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NRG Energy (NRG) Stock Sinks As Market Gains: Here's Why

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NRG Energy (NRG - Free Report) closed the latest trading day at $104.51, indicating a -1.41% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 1%. Meanwhile, the Dow experienced a rise of 0.78%, and the technology-dominated Nasdaq saw an increase of 1.51%.

The the stock of power company has risen by 18.77% in the past month, leading the Utilities sector's loss of 2.02% and the S&P 500's loss of 2.14%.

The investment community will be closely monitoring the performance of NRG Energy in its forthcoming earnings report. The company is forecasted to report an EPS of $1.06, showcasing a 7.02% downward movement from the corresponding quarter of the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NRG Energy. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. Right now, NRG Energy possesses a Zacks Rank of #3 (Hold).

In the context of valuation, NRG Energy is at present trading with a Forward P/E ratio of 14.07. This indicates a discount in contrast to its industry's Forward P/E of 16.52.

We can also see that NRG currently has a PEG ratio of 1.25. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NRG's industry had an average PEG ratio of 2.62 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 84, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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