CenterPoint Energy, Inc.: Monthly Stock Analysis - October 2025

Publication Date: October 13, 2025

Company Overview

CenterPoint Energy, Inc. (NYSE: CNP), headquartered in Houston, Texas, operates within the regulated electric utilities industry in the United States. As a public utility holding company, it manages two primary segments: Electric and Natural Gas. The Electric segment is significantly focused on transmission and distribution services and electric generation assets, primarily servicing Indiana. Meanwhile, the Natural Gas segment involves intrastate natural gas sales and transportation to residential, commercial, and industrial customers across various states, including Indiana, Louisiana, Minnesota, Mississippi, Ohio, and Texas.

As of December 31, 2024, CenterPoint Energy served approximately 2.8 million metered customers, supported by an extensive network of substations and pipelines. With a historical foundation dating back to 1866, the company is well positioned in a sector characterized by stability and consistent demand.

Business Model and Industry Position

The utility sector is typically regarded as a defensive sector given the constant demand for energy. CenterPoint Energy's operational focus on both electric and natural gas services positions it favorably to withstand industry fluctuations. Its demonstrated financial performance, with a total revenue of approximately $8.98 billion, illustrates the stability that the utilities sector can offer. Overall, the investment outlook for CenterPoint Energy appears favorable, with analysts expressing confidence in its growth potential despite ongoing regulatory challenges.

52-Week Price Performance Analysis

52-Week Price Performance Chart

Examining the 52-week stock price chart for CenterPoint Energy, we see a substantial upward trend from the past year. The stock began the year around $29 and has ascended to its current price of $39.545, reflecting an increase of over 35%. This bullish momentum is characterized by higher highs and higher lows, indicating strong investor confidence.

• Key Support Levels: The major support level is around $30, where price consolidation occurred in the early months of the year prior to breaking out.
• Resistance Levels: A notable resistance level appears near the $39 mark, where the stock has recently stabilized.
• Momentum Indicators: The fifty-day moving average currently stands at approximately $38.34, with the stock trading above this level, indicating positive momentum.

Recent price action displays bullish characteristics, particularly with the stock having recently surged past the previous resistance of $38, which bodes well for continued investor confidence. Monitoring sustained movements above $39 will be crucial to confirm breakout potential and subsequent upward actions.

Financial Performance and Metrics

CenterPoint Energy's financial health is substantiated by its strong revenue stream and operational performance:

• Total Revenue: Approximately $8.98 billion for the fiscal year.
• EBITDA: Reported at roughly $3.30 billion, suggesting sound operating performance.
• Earnings Per Share (EPS) Growth: The company recently raised its EPS guidance for 2025 to $1.75 - $1.77, reflecting a robust growth trajectory of around 9% at the midpoint.

Valuation Metrics

The target high price for CenterPoint Energy is set at $45.00, showcasing a promising upside for investors entering the market at current levels. Furthermore, the expected mean price is around $41.14, indicating potential appreciation in value. This forecast aligns with the positive operational metrics and reflects the company's resilient business model in the regulated electric space.

• Shares Outstanding: CenterPoint Energy has 652,864,878 shares outstanding, with a short interest of approximately 6.28% of the total float, which includes 649,404,694 shares available for trading.

Financial Risks and Concerns

Despite the strong fundamentals, investors should remain aware of the regulatory landscape that can impose challenges on operational flexibility and overall profitability. Additionally, market dynamics centered around energy demand could present volatility.

Recent News and Developments

Recent announcements from CenterPoint Energy indicate a strategic uplift with a $65 billion capital investment plan slated for the period between 2026 and 2035. This ambitious initiative is aimed at meeting the rising power demand, significantly driven by data centers and industrial electrification, representing a 40% increase in previously scheduled investments.

Key recent developments include:

• Increased EPS Guidance: For 2025, the company expects non-GAAP EPS to range between $1.75 and $1.77.
• Quarterly Dividend Declaration: On September 25, 2025, the Board of Directors declared a quarterly cash dividend of $0.2200 per share, payable on December 11, 2025, to shareholders of record as of November 20, 2025.

These strategic endeavors coupled with financial forecasts indicate CenterPoint Energy's commitment to fostering growth while delivering value to its investors.

Market Sentiment and Analyst Recommendations

Market sentiment surrounding CenterPoint Energy is characterized by a consensus "buy" recommendation from analysts. With the recommendation mean score at 2.5, the analysts present a moderately optimistic outlook, supportive of potential value appreciation within the projected target range.

Price Targets: - Target High Price: $45.00 - Target Mean Price: Approximately $41.14 - Target Low Price: $35.00

In recent updates, while some firms, like Evercore ISI, have raised their price targets to $41, indicating an "Outperform" rating, others, such as Wall Street Zen, have downgraded the stock from "Hold" to "Sell." This mixed sentiment suggests that while there are positive arguments for growth, caution is also warranted.

Summary

In conclusion, CenterPoint Energy presents a favorable investment opportunity within the regulated electric utilities sector, showing significant revenue stability and growth potential. The bullish price performance over the past year points to resilience, particularly in light of strategic investments aiming to enhance service capacity and meet rising demand.

However, as with any investment in the utilities sector, investors must weigh the potential rewards against regulatory and market risks, while also keeping abreast of analyst sentiments and market conditions that may influence future performance. As it stands, CenterPoint Energy remains a strong candidate for investors seeking both income through dividends and growth through capital appreciation.