10 Best Energy Stocks Capitalizing on the Data Center Boom

7. CenterPoint Energy, Inc. (NYSE:CNP)

Upside Potential: 10.88%

Number of Hedge Fund Holders: 42

CenterPoint Energy, Inc. (NYSE:CNP) is one of the 10 Best Energy Stocks Capitalizing on the Data Center Boom. Based on 20 analyst ratings compiled by CNN, 50% rated the stock Hold, while 45% rated it Buy. As of June 9, the stock has an average price target of $47, representing 10.88% upside from the current price of $42.39.

In May, Jefferies analyst Jamieson Ward reduced the price target on CenterPoint Energy to $48 from $49 while maintaining a Buy rating on the stock, according to a report by Investing.com. The analyst noted that financing remains de-risked, highlighting that cash management is supporting $1 billion of capital expenditures without additional equity.

Earlier in May, Morgan Stanley analyst David Arcaro reduced its price target on the stock to $39 from $41 while maintaining an Equal Weight rating as it updated its price targets for Regulated & Diversified Utilities / IPPs in North America for April, according to a report by TheFly.

For the first quarter of the year, CenterPoint Energy reported a higher net income of $316 million, or $0.48 per diluted share, compared to the $297 million or $0.45 per diluted share in the same period last year.

In its first quarter earnings report, the company announced a pipeline of over 12 gigawatts of firmly committed industrial load. By 2029, the company is expecting to energize 8 gigawatts of projects in the Greater Houston area, with 3.5 gigawatts already under construction.

CenterPoint Energy, Inc. (NYSE:CNP) is an energy delivery firm engaged in electric transmission and distribution, power generation, and natural gas distribution operations.