CenterPoint Energy, Inc. (CNP), headquartered in Houston, Texas, operates as a public utility holding company in the United States. Founded in 1866 and with a market cap of $23.3 billion, the company operates in Electric and Natural Gas segments.
Companies valued at more than $10 billion or more are generally considered “large-cap stocks,” and CNP fits this criterion perfectly. As a leading electricity and natural gas supplier, the company benefits from more than 2.8 million customers, 352 substations, and approximately 219 miles of intrastate pipeline in Louisiana and Texas.
Despite its strengths, CNP has faced pressure and has fallen 1.3% from its 52-week high of $36.19, recorded on Mar. 21. CNP stock has surged 10.3% over the past three months, outperforming the broader S&P 500 Index ($SPX), which declined 4.5% during the same period.
Over the past six months, shares of CNP surged 24.6%, compared to $SPX’s marginal rise. Moreover, CNP has surged 28.4% over the past 52 weeks, outperforming SPX's 10.2% return.
CNP has traded above its 200-day moving average since the end of September and above its 50-day moving average since mid-January, indicating an uptrend.
CNP shares declined 1.1% following its Q4 earnings release on Feb. 20. The company reported an income available to common shareholders of $248 million, driven by growth and regulatory recovery and lower O&M. The company’s EPS amounted to $0.40, meeting the Wall Street estimates successfully. Moreover, it forecasts a nearly 50% increased demand for electric load growth at Houston Electric service territory by 2031.
Its rival, American Electric Power Company, Inc. (AEP), has also shown robust prospects, with its shares surging 2.7% over the past six months and 25.6% over the past 52 weeks.
Analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 17 analysts in coverage. The stock is currently trading above its mean price target of $34.17.
