CenterPoint Energy(CNP) ZACKS·2025-04-17 15:00Core Viewpoint - CenterPoint Energy Inc. (CNP) presents a strong investment opportunity in the Zacks Utility Electric Power industry due to rising earnings estimates, strategic investments, robust return on equity (ROE), improved solvency, and a solid dividend history [1] Growth Projections & Surprise History - The Zacks Consensus Estimate for CNP's earnings per share (EPS) for 2025 and 2026 has increased by 0.6% and 0.5%, respectively, over the past 90 days [2] - The estimated revenue for CNP in 2025 is 9.36 billion, indicating a year-over-year increase of 4.7% [2] Earnings Growth Rate - CNP's long-term earnings growth rate is projected at 7.5%, and the company has consistently surpassed expectations in the last four reported quarters, achieving an average earnings surprise of 0.76% [3] Return on Equity - CNP's return on equity (ROE) stands at 10.02%, outperforming the industry average of 9.77%, indicating more effective utilization of funds compared to peers [4] Solvency & Liquidity - The times interest earned (TIE) ratio for CNP at the end of Q4 2024 was 2.4, suggesting the company can comfortably meet its interest payment obligations [5] - CNP's current ratio at the end of Q4 2024 was 1.08, exceeding the industry average of 0.79, indicating a strong ability to meet short-term liabilities [6] Dividend History - CNP has a consistent dividend payment history, currently offering a quarterly dividend of 22 cents per share, leading to an annualized dividend of 88 cents and a dividend yield of 2.39%, which is higher than the S&P 500 Composite average of 1.37% [7] Systematic Investments - The company plans to invest 47.5 billion in capital expenditures over the next 10 years, with $4.8 billion earmarked for 2025, aimed at enhancing customer reliability and providing safe, resilient energy [8] Stock Price Performance - Over the past three months, CNP shares have increased by 13%, significantly outperforming the industry's growth of 2.8% [9]