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NRG Energy (NRG) Dips More Than Broader Markets: What You Should Know

NRG Energy (NRG) closed the most recent trading day at $33.40, moving -1.94% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 10.47%.

Prior to today's trading, shares of the power company had gained 4.35% over the past month. This has lagged the Utilities sector's gain of 6.65% and outpaced the S&P 500's gain of 2.61% in that time.

Wall Street will be looking for positivity from NRG Energy as it approaches its next earnings report date. This is expected to be May 4, 2023. In that report, analysts expect NRG Energy to post earnings of $0.41 per share. This would mark year-over-year growth of 64%. Our most recent consensus estimate is calling for quarterly revenue of $8.11 billion, up 2.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.34 per share and revenue of $25.69 billion, which would represent changes of +65.65% and -18.56%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for NRG Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.37% lower. NRG Energy currently has a Zacks Rank of #4 (Sell).

In terms of valuation, NRG Energy is currently trading at a Forward P/E ratio of 7.85. This represents a discount compared to its industry's average Forward P/E of 17.86.

Meanwhile, NRG's PEG ratio is currently 1.21. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power industry currently had an average PEG ratio of 3.02 as of yesterday's close.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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

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