In the latest close session, NRG Energy (NRG) was down 1.98% at $100.72. The stock's change was less than the S&P 500's daily loss of 0.76%. Meanwhile, the Dow experienced a drop of 0.68%, and the technology-dominated Nasdaq saw a decrease of 1.13%.
The power company's stock has dropped by 9.56% in the past month, falling short of the Utilities sector's loss of 4.18% and the S&P 500's gain of 1.26%.
The investment community will be closely monitoring the performance of NRG Energy in its forthcoming earnings report. The company is predicted to post an EPS of $3.48, indicating a 26.55% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $7.29 billion, down 4.57% from the year-ago period.
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.
It is also important to note the recent changes to analyst estimates for NRG Energy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Right now, NRG Energy possesses a Zacks Rank of #4 (Sell).
In terms of valuation, NRG Energy is currently trading at a Forward P/E ratio of 11.93. For comparison, its industry has an average Forward P/E of 16.62, which means NRG Energy is trading at a discount to the group.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 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
This article originally published on Zacks Investment Research (zacks.com).