NRG Energy (NRG) closed at $160.58 in the latest trading session, marking a -1.28% move from the prior day. This change lagged the S&P 500's 0.52% gain on the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.48%.
The power company's shares have seen an increase of 4.34% over the last month, surpassing the Utilities sector's loss of 0% and the S&P 500's gain of 4.27%.
The investment community will be paying close attention to the earnings performance of NRG Energy in its upcoming release. The company is predicted to post an EPS of $1.07, indicating a 27.7% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $6.31 billion, indicating a 5.26% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.77 per share and a revenue of $28.87 billion, indicating changes of +17.02% and +2.64%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for NRG Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.79% higher. NRG Energy is currently a Zacks Rank #2 (Buy).
Looking at its valuation, NRG Energy is holding a Forward P/E ratio of 20.95. This valuation marks a premium compared to its industry average Forward P/E of 17.78.
Also, we should mention that NRG has a PEG ratio of 1.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power industry had an average PEG ratio of 2.59 as trading concluded yesterday.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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