CenterPoint Energy’s CNP model benefits when capital spending is paired with timely regulatory recovery, which helps convert rate base growth into earnings.
However, this Zacks Rank #3 (Hold) company faces risks related to persistent global supply-chain disruptions.
Factors Acting in Favor of CNP
In first-quarter 2026, management cited about 85% recovery of investments through interim capital trackers and provided examples across its footprint. For Houston Electric, the distribution capital recovery factor filing requested an approximately $108 million revenue requirement increase, while the transmission cost of service tracker requested an approximately $36 million increase, with new rates for the TCOS filing already in effect and DCRF rates targeted to be effective in June.
CenterPoint Energy continues to benefit from rising electricity consumption, with demand in its Houston Electric territory increasingly driven by large industrial and data center customers. In first-quarter 2026, the company disclosed 12.2 gigawatts (GW) of firmly committed industrial load at Houston Electric and expects eight GW of data center projects to be energized by 2029, with 3.5 GW already under construction.
CenterPoint Energy plans $6.8 billion of capital investment in 2026 and reaffirmed its $65.5 billion 2026-2035 capital plan. These investments will also help underground distribution lines and install self-healing automation devices that improve grid resilience and reliability, resulting in fewer and shorter power outages for customers and significant operational cost savings.
Challenges Faced by CNP
CenterPoint Energy’s multi-year capital plan depends on securing transformers, cable, storm hardening materials and renewable equipment at predictable costs. The company has described supply-chain disruptions, labor shortages and trade actions as factors that can affect availability and pricing of key components, including solar-related equipment. While interim rate mechanisms can support recovery of some investments, project delays can still slow the pace at which assets enter rate base and create timing differences in earnings recognition.
CNP’s Share Price Performance
In the past six months, shares of the company have risen 10.2% compared with the industry’s 3.1% growth.
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Stocks to Consider
Some better-ranked stocks from the same industry are Duke Energy DUK, Consolidated Edison ED and PG&E Corporation PCG, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for DUK’s 2026 earnings per share (EPS) implies an improvement of 6.3% year over year. The company delivered an average earnings surprise of 4.1% in the last four quarters.
ED’s long-term (three to five years) earnings growth rate is 6.47%. The company delivered an average earnings surprise of 2.2% in the last four quarters.
PCG’s long-term earnings growth rate is 15.89%. The Zacks Consensus Estimate for PCG’s 2026 EPS implies an improvement of 10% year over year.
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Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
Consolidated Edison Inc (ED): Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).