For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

CenterPoint Energy (CNP)

Incorporated in 2002, Houston, TX-based CenterPoint Energy Inc. is a domestic energy delivery company that provides electric transmission & distribution, natural gas distribution and competitive natural gas sales and services operations. The company maintains the wires, poles and electric infrastructure serving more than 2.5 million metered customers in the greater Houston area and in southwestern Indiana. CenterPoint Energy also owns and operates nearly 1,300 megawatts of electric generation capacity in Indiana. In December 2021, CenterPoint decided to reduce the midstream exposure following the completion of Enable Midstream Partners, LP’s merger with Energy Transfer. CenterPoint’s 53.7% of Enable common units converted into 201 million ET common units. In February and March 2022, CenterPoint Energy completed the execution of its previously announced plan to exit the midstream sector by selling the remaining Energy Transfer Common Units and Energy Transfer Series G Preferred Units.

CNP is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 17.1X for the current fiscal year compared to the Utility - Electric Power industry's P/E of 14.5X. Additionally, CNP has a PEG Ratio of 2.3 and a Price/Cash Flow ratio of 7.3X. Value investors should also note CNP's Price/Sales ratio of 2X.

Many value investors pay close attention to a company's earnings as well. For CNP, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.63 per share for 2024. Per share CNP boasts an average earnings surprise of 2.2%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding CNP to their portfolios.