CenterPoint Energy Eyes Growth via Renewables & Capital Deployment

CenterPoint Energy CNP is investing heavily to expand its operations to meet the rising electricity demand, and boost customer reliability with safe, clean and reliable energy. The company is also broadening its renewable energy portfolio.However, this Zacks Rank #3 (Hold) company is exposed to risks like global supply-chain disruptions and a weak solvency position.CNP Stock: Key Growth DriversCenterPoint Energy has been investing heavily in expanding its operations and modernizing its aging infrastructure for electric and natural gas transmission and distribution to fulfill the rising demand for electricity. The company invested $2.17 billion in the first half of 2025 and plans to spend $4.8 billion for the full year. Additionally, it raised its 10-year capital plan from $48.5 billion to $53 billion through 2030.As of May 22, 2025, CenterPoint Energy had installed 26,470 storm-resilient poles and 5,159 self-healing automation devices, cleaned 6,018 miles of hazardous vegetation near power lines and undergrounded 417 miles of lines. These efforts are expected to enhance customer reliability and ensure safe, resilient energy.CenterPoint Energy is broadening its renewable energy portfolio to take advantage of the utility-scale renewable energy market's economic, environmental, social and governance incentives.As part of its 10-year capital plan, the company intends to invest more than $3 billion in renewable generation and electric vehicle expansion.CNP aims to generate roughly 1,000 megawatts (MWs) of power from wind and solar energy sources by 2026. It also intends to add 200 MW of wind and 200 MW of solar resources by 2030, with the possibility for an additional 400 MW of wind resources by 2032.Challenges That May Impact CNP StockThe global supply chain has faced major disruptions in recent times due to factors such as labor shortages, resource constraints, extended lead times, delivery delays, inflation, extreme weather, and interruptions in both domestic and international shipping. These disruptions are expected to continue and could intensify following the recent import tariff imposed by the U.S. government. CenterPoint Energy may encounter difficulties in securing essential resources such as transformers, wires, cables, meters, poles, solar panels and other critical components needed to sustain its operations in the future.As of June 30, 2025, CenterPoint Energy reported $20.56 billion in long-term debt and $1.05 billion in current debt compared with just $0.78 billion in cash and cash equivalents (including investments in securities). Both current and long-term debt exceeded the company’s cash balance, underscoring a weak solvency position for the stock.CNP Stock Outperforms IndustryIn the past year, CNP shares have climbed 35.1% compared with the industry’s growth of 5.3%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks from the same industry are IDACORP, Inc. IDA, NiSource Inc. NI and Centuri Holdings, Inc. CTRI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.IDA’s long-term (three to five years) earnings growth rate is 8.2%. The Zacks Consensus Estimate for its 2025 earnings per share (EPS) stands at $5.83, which calls for a year-over-year jump of 6%.NI’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for 2025 EPS is pegged at $1.88, which indicates a year-over-year improvement of 7.4%.CTRI’s long-term earnings growth rate is 41.2%. The Zacks Consensus Estimate for its 2025 EPS stands at 63 cents, which implies a year-over-year rise of 96.9%.Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>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 NiSource, Inc (NI): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report IDACORP, Inc. (IDA): Free Stock Analysis Report Centuri Holdings, Inc. (CTRI): 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