocks to Consider A few other top-ranked stocks from the same industry are CMS Energy Corporation CMS, NiSource Inc. NI and Ameren Corporation AEE, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CMS’ long-term earnings growth rate is 7.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.60, which indicates a year-over-year improvement of 7.8%.  NI’s long-term earnings growth rate is 8.2%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.91, which suggests a year-over-year rise of 9.1%.  AEE’s long-term earnings growth rate is 6.7%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.94, which calls for a year-over-year improvement of 6.7%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ameren Corporation (AEE): Free Stock Analysis Report NiSource, Inc (NI): Free Stock Analysis Report CMS Energy Corporation (CMS): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks