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In the latest trading session, NRG Energy (NRG) closed at $81.04, marking a +1.55% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.54%. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.65%.
The the stock of power company has fallen by 3.57% in the past month, lagging the Utilities sector's gain of 4.65% and the S&P 500's gain of 4.86%.
Market participants will be closely following the financial results of NRG Energy in its upcoming release. In that report, analysts expect NRG Energy to post earnings of $1.88 per share. This would mark year-over-year growth of 16.05%.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $6 per share and a revenue of $25.19 billion, signifying shifts of +38.89% and -12.61%, respectively, from the last year.
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 company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% decrease. As of now, NRG Energy holds a Zacks Rank of #3 (Hold).
Looking at valuation, NRG Energy is presently trading at a Forward P/E ratio of 13.31. This signifies a discount in comparison to the average Forward P/E of 17.03 for its industry.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 19% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.