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Why the Market Dipped But NRG Energy (NRG) Gained Today

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In the latest market close, NRG Energy (NRG - Free Report) reached $92.65, with a +1.7% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.93%. On the other hand, the Dow registered a loss of 0.41%, and the technology-centric Nasdaq decreased by 1.53%.

Heading into today, shares of the power company had gained 7.16% over the past month, outpacing the Utilities sector's gain of 4.4% and the S&P 500's gain of 2.17% in that time.

The investment community will be closely monitoring the performance of NRG Energy in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.71, marking a 5.56% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $5.56 billion, down 30.07% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.16 per share and revenue of $25.1 billion, which would represent changes of +42.59% and -12.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for NRG Energy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 23.71% higher. Currently, NRG Energy is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, NRG Energy currently has a Forward P/E ratio of 14.79. This expresses a discount compared to the average Forward P/E of 17.91 of its industry.

The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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