Yahoo Finance NRG Energy (NRG) Stock Sinks As Market Gains: Here's Why
NRG Energy (NRG) closed the most recent trading day at $78.66, moving -1.08% from the previous trading session. This change lagged the S&P 500's 0.09% gain on the day. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.3%.
The power company's stock has dropped by 4.8% in the past month, falling short of the Utilities sector's loss of 3.42% and the S&P 500's gain of 3.38%.
Investors will be eagerly watching for the performance of NRG Energy in its upcoming earnings disclosure. In that report, analysts expect NRG Energy to post earnings of $1.38 per share. This would mark year-over-year growth of 25.45%. Our most recent consensus estimate is calling for quarterly revenue of $4.59 billion, down 27.75% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $6.63 per share and a revenue of $25.46 billion, demonstrating changes of +53.47% and -11.68%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for NRG Energy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.46% decrease. NRG Energy is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, NRG Energy is presently being traded at a Forward P/E ratio of 12. This signifies a discount in comparison to the average Forward P/E of 14.94 for its industry.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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NRG Energy, Inc. (NRG) : Free Stock Analysis Report
