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Here's Why You Should Add NRG Energy (NRG) to Your Portfolio

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Estimates for NRG Energy, Inc. (NRG - Free Report) have been revised upward in the past 90 days, which reflects analysts’ optimism in the stock. The Zacks Consensus Estimate for 2019 earnings has moved up 19.5%.

Shares of NRG Energy have rallied 3.1.4% in the past 12 months, against the industry’s decline of 0.5%.


Let’s focus on the factors that make NRG Energy an attractive stock to invest in.

Zacks Rank & Surprise History

The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NRG Energy pulled off an average positive earnings surprise of 219.16% in the last four quarters.

Growth Projections

The Zacks Consensus Estimate for 2019 earnings per share is pegged at $4.72, reflecting year-over-year surge of 57.22%. The Zacks Consensus Estimate for 2019 revenues is pegged at $8.80 billion.

 VGM Score

NRG Energy has an impressive VGM Score of A. Here V stands for Value, G for Growth and M for Momentum with the score being a weighted combination of all three factors. Back tested results show that stocks with a favorable VGM Score of A or B coupled with a bullish Zacks Rank are best investment options.

Transformation Plan & Share Repurchase

NRG Energy has initiated the three-year Transformation Plan in July 2017. This plan is designed to boost earnings, increase cost savings and raise shareholders’ value. The plan is expected to generate cost savings of $590 million annually in 2019 and 2020. The company expects to reach the highest level of operational performance. Projected earnings, benefits from Transformation Plans and growth in retail business will enable the company to generate more than $2.6 billion cash through 2019. Moreover, The Board of Directors announced an incremental $500-million share repurchase authorization to be executed in 2019.

Stocks to Consider

A few other top-ranked stocks from the same industry are Ameren Corporation (AEE - Free Report) , IDACORP, Inc (IDA - Free Report) and Xcel Energy Inc (XEL - Free Report) . All three stocks hold a Zacks Rank #2.

Long-term earnings growth of Ameren, IDACORP and FirstEnergy is pegged at 6.80%, 2.80% and 5.90%, respectively.

The Zacks Consensus Estimate for 2019 earnings of Ameren, IDACORP and FirstEnergy inched up 0.3%, 1.1% and 0.8% in the past 90 days, respectively.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


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Ameren Corporation (AEE) - free report >>

Xcel Energy Inc. (XEL) - free report >>

NRG Energy, Inc. (NRG) - free report >>

IDACORP, Inc. (IDA) - free report >>

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