Should I Buy CNP? CNP 2026 Analysis

Should You Buy CenterPoint Energy Inc (CNP) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

39.590

1 Day change

-0.50%

52 Week Range

40.500

Analysis Updated At

2026/01/29

CenterPoint Energy Inc (CNP) is not a strong buy for a beginner, long-term investor at this moment. While the technical indicators show some bullish signals, the company's recent financial performance is extremely weak, with significant declines in revenue, net income, EPS, and gross margin. Additionally, the stock's short-term trend suggests potential downside, and there are no strong positive catalysts or trading signals to justify immediate investment.

Technical Analysis

The MACD histogram is positive at 0.108, indicating a bullish trend, but it is contracting. RSI is neutral at 59.743, showing no clear overbought or oversold condition. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its pivot point of 39.269. However, the stock has a 50% chance to decline in the short term based on candlestick pattern analysis.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

The company successfully restored power to nearly 30,000 customers during a winter storm, showcasing operational efficiency. Analysts from Wells Fargo and KeyBanc have provided positive ratings with higher price targets, citing premium growth characteristics and a de-risked balance sheet.

Neutral/Negative Catalysts

The company's financial performance in Q3 2025 was extremely poor, with a 39.01% YoY revenue drop and 100% declines in net income, EPS, and gross margin. Additionally, the stock's short-term trend suggests potential downside, and there are no recent significant insider or hedge fund trading activities.

Financial Performance

In Q3 2025, revenue dropped by 39.01% YoY to $1.132 billion. Net income, EPS, and gross margin all fell to zero, representing a 100% YoY decline. This indicates severe financial weakness.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are mixed on the stock. Wells Fargo raised its price target to $47, citing premium growth and a de-risked balance sheet, while Morgan Stanley kept an Equal Weight rating with a lower price target of $37. UBS and JPMorgan also lowered their price targets recently. Overall, the sentiment is cautious with some optimism for long-term growth.

10 Analyst Rating

Wall Street analysts forecast CNP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CNP is 41.8 USD with a low forecast of 36 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

6 Hold

0 Sell

Moderate Buy

Current: 39.790

Low

Averages

41.8

High

Current: 39.790

Low

Averages

41.8

High

Morgan Stanley

Equal Weight

maintain

$36 -> $37

AI Analysis

2026-01-21

Reason

Morgan Stanley

Price Target

$36 -> $37

AI Analysis

2026-01-21

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on CenterPoint Energy to $37 from $36 and keeps an Equal Weight rating on the shares. The firm is updating its Regulated & Diversified Utilities / IPPs in North America under its coverage, noting utilities underperformed the S&P's return in December, the analyst tells investors.

Wells Fargo

Shahriar Pourreza

Overweight

maintain

$44 -> $47

2026-01-20

Reason

Wells Fargo

Shahriar Pourreza

Price Target

$44 -> $47

2026-01-20

maintain

Overweight

Reason

Wells Fargo analyst Shahriar Pourreza raised the firm's price target on CenterPoint Energy to $47 from $44 and keeps an Overweight rating on the shares. The firm thinks the stock's 15% premium vs. sector average on 2028 is defensible, given the high-end cadence into 2026-2028, the de-risked balance sheet hovering about 14% FFO/Debt, and tangible optionality from AMI/resiliency layered without front-loading equity.

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CNP Should I Buy

CNP Should I Buy

Should You Buy CenterPoint Energy Inc (CNP) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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