CNP-Triple bottom - good technical and fundamental investment
Based on technical and fundamental reasons this setup may begin a strong rally.
Weekly chart analisis:
Fundamental information from a public source:
****************************************************************
TheStreet Ratings rates CenterPoint Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
The revenue growth came in higher than the industry average of 1.5%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Net operating cash flow has increased to $412.00 million or 20.46% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.77%.
The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multi-Utilities industry and the overall market on the basis of return on equity, CENTERPOINT ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
CENTERPOINT ENERGY INC's earnings per share declined by 5.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year.
However, we anticipate this trend reversing over the coming year. During the past fiscal year, CENTERPOINT ENERGY INC reported lower earnings of $0.72 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.72).
Weekly chart analisis:
Fundamental information from a public source:
****************************************************************
TheStreet Ratings rates CenterPoint Energy as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, notable return on equity and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the ratings report include:
The revenue growth came in higher than the industry average of 1.5%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
Net operating cash flow has increased to $412.00 million or 20.46% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.77%.
The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Multi-Utilities industry and the overall market on the basis of return on equity, CENTERPOINT ENERGY INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
CENTERPOINT ENERGY INC's earnings per share declined by 5.7% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year.
However, we anticipate this trend reversing over the coming year. During the past fiscal year, CENTERPOINT ENERGY INC reported lower earnings of $0.72 versus $0.96 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus $0.72).