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NRG or VST: Which Is the Better Value Stock Right Now?
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Investors interested in Utility - Electric Power stocks are likely familiar with NRG Energy (NRG - Free Report) and Vistra Corp. (VST - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, NRG Energy is sporting a Zacks Rank of #2 (Buy), while Vistra Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NRG is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NRG currently has a forward P/E ratio of 20.55, while VST has a forward P/E of 31.01. We also note that NRG has a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VST currently has a PEG ratio of 3.00.
Another notable valuation metric for NRG is its P/B ratio of 19.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VST has a P/B of 28.82.
These metrics, and several others, help NRG earn a Value grade of B, while VST has been given a Value grade of D.
NRG sticks out from VST in both our Zacks Rank and Style Scores models, so value investors will likely feel that NRG is the better option right now.
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NRG or VST: Which Is the Better Value Stock Right Now?
Investors interested in Utility - Electric Power stocks are likely familiar with NRG Energy (NRG - Free Report) and Vistra Corp. (VST - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, NRG Energy is sporting a Zacks Rank of #2 (Buy), while Vistra Corp. has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that NRG is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
NRG currently has a forward P/E ratio of 20.55, while VST has a forward P/E of 31.01. We also note that NRG has a PEG ratio of 1.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. VST currently has a PEG ratio of 3.00.
Another notable valuation metric for NRG is its P/B ratio of 19.57. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, VST has a P/B of 28.82.
These metrics, and several others, help NRG earn a Value grade of B, while VST has been given a Value grade of D.
NRG sticks out from VST in both our Zacks Rank and Style Scores models, so value investors will likely feel that NRG is the better option right now.