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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.