CenterPoint stock: buy or sell
Jan 18th, 2021
CenterPoint stock brief
- Counting last Friday, it's been 3 consecutive sessions in positive for CenterPoint Energy. Price closed last Friday at $21.46 after exploding a 2.93%.
- The stock is configuring an uptrend pattern since September 2020, when it bottomed at $18.49. Up to date, the uptrend made a 16.06% gain since the beginning of this rally
- The Goldman Sachs Group posted a strong buy rating for CenterPoint Energy last Thursday
- CenterPoint Energy, Inc. operates as a public utility holding company in the United States.
Should I buy CenterPoint Energy stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $CNP stock a buy?
In the current situation of CenterPoint Energy there is just one buy setup eligible:
Uptrend buy setup
CenterPoint Energy stock continues to trend higher since in September 2020 and marked a gorgeous 16.06% gain. Price marked a pull back in this uptrend at $20.52 last Tuesday, and since then it bounced off a 4.58%. Breaking out over $25.24 - it's last top - will be a good entry point if CenterPoint Energy resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $22.72
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$25.24||$22.72||10.00%|
Should I sell CenterPoint Energy stock?
When you own stock shares with some profit, it's really hard to decide the correct moment to sell and get your benefits. Trading strategies help us to avoid rash decisions based on our personal emotions or the buzz surrounding the market. When selling, as well as buying, detailed setups are very easy to follow but are only applicable for selling shares in your porfolio, not for selling short CenterPoint Energy stock
A guiding principle is that you should never keep an operation that generates higher than expected losses by the time of the buy. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)
Is it time to sell CenterPoint Energy stock?
Currently, CenterPoint Energy stock doesn't match any of our preferred sell setups, so if you own CenterPoint Energy stock and your operation is in profit probably is not time to sell now
CenterPoint Energy ratings
In the last month, 2 ratings were published for CenterPoint Energy
|Jan 6th, 2021|
|Wells Fargo & Company|
|Jan 14th, 2021|
|The Goldman Sachs Group|| Neutral → |
CenterPoint Energy stock analysis
CenterPoint Energy stock started an uptrend in September 2020, and grew an amazing 16.06%. The chart shows rising highs and lows, and along the way gave very few entry points for those who wanted to trade in. Latest pullback was last Tuesday, when price bounced at $20.52. Currently, the price trades in a consolidation between its last top ($25.24) and its last bottom ($20.52)
Supports and resistances
The current resistances are:
The current support levels are:
Since the price broke down the lower band on January 8, the price bounced off by 4.58%. The price is moving very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell point, as price can move in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last November after just crossing to the overbough zone for 1 day (weak signal). The RSI value last Friday was 49.33. Since that level was lost, CenterPoint Energy stock sank a 14.23%
CenterPoint Energy stock price history
CenterPoint Energy started trading on Jan 2nd, 1970 at $0.33 per share1. Since then, CNP stock has risen by 6,403.03%, with an average of 125.55% per year. An investment of thousand dollars at that time would worth $65,030.30 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for CenterPoint Energy stock
Nobody knows how much a stock will be priced tomorrow. Banks and financial organisations post their analysis forecasting how a particular stock will performance in the future.
Along with buy or sell recommendations, financial institutions release their price forecasts based on the stock price action and the company fundamental data. Most of these predictions follow the publication of new financial information by the company, and many times. Again, these forecasts are not direct recommendations for individual investors and should not be trusted blindly.
There is just one price target available for CenterPoint Energy that predicts a price of $24.00.
|Brokerage firm||Price target|
|Jan 6th, 2021|
|Wells Fargo & Company||$25.00 → $24.00|
|Jan 14th, 2021|
|The Goldman Sachs Group||Not available|
Earnings and financials
CenterPoint Energy ($CNP) hosted the earnings call and presented the report last November. CenterPoint topped Wall St estimates and reported of $0.34, that is a 13.33% better than expected versus the previous forecasts of $0.30. On the opposite side, reported revenues were $1.6 billion compared to estimates of $1.7 billion.Compared to the same quarter one year ago, EPS was $0.53, so current EPS is a reduction of -35.85%. Turnover tanked a -40.85% on an annualized basis in the , from $27.4B to $16.2B last quarter.
CenterPoint ($CNP) is releasing financial report late next February. Wall Street forecasts of $0.19, compared to Q3 that was $0.34.
CenterPoint Energy performance
|CenterPoint Energy ($CNP)||-3.60%||3.10%||9.50%|
Please read:The thoughts contained in this post are personal and not recommendations for you to buy or sell shares. The author of this text does not know the specific scenarios of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for education purposes only
|Friday, January 15th, 2021|
|Day range||$21 - $21.52|
|Average true range||$0.59|
|50d mov avg||$22.43|
|100d mov avg||$21.28|
|200d mov avg||$19.60|
|Earnings date||February 25th, 2021|