December 15, 2018: Trade-of-the-Week: Center Point Energy Inc. (CNP)

By Tech_Spec
17-December-2018 4:55:21 AM
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This week’s trade comes from the multi-utilities sector.  After the rent weakness in the markets, investors are moving toward safety.  CNP is one of the few stocks in the US markets that are making a new high regardless of the turmoil.

Company Profile: CenterPoint Energy, Inc. operates as a public utility holding company in the United States. The company’s Electric Transmission & Distribution segment offers electric transmission and distribution services to retail electric providers, municipalities, electric cooperatives, and other distribution companies. As of December 31, 2017, this segment owned 28,883 pole miles of overhead distribution lines and 24,662 circuit miles of underground distribution lines; and 235 substations with a transformer capacity of 64,924 megavolt amperes, as well as operated 14 regional service centers.

Fundamentals:

Trailing P/E: 18.40, Forward P/E: 17.05

Beta: 0.46, EPS: 1.57

Revenue growth YoY: 27.71%

ROA: 8.85%, ROE: 14.39%

Debt-to-Equity: 1.66, P/B: 3.12

Additional Fundamental data: https://www.theglobeandmail.com/investing/markets/stocks/CNP-N/

Technicals:

Just broke out of a 16-month consolidation

New 52-week high, New all-time high

Buying momentum is positive and rising, Buying volume is slightly elevated

1st support level is at $28.80, The safety stop is at $28.10

The target is $33.50

Suggested buying approach: Buy a full position at the current price level. If CNP pulls back, as long as the retracement is above the safety stop level, wait for confirmation of support before considering adding to the position. Always use a 3% trailing stop.
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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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