Despite surging profits investors should avoid Centrica shares

Profits in the energy sector are booming but Centrica shares are struggling. Rupert Hargreaves explains why he’d avoid the stock.

Centrica HQ
Tailwinds have helped Centrica, but it's still not a screaming buy
(Image credit: © Luke MacGregor/Bloomberg via Getty Images )

The European energy market is in crisis, but for some companies, profits are booming. That’s the position British Gas owner Centrica (LSE: CNA) finds itself in today.

The group, one of the largest energy suppliers to households and businesses in the UK, is seeing profits at its generation business surge, although its retail arm is feeling the heat.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.