NRG Energy (NRG) closed the most recent trading day at $149.30, moving -1.18% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.28%.
Shares of the power company have depreciated by 5.9% over the course of the past month, underperforming the Utilities sector's gain of 13.6%, and the S&P 500's gain of 0.6%.
Investors will be eagerly watching for the performance of NRG Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.19, indicating a 21.71% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $7.32 billion, indicating a 7.36% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $8.15 per share and a revenue of $30.3 billion, demonstrating changes of +22.74% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for NRG Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 1.61% fall in the Zacks Consensus EPS estimate. NRG Energy is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note NRG Energy's current valuation metrics, including its Forward P/E ratio of 14.75. This expresses a discount compared to the average Forward P/E of 17.57 of its industry.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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