In the latest market close, NRG Energy (NRG) reached $88.73, with a +1.37% movement compared to the previous day. This change outpaced the S&P 500's 0.27% gain on the day. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw an increase of 0.26%.
The the stock of power company has fallen by 4.05% in the past month, lagging the Utilities sector's loss of 2.82% and the S&P 500's gain of 2%.
The investment community will be closely monitoring the performance of NRG Energy in its forthcoming earnings report. In that report, analysts expect NRG Energy to post earnings of $1.71 per share. This would mark year-over-year growth of 5.56%. Alongside, our most recent consensus estimate is anticipating revenue of $5.43 billion, indicating a 31.68% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $6.09 per share and a revenue of $25.1 billion, demonstrating changes of +40.97% and -12.93%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for NRG Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 10.57% rise in the Zacks Consensus EPS estimate. NRG Energy is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, NRG Energy is at present trading with a Forward P/E ratio of 14.38. This expresses a discount compared to the average Forward P/E of 17.24 of its industry.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 35% of over 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
