NRG Energy (NRG) Suffers a Larger Drop Than the General Market: Key Insights
The most recent trading session ended with NRG Energy (NRG) standing at $89.14, reflecting a -1.04% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 1.01%.
Shares of the power company have appreciated by 11.51% over the course of the past month, outperforming the Utilities sector's loss of 2.2% and the S&P 500's gain of 4.31%.
The investment community will be closely monitoring the performance of NRG Energy in its forthcoming earnings report. The company is expected to report EPS of $1.71, up 5.56% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $5.43 billion, indicating a 31.68% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.16 per share and revenue of $25.1 billion, indicating changes of +42.59% and -12.93%, respectively, compared to the previous year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for NRG Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.18% downward. NRG Energy presently features a Zacks Rank of #3 (Hold).
In terms of valuation, NRG Energy is presently being traded at a Forward P/E ratio of 14.62. This valuation marks a discount compared to its industry's average Forward P/E of 17.45.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 62, placing it within the top 25% of over 250 industries.
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.
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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NRG Energy, Inc. (NRG) : Free Stock Analysis Report