NRG Energy (NRG) closed at $109.36 in the latest trading session, marking a +0.95% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.06%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.1%.
Heading into today, shares of the power company had gained 13.79% over the past month, outpacing the Utilities sector's gain of 2.85% and the S&P 500's loss of 4.29% in that time.
The investment community will be paying close attention to the earnings performance of NRG Energy in its upcoming release. It is anticipated that the company will report an EPS of $0.72, marking a 10% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.72 billion, reflecting a 63.43% fall from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.28 per share and revenue of $23.18 billion, which would represent changes of +9.64% and -17.59%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for NRG Energy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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, there's been a 0.05% 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 14.88. For comparison, its industry has an average Forward P/E of 18.07, which means NRG Energy is trading at a discount to the group.
Meanwhile, NRG's PEG ratio is currently 1.32. 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. The Utility - Electric Power industry currently had an average PEG ratio of 2.69 as of yesterday's close.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 40, this industry ranks in the top 17% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.