Valued at a market cap of $21 billion, CenterPoint Energy, Inc. (CNP) is a leading energy delivery company specializing in electric and natural gas services across the United States. Headquartered in Houston, Texas, CenterPoint Energy focuses on safe, reliable, and sustainable energy solutions, leveraging modern infrastructure and innovative technologies to enhance efficiency and support a cleaner energy future.
Shares of the energy delivery company have underperformed the broader market over the past 52 weeks. CNP stock has risen 17.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.8%. In 2025, CNP stock is up 2.2%, compared to SPX's 3.4% gain on a YTD basis.
Looking closer, CNP has also lagged behind the Utilities Select Sector SPDR Fund's (XLU) 29.6% return over the past 52 weeks and a 3.5% YTD gain.
CenterPoint's shares have lagged the broader market and peers due to regulatory challenges, rising costs, and weaker earnings growth. On Oct. 28, the stock gained 1.5% after its Q3 earnings report, despite adjusted EPS of $0.31 missing estimates of $0.36. Revenue fell 22.5% year over year to $1.86 billion, below the forecasted $1.88 billion. CenterPoint initiated its 2025 non-GAAP EPS guidance between $1.74 and $1.76 per share, reflecting 8% growth from the 2024 midpoint while reaffirming its 6% to 8% annual growth target through 2030.
For fiscal 2024, which ended in December, analysts expect CNP's EPS to grow 8% year-over-year to $1.62. The company's earnings surprise history is mixed. It beat or matched the consensus estimates in three of the last four quarters while missing on one other occasion.
Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy,” an upgrade from the “Hold” rating there months ago. That’s based on five “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and one “Strong Sell.”
On Jan. 27, Barclays (BCS) raised CNP's price target to $30 from $29 but maintained an “Underweight” rating, citing steady sector growth and reasonable valuations.
CNP is currently trading slightly below its mean price target of $32.97. However, the Street-high target of $37, indicating a modest 14.1% upside potential.
