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Are Investors Undervaluing NRG Energy (NRG) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
NRG Energy (NRG - Free Report) is a stock many investors are watching right now. NRG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.71, which compares to its industry's average of 14.54. Over the last 12 months, NRG's Forward P/E has been as high as 13.06 and as low as 4.45, with a median of 7.40.
Investors will also notice that NRG has a PEG ratio of 0.72. 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. NRG's industry has an average PEG of 2.02 right now. Over the past 52 weeks, NRG's PEG has been as high as 1.24 and as low as 0.12, with a median of 0.56.
Investors should also recognize that NRG has a P/B ratio of 2.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.22. Within the past 52 weeks, NRG's P/B has been as high as 2.93 and as low as 1.59, with a median of 1.99.
Another great Utility - Electric Power stock you could consider is RWE AG (RWEOY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
RWE AG is currently trading with a Forward P/E ratio of 9.20 while its PEG ratio sits at 6.34. Both of the company's metrics compare favorably to its industry's average P/E of 14.54 and average PEG ratio of 2.02.
Over the past year, RWEOY's P/E has been as high as 20.53, as low as 8.72, with a median of 17.57; its PEG ratio has been as high as 6.42, as low as 2.45, with a median of 0.56 during the same time period.
Additionally, RWE AG has a P/B ratio of 2.59 while its industry's price-to-book ratio sits at 2.22. For RWEOY, this valuation metric has been as high as 2.96, as low as 1.14, with a median of 2.29 over the past year.
These are just a handful of the figures considered in NRG Energy and RWE AG's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NRG and RWEOY is an impressive value stock right now.
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Are Investors Undervaluing NRG Energy (NRG) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
NRG Energy (NRG - Free Report) is a stock many investors are watching right now. NRG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.71, which compares to its industry's average of 14.54. Over the last 12 months, NRG's Forward P/E has been as high as 13.06 and as low as 4.45, with a median of 7.40.
Investors will also notice that NRG has a PEG ratio of 0.72. 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. NRG's industry has an average PEG of 2.02 right now. Over the past 52 weeks, NRG's PEG has been as high as 1.24 and as low as 0.12, with a median of 0.56.
Investors should also recognize that NRG has a P/B ratio of 2.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.22. Within the past 52 weeks, NRG's P/B has been as high as 2.93 and as low as 1.59, with a median of 1.99.
Another great Utility - Electric Power stock you could consider is RWE AG (RWEOY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
RWE AG is currently trading with a Forward P/E ratio of 9.20 while its PEG ratio sits at 6.34. Both of the company's metrics compare favorably to its industry's average P/E of 14.54 and average PEG ratio of 2.02.
Over the past year, RWEOY's P/E has been as high as 20.53, as low as 8.72, with a median of 17.57; its PEG ratio has been as high as 6.42, as low as 2.45, with a median of 0.56 during the same time period.
Additionally, RWE AG has a P/B ratio of 2.59 while its industry's price-to-book ratio sits at 2.22. For RWEOY, this valuation metric has been as high as 2.96, as low as 1.14, with a median of 2.29 over the past year.
These are just a handful of the figures considered in NRG Energy and RWE AG's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NRG and RWEOY is an impressive value stock right now.