NRG Energy (NRG) closed the most recent trading day at $149.11, moving -2.31% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 1.05%, and the technology-dominated Nasdaq saw an increase of 0.56%.
The power company's shares have seen a decrease of 8.14% over the last month, not keeping up with the Utilities sector's gain of 0.58% and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of NRG Energy in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.19, signifying a 21.71% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $7.32 billion, up 7.36% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.12 per share and revenue of $31.14 billion. These totals would mark changes of +22.29% and 0%, respectively, from last year.
Any recent changes to analyst estimates for NRG Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 6.42% lower within the past month. NRG Energy presently features a Zacks Rank of #5 (Strong Sell).
In the context of valuation, NRG Energy is at present trading with a Forward P/E ratio of 15.66. This signifies a discount in comparison to the average Forward P/E of 17.91 for its industry.
The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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