NRG Energy (NRG) closed at $40.51 in the latest trading session, marking a +0.32% move from the prior day. This change outpaced the S&P 500's 0.08% loss on the day. Elsewhere, the Dow lost 0.07%, while the tech-heavy Nasdaq lost 0.59%.
Coming into today, shares of the power company had gained 1.97% in the past month. In that same time, the Utilities sector lost 1.07%, while the S&P 500 gained 2.7%.
Investors will be hoping for strength from NRG as it approaches its next earnings release, which is expected to be November 7, 2019. On that day, NRG is projected to report earnings of $2.14 per share, which would represent year-over-year growth of 127.66%.
NRG's full-year Zacks Consensus Estimates are calling for earnings of $3.92 per share and revenue of $9.40 billion. These results would represent year-over-year changes of +62.66% and -9.62%, respectively.
Investors should also note any recent changes to analyst estimates for NRG. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.77% higher. NRG currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that NRG has a Forward P/E ratio of 10.3 right now. Its industry sports an average Forward P/E of 20.96, so we one might conclude that NRG is trading at a discount comparatively.
Also, we should mention that NRG has a PEG ratio of 0.28. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NRG's industry had an average PEG ratio of 3.88 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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