NRG Energy (NRG) Gains As Market Dips: What You Should Know
NRG Energy (NRG) closed at $34.68 in the latest trading session, marking a +0.73% move from the prior day. This move outpaced the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.67%.
Heading into today, shares of the power company had gained 6.93% over the past month, outpacing the Utilities sector's loss of 1.46% and lagging the S&P 500's gain of 8.32% in that time.
NRG Energy will be looking to display strength as it nears its next earnings release. In that report, analysts expect NRG Energy to post earnings of $1.43 per share. This would mark year-over-year growth of 247.42%. Meanwhile, our latest consensus estimate is calling for revenue of $8.67 billion, up 23.09% from the prior-year quarter.
Any recent changes to analyst estimates for NRG Energy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1% higher within the past month. NRG Energy is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, NRG Energy is currently trading at a Forward P/E ratio of 6.84. For comparison, its industry has an average Forward P/E of 17.5, which means NRG Energy is trading at a discount to the group.
Investors should also note that NRG has a PEG ratio of 0.57 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 3.15 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% 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.
To follow NRG in the coming trading sessions, be sure to utilize Zacks.com.
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NRG Energy, Inc. (NRG) : Free Stock Analysis Report
