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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
NRG Energy (NRG)
NRG Energy Inc. was founded in 1989 and the company is engaged in the production, sale and delivery of energy and energy products and services to residential, industrial as well as commercial consumers in major competitive power markets in the United States. The company has financial and commercial headquarters in Princeton, NJ and operational headquarters in Houston, TX.
NRG boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of NRG Energy are trading at a forward earnings multiple of 12.8X, as well as a PEG Ratio of 1.1, a Price/Cash Flow ratio of 6X, and a Price/Sales ratio of 0.7X.
Many value investors pay close attention to a company's earnings as well. For NRG, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $7.28 per share for 2025. Per share NRG boasts an average earnings surprise of 12.8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding NRG to their portfolios.
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NRG Energy, Inc. (NRG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).