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NRG Energy (NRG) Outpaces Stock Market Gains: What You Should Know

NRG Energy (NRG) closed the most recent trading day at $31.49, moving +1.55% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.56%. Elsewhere, the Dow gained 0.41%, while the tech-heavy Nasdaq added 1.35%.

Heading into today, shares of the power company had lost 7.46% over the past month, lagging the Utilities sector's loss of 3.3% and the S&P 500's loss of 1.48% in that time.

NRG Energy will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.08, down 132% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.97 billion, up 0.91% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.54 per share and revenue of $25.76 billion. These totals would mark changes of +73.28% and -18.34%, respectively, from last year.

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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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 9.66% lower. NRG Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note NRG Energy's current valuation metrics, including its Forward P/E ratio of 6.84. Its industry sports an average Forward P/E of 16.31, so we one might conclude that NRG Energy is trading at a discount comparatively.

Meanwhile, NRG's PEG ratio is currently 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 2.75 at yesterday's closing price.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

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 Report

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