NRG Energy (NRG) Suffers a Larger Drop Than the General Market: Key Insights

In the latest close session, NRG Energy (NRG) was down 4.68% at $151.27. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%. The stock of power company has risen by 2.35% in the past month, leading the Utilities sector's loss of 1.12% and undershooting the S&P 500's gain of 3.94%.Analysts and investors alike will be keeping a close eye on the performance of NRG Energy in its upcoming earnings disclosure. The company is expected to report EPS of $1.07, down 27.7% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $6.31 billion, showing a 5.26% drop compared to the year-ago quarter. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.77 per share and a revenue of $28.87 billion, indicating changes of +17.02% and +2.64%, respectively, from the former year. Any recent changes to analyst estimates for NRG Energy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system. The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.61% higher. At present, NRG Energy boasts a Zacks Rank of #2 (Buy). Valuation is also important, so investors should note that NRG Energy has a Forward P/E ratio of 20.44 right now. This valuation marks a premium compared to its industry average Forward P/E of 17.81. One should further note that NRG currently holds a PEG ratio of 1.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Utility - Electric Power industry held an average PEG ratio of 2.61. The Utility - Electric Power industry is part of the Utilities sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 29% echelons of all 250+ industries. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks