NRG Energy (NRG) closed at $31.75 in the latest trading session, marking a -1.06% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.17%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Coming into today, shares of the power company had lost 3.17% in the past month. In that same time, the Utilities sector gained 0.06%, while the S&P 500 lost 5.25%.
NRG Energy will be looking to display strength as it nears its next earnings release. On that day, NRG Energy is projected to report earnings of $1.35 per share, which would represent year-over-year growth of 239.18%.
Investors should also note any recent changes to analyst estimates for NRG Energy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 33.87% higher. NRG Energy is currently a Zacks Rank #1 (Strong Buy).
Investors should also note NRG Energy's current valuation metrics, including its Forward P/E ratio of 6.44. For comparison, its industry has an average Forward P/E of 17.93, which means NRG Energy is trading at a discount to the group.
It is also worth noting that NRG currently has a PEG ratio of 0.53. 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 3.19 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 86, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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