In the latest trading session, NRG Energy (NRG - Free Report) closed at $39.02, marking a +0.26% move from the previous day. This change outpaced the S&P 500's 1.56% loss on the day. At the same time, the Dow lost 1.19%, and the tech-heavy Nasdaq lost 1.67%.
Coming into today, shares of the power company had gained 2.85% in the past month. In that same time, the Utilities sector gained 2.22%, while the S&P 500 lost 1.22%.
Wall Street will be looking for positivity from NRG as it approaches its next earnings report date. In that report, analysts expect NRG to post earnings of $2.17 per share. This would mark year-over-year growth of 130.85%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.89 per share and revenue of $9.36 billion, which would represent changes of +61.41% and -10%, respectively, from the prior year.
Any recent changes to analyst estimates for NRG should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.97% higher. NRG currently has a Zacks Rank of #2 (Buy).
Investors should also note NRG's current valuation metrics, including its Forward P/E ratio of 10.01. Its industry sports an average Forward P/E of 21.61, so we one might conclude that NRG is trading at a discount comparatively.
Investors should also note that NRG has a PEG ratio of 0.28 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NRG's industry had an average PEG ratio of 3.97 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 68, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.