NRG Energy (NRG) Stock Moves -0.59%: What You Should Know
In the latest trading session, NRG Energy (NRG) closed at $33.55, marking a -0.59% move from the previous day. This change was narrower than the S&P 500's 1.3% loss on the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 5.51%.
Prior to today's trading, shares of the power company had gained 6.07% over the past month. This has outpaced the Utilities sector's loss of 1.32% and lagged the S&P 500's gain of 6.41% in that time.
Investors will be hoping for strength from NRG Energy as it approaches its next earnings release. In that report, analysts expect NRG Energy to post earnings of $1.43 per share. This would mark year-over-year growth of 247.42%. Our most recent consensus estimate is calling for quarterly revenue of $8.67 billion, up 23.09% from the year-ago period.
It is also important to note the recent changes to analyst estimates for NRG Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1% higher. NRG Energy is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note NRG Energy's current valuation metrics, including its Forward P/E ratio of 6.71. For comparison, its industry has an average Forward P/E of 17.31, which means NRG Energy is trading at a discount to the group.
It is also worth noting that NRG currently has a PEG ratio of 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NRG's industry had an average PEG ratio of 3.2 as of yesterday's close.
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 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NRG Energy, Inc. (NRG) : Free Stock Analysis Report
