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NRG Energy (NRG) Stock Drops Despite Market Gains: Important Facts to Note

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NRG Energy (NRG - Free Report) closed the latest trading day at $104.66, indicating a -0.49% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.36%.

The power company's stock has climbed by 8.21% in the past month, exceeding the Utilities sector's gain of 4.55% and the S&P 500's gain of 4.19%.

Market participants will be closely following the financial results of NRG Energy in its upcoming release. The company plans to announce its earnings on February 26, 2025. The company is expected to report EPS of $1.05, down 7.89% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NRG Energy. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. NRG Energy is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that NRG Energy has a Forward P/E ratio of 14.02 right now. This expresses a discount compared to the average Forward P/E of 17.19 of its industry.

Investors should also note that NRG has a PEG ratio of 1.24 right now. 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 industry currently had an average PEG ratio of 2.54 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 141, positioning it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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