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NRG Energy (NRG) Laps the Stock Market: Here's Why

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In the latest trading session, NRG Energy (NRG - Free Report) closed at $112.41, marking a +0.45% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq added 0.08%.

The power company's stock has climbed by 0.32% in the past month, falling short of the Utilities sector's gain of 1.91% and the S&P 500's gain of 2.37%.

The investment community will be closely monitoring the performance of NRG Energy in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2025. The company's upcoming EPS is projected at $1.05, signifying a 7.89% drop compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for NRG Energy. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% lower. NRG Energy is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, NRG Energy is currently trading at a Forward P/E ratio of 14.91. Its industry sports an average Forward P/E of 17.49, so one might conclude that NRG Energy is trading at a discount comparatively.

We can additionally observe that NRG currently boasts a PEG ratio of 1.32. 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. Utility - Electric Power stocks are, on average, holding a PEG ratio of 2.59 based on yesterday's closing prices.

The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 146, this industry ranks in the bottom 42% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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