In the latest trading session, NRG Energy (NRG) closed at $161.59, marking a -2.75% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. Meanwhile, the Dow experienced a rise of 1.23%, and the technology-dominated Nasdaq saw an increase of 0.69%.
Shares of the power company witnessed a gain of 1.94% over the previous month, beating the performance of the Utilities sector with its loss of 1.93%, and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of NRG Energy in its upcoming earnings disclosure. The company is expected to report EPS of $1.25, down 17.76% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $7.32 billion, showing a 7.36% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.15 per share and a revenue of $30.3 billion, signifying shifts of +22.74% and 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for NRG Energy. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. As of now, NRG Energy holds a Zacks Rank of #3 (Hold).
Digging into valuation, NRG Energy currently has a Forward P/E ratio of 15.96. Its industry sports an average Forward P/E of 16.92, so one might conclude that NRG Energy is trading at a discount comparatively.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NRG Energy, Inc. (NRG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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