Here's Why CNP Stock Deserves a Place in Your Portfolio Right Now

CenterPoint Energy CNP benefits from rising electricity consumption, driven by the rapid electrification of transportation and buildings, along with increasing investments in renewable energy. Given its strong growth and better debt management, the stock makes a strong case for investment in the Zacks Utility-Electric Power industry space.Let us focus on the reasons that make this Zacks Rank #2 (Buy) stock a strong investment pick at the moment.CNP’s Growth OutlookThe Zacks Consensus Estimate for 2025 earnings per share (EPS) implies an increase of 8.64% year over year to $1.76. The Zacks Consensus Estimate for 2025 revenues is pegged at $9.18 billion, which indicates year-over-year growth of 6.16%.CenterPoint Energy projects long-term EPS to improve in the range of 7-9% annually. Our projection for CNP’s long-term (three to five years) earnings growth rate is 7.93%.CNP’s Return to ShareholdersCNP 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. CNP’s current dividend yield is 2.19%, better than the Zacks S&P 500 composite's average of 1.10%.CNP’s Investment FocusCenterPoint Energy focuses on customer-driven capital investment. It laid a foundational $65 billion capital plan for 10 years, with $10 billion in identified incremental opportunities. The company expects rate base growth to exceed 11% annually through 2030. The company plans to recover approximately 85% of its capital investment through forward test year rate cases and interim trackers by 2030.CNP’S Return on EquityReturn on Equity (ROE) indicates how efficiently the company is utilizing shareholders’ funds to generate returns. At present, CNP’s ROE is 10.25%, higher than the industry average of 9.95%.CNP’s Solvency RatioCenterPoint Energy’s times interest earned ratio (TIE) at the end of the third quarter of 2025 was 2.3. The TIE ratio is a key solvency metric that indicates how effectively a company can meet its long-term debt obligations, showing the extent to which its operating earnings are sufficient to cover interest payments.CNP’s Stock Price PerformanceOver the past year, CNP’s shares have risen 28% compared with the industry’s growth of 20.6%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are FirstEnergy FE, Ameren AEE and Alliant Energy LNT, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.FE’s long-term earnings growth rate is 6.46%. The Zacks Consensus Estimate for 2025 EPS is pegged at $2.54, which implies declined year-over-year growth of 3.42%.AEE’s long-term earnings growth rate is 8.01%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.99, which implies a year-over-year rise of 7.78%.LNT’s long-term earnings growth rate is 6.57%. The Zacks Consensus Estimate for 2025 EPS is pegged at $3.21, which suggests year-over-year growth of 5.59%. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>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 FirstEnergy Corporation (FE): Free Stock Analysis Report CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report Alliant Energy Corporation (LNT): 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