NRG Energy (NRG) Declines More Than Market: Some Information for Investors

The latest trading session saw NRG Energy (NRG) ending at $90.92, denoting a -1.68% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.91%. On the other hand, the Dow registered a loss of 1.5%, and the technology-centric Nasdaq decreased by 1.96%.The power company's stock has dropped by 9.93% in the past month, falling short of the Utilities sector's loss of 0.13% and the S&P 500's loss of 7.38%.The investment community will be paying close attention to the earnings performance of NRG Energy in its upcoming release. In that report, analysts expect NRG Energy to post earnings of $0.91 per share. This would mark year-over-year growth of 13.75%. Alongside, our most recent consensus estimate is anticipating revenue of $3.11 billion, indicating a 58.14% downward movement from the same quarter last year.For the full year, the Zacks Consensus Estimates are projecting earnings of $7.28 per share and revenue of $23.03 billion, which would represent changes of +9.64% and -18.15%, respectively, from the prior year.It is also important to note the recent changes to analyst estimates for NRG Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.69% higher. NRG Energy is holding a Zacks Rank of #3 (Hold) right now.Looking at its valuation, NRG Energy is holding a Forward P/E ratio of 12.7. For comparison, its industry has an average Forward P/E of 17.86, which means NRG Energy is trading at a discount to the group.One should further note that NRG currently holds a PEG ratio of 1.12. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NRG's industry had an average PEG ratio of 2.6 as of yesterday's close.The Utility - Electric Power industry is part of the Utilities sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 34% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NRG Energy, Inc. (NRG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks