Today we’re going to take a look at the well-established CenterPoint Energy, Inc. (NYSE:CNP). The company’s stock saw significant share price movement during recent months on the NYSE, rising to highs of US$20.98 and falling to the lows of US$17.70. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether CenterPoint Energy’s current trading price of US$19.01 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at CenterPoint Energy’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
View our latest analysis for CenterPoint Energy
What’s the opportunity in CenterPoint Energy?
The stock is currently trading at US$19.01 on the share market, which means it is overvalued by 34% compared to my intrinsic value of $14.21. This means that the opportunity to buy CenterPoint Energy at a good price has disappeared! Furthermore, CenterPoint Energy’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.
What kind of growth will CenterPoint Energy generate?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Though in the case of CenterPoint Energy, it is expected to deliver a highly negative revenue growth over the next few years, which doesn’t help build up its investment thesis. It appears that risk of future uncertainty is high, at least in the near term.
What this means for you:
Are you a shareholder? If you believe CNP should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. Given the risk from a negative growth outlook, this could be the right time to de-risk your portfolio. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on CNP for a while, now may not be the best time to enter into the stock. Price climbed passed its true value, in addition to a risky future outlook. However, there are also other important factors which we haven’t considered today, such as the track record of its management. Should the price fall in the future, will you be well-informed enough to buy?
So if you’d like to dive deeper into this stock, it’s crucial to consider any risks it’s facing. For instance, we’ve identified 3 warning signs for CenterPoint Energy (1 is a bit concerning) you should be familiar with.
If you are no longer interested in CenterPoint Energy, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email email@example.com.
Google’s hardware chief said after launching the Pixel 5 that the world doesn’t need ‘another thousand-dollar phone’
Google unveiled the $700 Pixel 5 on Wednesday, one of its first 5G smartphones that’s launching at a lower price than last year’s Pixel 4 did.
It’s built on the success of the Pixel 4a and 3a, as Google says its goal was to deliver affordability and 5G.
But it’s also launching as the market for cheaper smartphones is getting more competitive with new low-cost models from Apple and Samsung.
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Google made a big statement about how it hopes to differentiate its Pixel smartphones in an already crowded market: by offering lower prices.
Google took the wraps off its new Pixel 5 flagship on Wednesday, which starts at $700 and is among Google’s first phones to offer 5G support.
The Pixel 5’s $700 price tag might not seem unusually cheap compared to some of its rivals. But the fact that it’s the priciest phone in Google’s lineup, not a starting point, says a lot about the search giant’s approach to the industry.
“What the world doesn’t seem like it needs right now is another $1,000 phone,” Rick Osterloh, Google’s senior vice president of devices and services, said on a call with reporters on Wednesday.
Other than 5G, the Pixel 5 doesn’t offer much that’s new to the industry, marking a stark contrast from last year’s Pixel 4. The headline feature of that phone was its Motion Sense capabilities, which allow users to control the device using gestures without physically touching it.
But it also came with a higher starting price of $800. This year, Google is doubling down on value and catching up where the Pixel 4 fell short, particularly when it comes to its camera and battery life.
Google isn’t finished with its Soli technology, the miniature radar it built into the Pixel 4 that powers its motion sensing features, according to Osterloh. But it’s focus for 2020 is on delivering 5G at an accessible price. Early phones that supported 5G all came at a premium price, but that’s started to shift over the past year as companies like Samsung and OnePlus have launched affordable 5G devices.
“I’m really glad we built these technologies, they’ll be used in the future,” he said. “But they’re very expensive, and so we wanted to try to offer a lot of value this year and that’s what we did.”
To accomplish this, Google is building off the success of its cheaper A-series line of devices. Last year’s $400 Pixel 3a became the best-selling unlocked phone on Amazon in the US shortly following its launch. It released a follow-up to that phone in August, the $350 Pixel 3a, and on Wednesday introduced a 5G version for $500.
“I think the easiest way to think about it is: Pixel 4a, I think, has done a great job of delivering the essential smartphone elements,” Osterloh said. “And we built out from that.”
Google’s Pixel 3a and 4a have earned praise from tech critics, but the competition for cheaper smartphones has only increased since the 3a’s launch last May. Apple introduced a direct rival in its $400 iPhone SE, which it began selling in April. One analyst also expects it to launch a cheaper version of the upcoming iPhone 12 without 5G in 2021.
Samsung is also launching the Galaxy S20 Fan Edition, a $700 version of its flagship phone that comes with differences in terms of its design and camera.
Still, that doesn’t mean Google is completely done with high-end phones.
“I wouldn’t rule it out,” Osterloh said in response to a question about whether Google would compete in the $1,000 smartphone market again. “Certainly what we announced today is where we’re at right now.”
Read the original article on Business Insider
Presidential Debate Moderators Will Get ‘Additional Tools’ to Keep Order
The Commission on Presidential Debates will provide moderators of the remaining debates with “additional tools to maintain order” following a chaotic performance by President Trump on Tuesday night.
Trump interrupted Joe Biden dozens of times, often in insulting terms, and was repeatedly admonished by moderator Chris Wallace to stick to the ground rules. Many commentators called the debate a “hot mess” and a disservice to voters.
“Last night’s debate made clear that additional structure should be added to the format of the remaining debates to ensure a more orderly discussion of the issues,” the commission said in a statement. “The CPD will be carefully considering the changes that it will adopt and will announce those measures shortly.”
The Trump campaign took offense at the idea of changing the rules.
“They’re only doing this because their guy got pummeled last night,” said campaign spokesman Tim Murtaugh, in a statement. “President Trump was the dominant force and now Joe Biden is trying to work the refs. They shouldn’t be moving the goalposts and changing the rules in the middle of the game.”
Steve Scully, a C-SPAN host, will have the honors for the second presidential debate, a town hall-style event to be held on Oct. 15 at Adrienne Arsht Center for the Performing Arts in Miami.
Kristen Welker, White House correspondent for NBC News, will moderate the final debate on Oct. 22 at Belmont University in Nashville.
In its statement, the commission thanked Wallace, host of “Fox News Sunday,” for “the professionalism and skill he brought to last night’s debate.”
Wallace was criticized for not stepping in sooner to rein in President Trump. But about 45 minutes in, he did yell “Stop!” and implored the candidates not to interrupt.
“I think the country would be better served if we allowed both people to speak with fewer interruptions,” Wallace said. When Trump asked him to admonish Biden as well, Wallace retorted, “Frankly you’ve been doing more interrupting than he has.”
The next debate will be between the vice presidential candidates on Oct. 7, and will be held at the University of Utah in Salt Lake City. The moderator for that event, which figures to be more civil, is Susan Page of USA Today.
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Following FDA Approval, This 5-Star Analyst Says ‘Buy’
Goldman Sachs Predicts Over 40% Rally for These 3 Stocks
A new wave of optimism is splashing onto the Street. Investment firm Goldman Sachs just gave its three-month stock forecast a boost, lifting it from Neutral to Overweight, with it also projecting “high single-digital returns” for global stocks over the next year.What’s behind this updated approach? Goldman Sachs strategist Christian Mueller-Glissmann cites the impressive rebound in global earnings growth and reduced equity costs as the drivers of the estimate revision. On top of this, a “broader procyclical shift” in stocks and other assets could take place during the remainder of this year.“We have shifted more cyclical on sectors and themes tactically but still prefer growth vs. value on a strategic horizon… In the near-term, elevated uncertainty on U.S. elections and a better global growth outlook might benefit non-U.S. equities more, but in the medium term a large weight in structural growth stocks is likely to support the S&P 500,” Mueller-Glissmann noted.As for the “most important catalyst” that could spur growth optimism in the next year, the strategist points to additional clarity on when and how a COVID-19 vaccine will be available.Turning Mueller-Glissmann’s outlook into concrete recommendations, Goldman Sachs’ analysts are pounding the table on three stocks that look especially compelling. According to these analysts, each name is poised to surge in the 12 months ahead.Raytheon Technologies (RTX)First up we have Raytheon Technologies, which is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers. While shares have stumbled in 2020, Goldman Sachs thinks the weakness presents a buying opportunity.Representing the firm, analyst Noah Poponak points out that RTX is “too high quality and well positioned of a company to trade at an 11% free cash flow yield on the fully aerospace-recovered and fully synergized 2023E free cash.”The analyst’s bullish outlook is largely driven by the company’s aerospace aftermarket (the secondary market that deals with the installation of equipment, spare parts, accessories and components after the sale of the aircraft by the original equipment manufacturer) business, which Poponak argues is “the best sub-market within Aerospace over the long-term.” This segment makes up roughly 45% of RTX’s aerospace revenue.Even though COVID-19 flight disruptions have weighed on this part of the business, Poponak points out total aircraft in service is down only 25% year-over-year, and flights have dipped less than 50%. He added, “China domestic traffic is now up year on year, and while international remains depressed, we believe the recovery in global air travel could be quicker from here than broad expectations for a recovery by 2023-2024.”Poponak highlights that in previous downturns, the aftermarket had to confront headwinds that arose from the increased use of parting out, inventory pooling and delayed aftermarket spending. “Even then, aftermarket grew at or faster than ASMs, and we believe there was pent-up demand heading into this downturn that support aftermarket tracking the recovery in global air travel. Long-term, we expect air traffic to grow 2X global GDP, as it has historically,” the analyst commented.Adding to the good news, the Geared Turbo Fan, which is a type of turbofan aircraft engine, product cycle could generate substantial revenue and EBIT growth at Pratt & Whitney, in Poponak’s opinion.“Given the high OE exposure to the A320neo, which has the strongest backlog of any aircraft in the market, we see Pratt OE revenue holding up better and recovering faster than peers. New GTF deliveries will drive expansion in the installed base for Pratt, which was declining for most of the 2000s. Despite the end of V2500 OE deliveries, that program is just moving into the sweet-spot for shop visits on the aftermarket side,” Poponak opined.What’s more, Poponak sees merger synergies as capable of fueling margin expansion and cash generation, with the historical synergy capture in the space implying that upside to guidance isn’t out of the question.In line with his optimistic approach, Poponak stays with the bulls. To this end, he keeps a Buy rating and $86 price target on the stock. Investors could be pocketing a gain of 49%, should this target be met in the twelve months ahead. (To watch Poponak’s track record, click here)In general, other analysts echo Poponak’s sentiment. 7 Buys and 2 Holds add up to a Strong Buy consensus rating. With an average price target of $78.63, the upside potential comes in at 36.5%. (See RTX stock analysis on TipRanks)Boeing (BA)Moving on to another player in the aerospace space, Boeing has also struggled on account of the COVID-19 pandemic, with it failing to match the pace of the broader market. That being said, Goldman Sachs has high hopes for this name going forward.Firm analyst Noah Poponak, who also covers RTX, points out that BA has already trimmed production rate plans by half, compared to the peak plan from before the COVID crisis and MAX grounding. A slower-than-anticipated air travel rebound could result in more reductions, but the analyst argues these would be much smaller than the reductions that have already been witnessed. He added, “Historically, the best buying opportunities in BA shares are right after it has capitulated to production rate cuts.”According to Poponak, compared to previous economic declines, the peak to trough in the current downturn is larger and faster, although this is partly related to the grounding of the 737 MAX in 2019. “We believe this will result in a less severe dislocation of supply and demand balance, and see deliveries recovering to 2018 levels by 2024 as global air travel recovers and airlines replace accelerated retirements,” he explained.As for how the company can fulfill its new production rate plan “given the mix of its backlog is so much more weighted to growth than replacement,” Poponak believes “the answer is that airlines during this downturn are revising that mix.” Since the pandemic’s onset, airlines have revealed higher aircraft retirement plans, and braced for less growth. “That means for a given revision in an airline’s order book, there is also a substantial mix shift toward replacement from growth within the new delivery numbers. Therefore, the backlog will not necessarily lose all of its growth orders,” the analyst stated.Additionally, following an uptick in aircraft order cancellations in March and April, the pace has slowed. “Even assuming another 200-plus unit cancellations this year, we estimate the 737 MAX would have nearly 6X years of production by the middle of the decade at our revised production rate estimates,” Poponak mentioned.When it comes to free cash flow, the analyst is also optimistic, with Poponak forecasting that BA will see positive free cash flow in 2021. “We think the market is underestimating the mid-cycle achievable aircraft unit cash margins across the major programs, extrapolating temporarily negative items into the future, and underestimating the degree of inventory unwind likely to occur in 2021,” he said.If that wasn’t enough, the MAX recertification could be a major possible catalyst. The company is working towards recertification and return to service, with Poponak expecting both to come before year-end.Taking all of the above into consideration, Poponak maintains a Buy rating and $225 price target. This target conveys his confidence in BA’s ability to climb 35% higher in the next year.Turning to the rest of the analyst community, opinions are mixed. With 8 Buys, 8 Holds and 1 Sell assigned in the last three months, the word on the Street is that BA is a Moderate Buy. At $192.40, the average price target implies 16% upside potential. (See Boeing stock analysis on TipRanks)Immatics (IMTX)Combining the discovery of true targets for cancer immunotherapies (therapies that utilize the power of the immune system) with the development of the right T cell receptors, Immatics hopes to ultimately enable a robust and specific T cell response against these targets. Based on its cutting-edge approach, Goldman Sachs counts itself as a fan.Writing for the firm, analyst Graig Suvannavejh notes that unlike CAR-T approaches, a T cell receptor (TCR)-based approach can go after targets inside the cell, and fight the 90% of cancers which are solid tumor in nature. The company is advancing two technologies: ACTengine, designed for personalized TCR-based cell therapies, and TCER, which targets TCR-based bispecific antibodies.ACTengine is the more advanced technology, with its four assets IMA201, a genetically engineered T cell product candidate that targets melanoma-associated antigen 4 or 8, IMA202, which targets melanoma-associated antigen 1, IMA203, which targets preferentially expressed antigen in melanoma (PRAME) and IMA204 that targets COL6A3 (found in a tumor’s stroma and is highly prevalent in the tumor microenvironment/TME in a broad range of cancers) expected to enter the clinic soon.Using the TCER platform, IMTX is developing IMA401 and IMA402, or “off-the-shelf” biologics consisting of a portion of the TCR which directly recognizes cancer cells and a T cell recruiter domain which recruits and activates the patient’s T cells.Speaking to the market opportunity, Suvannavejh mentioned, “Cancer immunotherapies have made great strides over the past decade, and in particular, advances seen with CAR-T have paved the way for cell therapy-based approaches… CAR-T, however, has to date only shown limited effect in treating cancers that are solid tumor in nature. With more than 90% of all cancers being solid tumors — with lung, breast, colorectal and prostate cancers accounting for c.60% of the total — this is the opportunity for IMTX.” To this end, he believes cumulative 2035 sales could land at $15.5 billion for the ACTengine-based assets.Reflecting another positive, since 2017, IMTX has inked at least one significant partnership per year with top global biopharma companies. According to Suvannavejh, each provided non-dilutive funding opportunities.The analyst added, “…the ARYA Sciences Acquisition Corporation, a special purpose acquisition company (SPAC), merger that enabled IMTX to become a publicly traded entity brought in a deep roster of well-known, experienced healthcare-dedicated institutional investors. Taken together, we find these to be validating of IMTX’s longer-term prospects.”Looking ahead, the initial clinical data readouts for IMA201, IMA202 and IMA203, which are slated for Q1 2021, and investigational new drug (IND) application submissions for IMA204 and IMA401 in 2021 and YE2021, respectively, reflect key potential catalysts, in Suvannavejh’s opinion.Everything that IMTX has going for it convinced Suvannavejh to reiterate his Buy rating. Along with the call, he attached a $17 price target, suggesting 73% upside potential. (To watch Suvannavejh’s track record, click here)Are other analysts in agreement? They are. Only Buy ratings, 4, in fact, have been issued in the last three months. Therefore, the message is clear: IMTX is a Strong Buy. Given the $19 average price target, shares could soar 93% in the next year. (See Immatics stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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