Centerpoint Energy Stock Buy Hold or Sell Recommendation
| CNP Stock | USD 31.73 0.37 1.18% |
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding CenterPoint Energy is 'Hold'. A buy or sell recommendation provided by Macroaxis is an automated directive regarding whether to purchase or sell CenterPoint Energy given historical horizon and risk tolerance towards CenterPoint Energy. When Macroaxis issues a 'buy' or 'sell' recommendation for CenterPoint Energy, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out CenterPoint Energy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. To learn how to invest in CenterPoint Stock, please use our How to Invest in CenterPoint Energy guide. Note, we conduct extensive research on individual companies such as CenterPoint and provide practical buy, sell, or hold advice based on investors' constraints. CenterPoint Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
CenterPoint |
Execute CenterPoint Energy Buy or Sell Advice
The CenterPoint recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on CenterPoint Energy. Macroaxis does not own or have any residual interests in CenterPoint Energy or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute CenterPoint Energy's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Solid | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
CenterPoint Energy Trading Alerts and Improvement Suggestions
| CenterPoint Energy has 18.62 B in debt with debt to equity (D/E) ratio of 1.56, which is OK given its current industry classification. CenterPoint Energy has a current ratio of 0.86, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for CenterPoint to invest in growth at high rates of return. | |
| Over 94.0% of CenterPoint Energy shares are held by institutions such as insurance companies | |
| Latest headline from bnnbloomberg.ca: AI Boom Turns Power Firms Into Biggest US Hybrid Capital Engine |
CenterPoint Energy Returns Distribution Density
The distribution of CenterPoint Energy's historical returns is an attempt to chart the uncertainty of CenterPoint Energy's future price movements. The chart of the probability distribution of CenterPoint Energy daily returns describes the distribution of returns around its average expected value. We use CenterPoint Energy price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of CenterPoint Energy returns is essential to provide solid investment advice for CenterPoint Energy.
| Mean Return | 0.31 | Value At Risk | -1.74 | Potential Upside | 2.72 | Standard Deviation | 1.23 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of CenterPoint Energy historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
CenterPoint Stock Institutional Investors
The CenterPoint Energy's institutional investors refer to entities that pool money to purchase CenterPoint Energy's securities or originate loans. These institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds.
| Shares | Deutsche Bank Ag | 2024-06-30 | 13.3 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 10.6 M | Mizuho Securities Usa Inc | 2024-09-30 | 10 M | Amvescap Plc. | 2024-06-30 | 8.7 M | Legal & General Group Plc | 2024-06-30 | 7.7 M | Pictet Asset Manangement Sa | 2024-06-30 | 7.6 M | Jennison Associates Llc | 2024-09-30 | 6.9 M | Alliancebernstein L.p. | 2024-06-30 | 6 M | Franklin Resources Inc | 2024-06-30 | 6 M | Capital Research & Mgmt Co - Division 3 | 2024-09-30 | 87.1 M | Vanguard Group Inc | 2024-09-30 | 79.3 M |
CenterPoint Energy Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | (52M) | 9M | (140M) | (259M) | 167M | 175.4M | |
| Change In Cash | (4.0B) | (104M) | 87M | (163M) | 18M | 18.9M | |
| Free Cash Flow | (868M) | (601M) | (3.1B) | (2.6B) | (524M) | (497.8M) | |
| Other Non Cash Items | (71M) | (58M) | (657M) | (357M) | 37M | 35.2M | |
| Dividends Paid | 695M | 529M | 492M | 489M | 535M | 409.2M | |
| Capital Expenditures | 2.5B | 2.6B | 3.2B | 4.4B | 4.4B | 4.6B | |
| Net Income | 791M | (773M) | 1.5B | 1.1B | 917M | 592.6M | |
| End Period Cash Flow | 271M | 167M | 254M | 91M | 109M | 103.6M | |
| Depreciation | 1.3B | 1.2B | 1.3B | 1.3B | 1.4B | 1.1B | |
| Investments | 42M | 80M | 1.3B | 702M | (4.6B) | (4.4B) | |
| Net Borrowings | 3.5B | (1.7B) | 2.5B | 636M | 731.4M | 484.5M | |
| Change To Netincome | 222M | 1.1B | (506M) | (239M) | (215.1M) | (204.3M) | |
| Change Receivables | 226M | 90M | (98M) | (461M) | (414.9M) | (394.2M) |
CenterPoint Energy Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to CenterPoint Energy or Multi-Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that CenterPoint Energy's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a CenterPoint stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.31 | |
β | Beta against Dow Jones | -0.09 | |
σ | Overall volatility | 1.19 | |
Ir | Information ratio | 0.16 |
CenterPoint Energy Volatility Alert
CenterPoint Energy has relatively low volatility with skewness of -0.15 and kurtosis of 1.17. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure CenterPoint Energy's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact CenterPoint Energy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.CenterPoint Energy Fundamentals Vs Peers
Comparing CenterPoint Energy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze CenterPoint Energy's direct or indirect competition across all of the common fundamentals between CenterPoint Energy and the related equities. This way, we can detect undervalued stocks with similar characteristics as CenterPoint Energy or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of CenterPoint Energy's fundamental indicators could also be used in its relative valuation, which is a method of valuing CenterPoint Energy by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare CenterPoint Energy to competition |
| Fundamentals | CenterPoint Energy | Peer Average |
| Return On Equity | 0.0957 | -0.31 |
| Return On Asset | 0.0275 | -0.14 |
| Profit Margin | 0.11 % | (1.27) % |
| Operating Margin | 0.23 % | (5.51) % |
| Current Valuation | 39.81 B | 16.62 B |
| Shares Outstanding | 651.73 M | 571.82 M |
| Shares Owned By Insiders | 0.33 % | 10.09 % |
| Shares Owned By Institutions | 94.15 % | 39.21 % |
| Number Of Shares Shorted | 18.19 M | 4.71 M |
| Price To Earning | 21.71 X | 28.72 X |
| Price To Book | 1.95 X | 9.51 X |
| Price To Sales | 2.42 X | 11.42 X |
| Revenue | 8.7 B | 9.43 B |
| Gross Profit | 3.57 B | 27.38 B |
| EBITDA | 3.19 B | 3.9 B |
| Net Income | 917 M | 570.98 M |
| Cash And Equivalents | 74 M | 2.7 B |
| Cash Per Share | 0.95 X | 5.01 X |
| Total Debt | 18.62 B | 5.32 B |
| Debt To Equity | 1.56 % | 48.70 % |
| Current Ratio | 0.88 X | 2.16 X |
| Book Value Per Share | 16.16 X | 1.93 K |
| Cash Flow From Operations | 3.88 B | 971.22 M |
| Short Ratio | 3.05 X | 4.00 X |
| Earnings Per Share | 1.50 X | 3.12 X |
| Price To Earnings To Growth | 1.85 X | 4.89 X |
| Target Price | 30.9 | |
| Number Of Employees | 8.83 K | 18.84 K |
| Beta | 0.92 | -0.15 |
| Market Capitalization | 20.68 B | 19.03 B |
| Total Asset | 39.72 B | 29.47 B |
| Retained Earnings | 1.09 B | 9.33 B |
| Working Capital | (837 M) | 1.48 B |
Note: Acquisition by Barry Smitherman of 5541 shares of CenterPoint Energy subject to Rule 16b-3 [view details]
CenterPoint Energy Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as CenterPoint . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About CenterPoint Energy Buy or Sell Advice
When is the right time to buy or sell CenterPoint Energy? Buying financial instruments such as CenterPoint Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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In addition to having CenterPoint Energy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for CenterPoint Stock Analysis
When running CenterPoint Energy's price analysis, check to measure CenterPoint Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CenterPoint Energy is operating at the current time. Most of CenterPoint Energy's value examination focuses on studying past and present price action to predict the probability of CenterPoint Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CenterPoint Energy's price. Additionally, you may evaluate how the addition of CenterPoint Energy to your portfolios can decrease your overall portfolio volatility.