Central Puerto(CEPU) Shares Soar 3.71% on Solar Acquisition

Central Puerto(CEPU) shares surged 3.71% intraday, marking a two-day winning streak with a cumulative gain of 7.16%. The stock price reached its highest level since February 2025, reflecting strong investor confidence and market momentum.

The strategy of buying CEPU shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and steady, if modest, gains.

Maximum Drawdown: The maximum drawdown during this period was -15.8% in May 2025, which occurred after CEPU's stock price reached a high in early 2025. This indicates that the strategy can withstand market downturns but with significant losses.

Cumulative Returns: The cumulative returns over the past 5 years were approximately 10%, with an average annual return of about 2%. This suggests that the strategy provided modest gains but at a conservative rate.

Monthly Performance: The strategy showed inconsistent monthly returns, with some months experiencing positive gains and others incurring losses. For example, in May 2025, there was a significant loss of -15.8%, while in October 2024, there was a gain of 5.3%.

In conclusion, while the strategy of buying CEPU shares after they reached a recent high and holding for 1 week provided some gains over the past 5 years, the returns were modest and inconsistent. The significant drawdown in May 2025 highlights the importance of risk management in such a volatile scenario. Investors should consider these factors along with their risk tolerance and investment horizon before adopting this strategy.

Central Puerto SA (CEPU) has been in the spotlight recently due to significant developments that have positively impacted its stock performance. On May 19, the company's shares experienced a notable increase, driven by strategic acquisitions and market optimism. The acquisition of the 117-megawatt Guañizuil IIA solar power plant in Argentina from Scatec ASA is a key factor contributing to this positive market sentiment. This acquisition not only expands Central Puerto's renewable energy portfolio but also positions the company as a leader in the growing solar energy sector in Argentina.

The successful completion of this acquisition has been well-received by investors, who see it as a strategic move that aligns with the company's long-term growth objectives. The addition of the Guañizuil IIA solar power plant enhances Central Puerto's operational capabilities and diversifies its revenue streams, making it more resilient to market fluctuations. This strategic acquisition is expected to drive future growth and profitability for Central Puerto, further bolstering investor confidence in the company's prospects.