Skip to main content

Trade-Ideas LLC identified

CenterPoint Energy

(

CNP

) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified CenterPoint Energy as such a stock due to the following factors:

  • CNP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.6 million.
  • CNP has traded 177,345 shares today.
  • CNP traded in a range 228.1% of the normal price range with a price range of $0.74.
  • CNP traded below its daily resistance level (quality: 49 days, meaning that the stock is crossing a resistance level set by the last 49 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CNP with the Ticky from Trade-Ideas. See the FREE profile for CNP NOW at Trade-Ideas

More details on CNP:

TheStreet Recommends

CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The stock currently has a dividend yield of 4.3%. CNP has a PE ratio of 14. Currently there is 1 analyst that rates CenterPoint Energy a buy, no analysts rate it a sell, and 6 rate it a hold.

The average volume for CenterPoint Energy has been 4.0 million shares per day over the past 30 days. CenterPoint Energy has a market cap of $10.2 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.47 and a short float of 3.2% with 2.98 days to cover. Shares are up 30.3% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates CenterPoint Energy as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and growth in earnings per share. We feel its 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 net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Multi-Utilities industry average. The net income increased by 17.6% when compared to the same quarter one year prior, going from $131.00 million to $154.00 million.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 25.83% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CNP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CENTERPOINT ENERGY INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, CENTERPOINT ENERGY INC swung to a loss, reporting -$1.61 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($1.16 versus -$1.61).
  • CNP, with its decline in revenue, slightly underperformed the industry average of 10.9%. Since the same quarter one year prior, revenues fell by 18.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CENTERPOINT ENERGY INC is currently lower than what is desirable, coming in at 25.71%. Regardless of CNP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.76% trails the industry average.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.