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NRG Energy (NRG) Q3 Earnings: Stock to Beat Estimates?
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We expect NRG Energy (NRG - Free Report) to beat earnings estimates when it reports third-quarter 2016 results on Nov 4, before the opening bell. In the preceding quarter, the company has delivered a negative earnings surprise of 233.33%.
Why a Likely Positive Surprise?
Our proven model shows that NRG Energy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates and NRG Energy has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate of 92 cents and the Zacks Consensus Estimate of 88 cents, is +4.55%. This is a meaningful and leading indicator of a likely positive surprise.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: NRG Energy currently carries a Zacks Rank #3. The combination of NRG Energy’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
Above-average temperatures during the third quarter will benefit NRG Energy by creating higher demand for utility services.
Moreover, NRG Energy is working to lower its debt levels and strengthen its balance sheet. Reduction in debts will lower the company’s interest burden and positively impact its bottom-line.
Other Stocks to Consider
Besides NRG Energy, we have several other stocks in the utility space that possess the right combination of elements for an earnings beat.
AES Corporation (AES - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3. It is expected to report earnings on Nov 4.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3. The company is expected to release third-quarter 2016 earnings on Nov 4.
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NRG Energy (NRG) Q3 Earnings: Stock to Beat Estimates?
We expect NRG Energy (NRG - Free Report) to beat earnings estimates when it reports third-quarter 2016 results on Nov 4, before the opening bell. In the preceding quarter, the company has delivered a negative earnings surprise of 233.33%.
Why a Likely Positive Surprise?
Our proven model shows that NRG Energy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates and NRG Energy has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate of 92 cents and the Zacks Consensus Estimate of 88 cents, is +4.55%. This is a meaningful and leading indicator of a likely positive surprise.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
NRG ENERGY INC Price and EPS Surprise
NRG ENERGY INC Price and EPS Surprise | NRG ENERGY INC Quote
Zacks Rank: NRG Energy currently carries a Zacks Rank #3. The combination of NRG Energy’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors to Consider
Above-average temperatures during the third quarter will benefit NRG Energy by creating higher demand for utility services.
Moreover, NRG Energy is working to lower its debt levels and strengthen its balance sheet. Reduction in debts will lower the company’s interest burden and positively impact its bottom-line.
Other Stocks to Consider
Besides NRG Energy, we have several other stocks in the utility space that possess the right combination of elements for an earnings beat.
Pattern Energy Group Inc. is scheduled to release third-quarter results on Nov 7. The company has an Earnings ESP of +9.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
AES Corporation (AES - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #3. It is expected to report earnings on Nov 4.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.28% and a Zacks Rank #3. The company is expected to release third-quarter 2016 earnings on Nov 4.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>