NRG Energy (NRG) closed at $100.85 in the latest trading session, marking a -5.91% move from the prior day. The stock's change was less than the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.
Heading into today, shares of the power company had gained 1.12% over the past month, outpacing the Utilities sector's loss of 1.53% and lagging the S&P 500's gain of 2.06%.
Market participants will be closely following the financial results of NRG Energy in its upcoming release. The company's upcoming EPS is projected at $3.48, signifying a 26.55% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $7.34 billion, indicating a 3.93% decline compared to the corresponding quarter of the prior year.
NRG's full-year Zacks Consensus Estimates are calling for earnings of $8.61 per share and revenue of $36.89 billion. These results would represent year-over-year changes of +6.69% and +20.12%, respectively.
Investors might also notice recent changes to analyst estimates for NRG Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. Right now, NRG Energy possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, NRG Energy is currently exchanging hands at a Forward P/E ratio of 12.45. This indicates a discount in contrast to its industry's Forward P/E of 17.35.
The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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NRG Energy, Inc. (NRG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).