CenterPoint Energy, Inc. (CNP)

CNP stock forecast: buy or sell

CNP stock outlook

  • CenterPoint Energy Inc (Holding Co) closed today at $19.28 after just moving a 0.36%.
  • The stock is configuring an uptrend pattern since mid-March, when it bottomed at $11.48. Up to date, shares marked a 67.94% profit since the beginning of this rally
  • CenterPoint Energy, Inc. operates as a public utility holding company in the United States.
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Disclaimer:
The opinions given in this article are personal and not recommendations for you to buy or sell shares. The author of this text does not have an understanding of the individual circumstances 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 Comments are expressed for general educational reasons only

CNP stock chart overview

Should I buy CenterPoint Energy Inc (Holding Co) stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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?

Currently, CenterPoint Energy Inc (Holding Co) stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean CNP will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell CenterPoint Energy Inc (Holding Co) stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies give us the ability us to avoid rash decisions based on our sentiments or the buzz surrounding the market. Our trading system selects very simple setups to guide us on when is a good moment to sell our shares. Be aware that these setups should not be used for selling short CenterPoint Energy Inc (Holding Co) stock

As a golden rule, you must never hold an investment that leads to greater losses than those expected by the time of the buy. When to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell CenterPoint Energy Inc (Holding Co) stock?

Currently, CenterPoint Energy Inc (Holding Co) stock doesn't match any of our preferred sell setups, so if you own CenterPoint Energy Inc (Holding Co) stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell CenterPoint Energy Inc (Holding Co) stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 ratings were published for CenterPoint Energy Inc (Holding Co)

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CenterPoint Energy Inc (Holding Co) ratings

Brokerage firmRating
Jun 17th, 2020
Morgan Stanley
Jun 26th, 2020
Mizuho Strong buy

Technical analysis

CenterPoint Energy Inc (Holding Co) stock started an uptrend in mid-March, and gained a gorgeous 67.94%. The price action shows higher peaks and higher troughs, and along the way gave some buy points for those who wanted to enter. Latest low was in mid-June, when price bounced at $17.34. Like in all uptrends, price needs to rest and currently price is moving in a range between $19.95 and $17.34

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. Further about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Market investors use support and resistance levels as a way to identify price points in the stock price action that may work as barriers, containing the price of a stock to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it is likely to continue descending until approaching another support level. In contrast, resistances are where the price tends to find a curb as it moves up. Again, this means that the price is more liable to "rebound" at this level, and if it finally breaks this level, the price will rally more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $19.38 (0.52% above)
  • R2: $19.53 (1.3% above)
  • R3: $19.54 (1.35% above)
  • The current supports are:

  • S1: $19.20 (-0.41% below)
  • S2: $19.15 (-0.67% below)
  • S3: $19.09 (-0.99% below)
  • Bollinger bands

    So-called Bollinger bands are a well-established practice created by John Bollinger. Basically, the Bollinger Bands are bands that fluctuate around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on July 7, the price dropped by 1.78%

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price movements to detect when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI ranges between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    When the RSI stays for so long below 70 and above 30, without indication of overvaluation and undervaluation, the indicator becomes of little use, and we find ourselves in one of these situations.

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    Earnings and financials

    CNP hosted the earnings event and posted the 1st-quarter report in early May. CNP posted 1st-quarter earnings of $0.65 per share on revenue of $2.2 billion. The analysts estimate was $0.44 per share on revenue of $2.4 billion.

    This compares to earnings of $0.46 per share same quarter last year, so reported EPS means an improvement of 41.3%. Sales tanked a -38.53% on an annualized basis in the Q1, from $3.5B to $2.2B last quarter.

    CNP releases earnings report on early next August. Expected earnings of %s a share for this quarter is $0.20. If you hold or you are considering buying CNP shares, be aware that the earnings reporting day usually has a very high volatility, and price can jump up or down with unsually low liquidity and not honouring your buy/stop-loss orders. You can probably find more details about the earnings conference call and the earnings reports on the Investor Relations section of its website: http://www.centerpointenergy.com.

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