Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
CenterPoint Energy (CNP)
Incorporated in 2002, Houston, TX-based CenterPoint Energy Inc. is a domestic energy delivery company that provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. The company maintains the wires, poles and electric infrastructure serving more than 2.5 million metered customers in the greater Houston area and in southwestern Indiana. CenterPoint Energy also owns and operates nearly 1,300 megawatts of electric generation capacity in Indiana. In December 2021, CenterPoint decided to reduce the midstream exposure following the completion of Enable Midstream Partners, LP’s merger with Energy Transfer. CenterPoint’s 53.7% of Enable common units converted into 201 million ET common units. In February and March 2022, CenterPoint Energy completed the execution of its previously announced plan to exit the midstream sector by selling the remaining Energy Transfer Common Units and Energy Transfer Series G Preferred Units.
CNP boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of CenterPoint Energy are trading at a forward earnings multiple of 19X, as well as a PEG Ratio of 2.5, a Price/Cash Flow ratio of 8.1X, and a Price/Sales ratio of 1.9X.
A company's earnings performance is important for value investors as well. For fiscal 2023, one analyst revised their earnings estimate higher in the last 60 days for CNP, while the Zacks Consensus Estimate has increased $0.00 to $1.49 per share. CNP also holds an average earnings surprise of 0.1%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CNP to their portfolios.
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CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
