Yahoo Finance NRG Energy (NRG) Gains But Lags Market: What You Should Know
In the latest trading session, NRG Energy (NRG) closed at $35.01, marking a +0.95% move from the previous day. The stock lagged the S&P 500's daily gain of 1.29%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.
Heading into today, shares of the power company had gained 6.25% over the past month, outpacing the Utilities sector's loss of 2.29% and the S&P 500's gain of 5.64% in that time.
Wall Street will be looking for positivity from NRG Energy as it approaches its next earnings report date. The company is expected to report EPS of $1.43, up 247.42% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.67 billion, up 23.09% from the year-ago period.
Any recent changes to analyst estimates for NRG Energy should also be noted by investors. Recent revisions tend to reflect the latest near-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.
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, the Zacks Consensus EPS estimate has moved 1% higher. NRG Energy currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, NRG Energy is currently trading at a Forward P/E ratio of 6.89. For comparison, its industry has an average Forward P/E of 17.5, which means NRG Energy is trading at a discount to the group.
Meanwhile, NRG's PEG ratio is currently 0.57. 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 3.18 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
