Back to top

Image: Bigstock

NRG Energy (NRG) Stock Moves -0.41%: What You Should Know

Read MoreHide Full Article

NRG Energy (NRG - Free Report) closed at $31.48 in the latest trading session, marking a -0.41% move from the prior day. This change was narrower than the S&P 500's 1.1% loss on the day. Meanwhile, the Dow lost 1.19%, and the Nasdaq, a tech-heavy index, lost 3.27%.

Coming into today, shares of the power company had lost 7.25% in the past month. In that same time, the Utilities sector lost 0.06%, while the S&P 500 lost 3.02%.

Investors will be hoping for strength from NRG Energy as it approaches its next earnings release. On that day, NRG Energy is projected to report earnings of $0.20 per share, which would represent a year-over-year decline of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.24 billion, up 4.31% from the year-ago period.

NRG's full-year Zacks Consensus Estimates are calling for earnings of $4.73 per share and revenue of $27.17 billion. These results would represent year-over-year changes of +80.53% and -13.87%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.25% lower. NRG Energy is currently a Zacks Rank #3 (Hold).

Investors should also note NRG Energy's current valuation metrics, including its Forward P/E ratio of 6.68. This represents a discount compared to its industry's average Forward P/E of 17.26.

It is also worth noting that NRG currently has a PEG ratio of 6.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 2.93 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

NRG Energy, Inc. (NRG) - free report >>

Published in