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Why NRG Energy (NRG) Could Be Positioned for a Surge

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NRG Energy, Inc. (NRG - Free Report) is an integrated power company that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on NRG’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that NRG Energy could be a solid choice for investors.

Current Quarter Estimates for NRG

In the past 30 days, three estimates have gone higher for NRG Energy while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 23 cents a share 30 days ago, to 32 cents per share today, a move of 39.1%.

Current Year Estimates for NRG

Meanwhile, NRG Energy’s current year figures are also looking quite promising, with one estimate moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 50 cents per share 30 days ago to 67 cents per share today, an increase of 34%.

NRG Energy, Inc. Price and Consensus

Bottom Line

The stock has also started to move higher lately, adding 36.2% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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