Yahoo Finance Here's Why CenterPoint Energy (CNP) is a Strong Value Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
CenterPoint Energy (CNP)
Incorporated in 2002, Houston, TX-based CenterPoint Energy Inc. is a domestic energy delivery company that provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. The company maintains the wires, poles and electric infrastructure serving more than 2.5 million metered customers in the greater Houston area and in southwestern Indiana. CenterPoint Energy also owns and operates nearly 1,300 megawatts of electric generation capacity in Indiana. In December 2021, CenterPoint decided to reduce the midstream exposure following the completion of Enable Midstream Partners, LP’s merger with Energy Transfer. CenterPoint’s 53.7% of Enable common units converted into 201 million ET common units. In February and March 2022, CenterPoint Energy completed the execution of its previously announced plan to exit the midstream sector by selling the remaining Energy Transfer Common Units and Energy Transfer Series G Preferred Units.
CNP is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 20X for the current fiscal year compared to the Utility - Electric Power industry's P/E of 17.4X. Additionally, CNP has a PEG Ratio of 2.7 and a Price/Cash Flow ratio of 8.5X. Value investors should also note CNP's Price/Sales ratio of 2X.
Many value investors pay close attention to a company's earnings as well. For CNP, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $1.49 per share for 2023. Per share CNP boasts an average earnings surprise of 3.7%.
Investors should take the time to consider CNP for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
