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NRG Energy Scales a 52-Week High on Transformation Plan

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NRG Energy, Inc. (NRG - Free Report) hit a new 52-week high of $30.11 before closing the session a bit lower at $29.89 on Mar 12. Year to date, the stock has delivered an impressive return of about 75.7% compared with the S&P 500 index’s rally of 18.0%.

Over the past 52 weeks, NRG Energy’s shares have ranged from a low of $14.52 to a high of $30.11. Average volume of shares traded over the last three months is approximately 6.01 million.



What's Driving NRG Energy Higher?

NRG Energy delivered an average positive earnings surprise of 374.24% in the past four quarters. The Zacks Consensus Estimate for 2018 also moved up 52.6% in the last 60 days.

The company continues to work and benefit from its Transformation Plan, which was announced in July 2017. The company realized cost savings of $150 million in the fourth quarter, up from its target of $65 million in 2017. Under this plan, the company aims to save $1 billion through recurring cost cuts and margin improvements.

NRG Energy is also divesting non-core assets to focus on core assets and strengthen balance sheet through reduction of debts. The company reduced its existing debt by $604 million in 2017, which lowered annual interest burden by $47 million.

NRG Energy will continue to work on its fossil fuel decarburization strategy and promote electricity generation from alternate sources. The company has completed the construction of Petra Nova — the world’s largest post-combustion carbon-capture system — which is capable of capturing more than 5,000 tons of CO2 per day. The amount is equivalent to taking more than 350,000 cars off the road.

Zacks Rank & Stocks to Consider

NRG Energy carries a Zacks Rank #3 (Hold).

A few other better-ranked stocks in the same industry are Public Service Enterprise Group Incorporated (PEG - Free Report) , CenterPoint Energy, Inc. (CNP - Free Report) and NextEra Energy, Inc. (NEE - Free Report) . Public Service Enterprise and NextEra Energy carry a Zacks Rank #2 (Buy), while CenterPoint Energy sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Public Service Enterprise Group (PEG - Free Report) posted an average positive earnings surprise of 4.43% in the past four quarters. The Zacks Consensus Estimate moved up .64% in the last 30 days.

CenterPoint Energy (CNP - Free Report) delivered an average positive earnings surprise of 11.5% in the past four quarters. The Zacks Consensus Estimate moved up 5.4% in the last 30 days.

NextEra Energy (NEE - Free Report) pulled off an average positive earnings surprise of 4.75% in the past four quarters. The Zacks Consensus Estimate moved up 65% in the last 30 days.

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