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

40.050

1 Day change

-0.42%

52 Week Range

40.800

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient entry: price is extended into/above near-term resistance (~40.50) with RSI near overbought.
Trend is bullish overall, but risk/reward at this exact level is unfavorable ahead of earnings (2026-02-19 pre-market).
Options positioning is bullish (low put/call ratios), yet implied volatility is elevated (IV percentile ~88), implying pricier optionality and higher event risk.
Best stance now: HOLD / avoid chasing; a better buy would be on a pullback toward ~39.4 (pivot) or after earnings clarity.

Technical Analysis

Trend/structure: Bullish stack of moving averages (SMA_5 > SMA_20 > SMA_200) indicates a sustained uptrend.
Momentum: MACD histogram positive and expanding (0.0852) = bullish momentum building.
RSI: RSI_6 at 68.77 = close to overbought; upside may be more limited near-term.
Levels: Pivot 39.374. Support S1 38.677. Resistance R2 40.502; current price 40.54 is slightly above R2, increasing odds of a near-term pause/pullback.
Pattern-based forward view (model): ~50% chance of slight dip next day (-0.13%) and next week (-0.78%), but positive bias over next month (+4.75%).

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Sentiment: Put/call ratios are low (OI PCR 0.54; Volume PCR 0.41) suggesting bullish positioning.
Volatility: 30D IV 25.91 vs historical vol 12.08 = options implying elevated movement; IV percentile 88.4 = high relative to its own history.
Activity: Today’s options volume (222) is light vs recent averages (10D avg ~1931; 5D avg ~2761), so bullish ratios may reflect positioning more than strong fresh flow.
Takeaway: Options lean bullish, but high IV and upcoming earnings raise the cost/risk of initiating new exposure at current price.

Technical Summary

Sell

Buy

Positive Catalysts

- Options positioning skewed bullish (low put/call ratios).

Neutral/Negative Catalysts

with RSI near overbought, increasing pullback risk for a “buy now” entry.
shows sharp YoY deterioration (revenue -39%, net income/EPS down to 0), which can weigh on sentiment until explained/normalized.
signals higher expected moves and uncertainty into the earnings window.

Financial Performance

Latest quarter: 2025/Q3.
Revenue: 1.132B, down -39.01% YoY (sharp contraction).
Profitability: Net income 0 (down -100% YoY); EPS 0 (down -100% YoY).
Margin snapshot provided also fell to 0 (down -100% YoY), reinforcing that the quarter was unusually weak.
Near-term focus: QDEC 2025 earnings (2026-02-19 pre-market) is the next key checkpoint to confirm whether Q3 weakness was temporary or structural.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent rating/target trend is mixed but slightly positive overall: several targets were raised in Jan (Wells Fargo to $47; Morgan Stanley to $37), while some were trimmed in Dec (UBS to $43; Morgan Stanley to $36; JPMorgan to $41).
Bull case (Wall St pros): defensible premium valuation on growth cadence into 2026–2028, balance sheet de-risking (per Wells), and resilient regulated utility recovery mechanisms (per KeyBanc).
Bear/neutral case: Morgan Stanley and JPMorgan remain Neutral/Equal Weight, implying limited upside at current levels or a need for clearer growth drivers.
Practical read-through: analysts see CNP as a quality/steady utility with pockets of upside, but not a screaming buy at this exact price.

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: 40.220

Low

Averages

41.8

High

Current: 40.220

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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