Jim Cramer on NRG: "I Think It's a Very Well-Run Company"

NRG Energy, Inc. (NYSE:NRG) is one of the stocks on Jim Cramer’s radar recently. When a caller asked if the stock could get a signature, Cramer “Booyah!”, he replied:

“You are going to get a Booyah because I like the nuclear component there. I think it’s a very well-run company.”

NRG Energy, Inc. (NYSE:NRG) produces and sells electricity from multiple sources and provides energy management, home services, and smart home solutions. Cramer mentioned the company while discussing the performance of S&P 500 stocks during the July 1 episode and said:

“Next up is NRG Energy, which was the second best performer, up 78%. This Houston-based power generation utility is roaring thanks to the insatiable demand for electricity in the year of AI data centers. Lately, these power generation utilities have been huge winners. I mean, we saw it with Constellation Energy, Vistra. It’s happening again with NRG. However, NRG is only partly an independent power producer.

[The] company also has a residential utility as well as a home solar business. And as the Wall Street Journal recently pointed out, it makes a lot of money from derivatives trading. I’m not crazy about that, but it makes NRG more like an energy trading hedge fund in some respects. I’m not crazy about that either, which brings me to the other reason the stock’s having a great year. Back in May, NRG announced it’s acquiring a handful of natural gas fuel power plants along with some other assets from LS Power.

The deal’s valued at $12 billion, though that’s in cash and stock and the assumption of debt. NRG stock jumped 26% the day the deal was announced, and it’s climbed a bit more since then because Wall Street loves the fact that they’re doubling down on power generation. Also, caused a lot of shorts to cover because they were just in there to believe that it was just a big hedge fund.”

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Disclosure: None. This article is originally published at Insider Monkey.