NRG Energy (NRG) closed the most recent trading day at $40.61, moving -0.34% from the previous trading session. This move lagged the S&P 500's daily gain of 0.29%. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.19%.
Prior to today's trading, shares of the power company had gained 3.61% over the past month. This has outpaced the Utilities sector's gain of 0.81% and the S&P 500's gain of 0.32% in that time.
NRG will be looking to display strength as it nears its next earnings release, which is expected to be November 7, 2019. On that day, NRG is projected to report earnings of $2.15 per share, which would represent year-over-year growth of 128.72%.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.92 per share and revenue of $9.40 billion. These totals would mark changes of +62.66% and -9.62%, respectively, from last year.
Any recent changes to analyst estimates for NRG 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.77% higher. NRG currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, NRG is holding a Forward P/E ratio of 10.4. For comparison, its industry has an average Forward P/E of 21.25, which means NRG is trading at a discount to the group.
Investors should also note that NRG has a PEG ratio of 0.28 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 was holding an average PEG ratio of 3.93 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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