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NRG Energy (NRG) Increases Despite Market Slip: Here's What You Need to Know

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NRG Energy (NRG - Free Report) closed the most recent trading day at $151.75, moving +2.97% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.01%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.05%.

Prior to today's trading, shares of the power company had lost 3.45% lagged the Utilities sector's gain of 0.15% and the S&P 500's gain of 5.37%.

The investment community will be closely monitoring the performance of NRG Energy in its forthcoming earnings report. The company is expected to report EPS of $1.07, down 27.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.31 billion, down 5.26% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.77 per share and revenue of $28.87 billion, indicating changes of +17.02% and +2.64%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for NRG Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 6.61% higher. As of now, NRG Energy holds a Zacks Rank of #4 (Sell).

In the context of valuation, NRG Energy is at present trading with a Forward P/E ratio of 18.98. This denotes a premium relative to the industry average Forward P/E of 18.08.

We can additionally observe that NRG currently boasts a PEG ratio of 1.17. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 2.62 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.

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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