Here’s Why CenterPoint Energy (CNP) Rose in Q1

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Russell Midcap Index posted negative returns. Significant policy uncertainty, signaled by aggressive tariff announcements, reversed the positive sentiment prevailing in the domestic market at the start of the year, turning it negative. The first-quarter macroeconomic environment showed signs of slowdown but not recession. The economy seems okay, but downside risks are rising. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks such as CenterPoint Energy, Inc. (NYSE:CNP). CenterPoint Energy, Inc. (NYSE:CNP) is a US based public utility holding company that operates in the Electric and Natural Gas segments. The one-month return of CenterPoint Energy, Inc. (NYSE:CNP) was -1.88%, and its shares gained 19.61% of their value over the last 52 weeks. On June 24, 2025, CenterPoint Energy, Inc. (NYSE:CNP) stock closed at $36.48 per share, with a market capitalization of $23.812 billion.

Carillon Scout Mid Cap Fund stated the following regarding CenterPoint Energy, Inc. (NYSE:CNP) in its Q1 2025 investor letter:

“CenterPoint Energy, Inc. (NYSE:CNP), a regulated utility, benefitted from improved rulings from one of its key regulators in Texas, following a difficult storm season and outages in 2024. With operations and regulations moving back on track, we believe CenterPoint’s earnings per share growth should recover in 2025.”

A technician surveying a substation site, showing the large scale operations the company undertakes.

CenterPoint Energy, Inc. (NYSE:CNP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held CenterPoint Energy, Inc. (NYSE:CNP) at the end of the first quarter, which was 29 in the previous quarter. While we acknowledge the potential of CenterPoint Energy, Inc. (NYSE:CNP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of CNP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.