Headquartered in Houston, Texas, NRG Energy, Inc. (NRG) is an integrated power company in the U.S. With a market cap of $18.7 billion, NRG provides comprehensive energy solutions that include power generation, retail energy services, and sustainable energy innovations. NRG is committed to delivering reliable energy to millions of customers while advancing towards a cleaner, more resilient energy future.
Shares of the utilities giant outperformed the broader market considerably over the past year. The stock gained 93.7% over this time frame, while the S&P 500 Index ($SPX) rallied nearly 32.3%. In 2024 alone, NRG stock is up 77.3%, surpassing SPX’s 24.7% rise on a YTD basis.
Zooming in further, NRG’s outperformance is even more pronounced compared to the Utilities Select Sector SPDR Fund (XLU). The exchange-traded fund has gained about 26% over the past year. Moreover, NRG’s gains on a YTD basis outshine the ETF’s 23.3% returns over the same time frame.
NRG Energy's shares declined slightly following its Q3 earnings results on Nov. 8. Its revenue of $7.22 billion dipped 9.1% year over year, while the company’s adjusted EPS of $1.85 fell short of the $2.05 consensus, though it marked a 14.2% year-over-year increase. NRG raised its 2024 adjusted EBITDA guidance to $3.66 billion to $3.81 billion range, up $130 million due to a recasting of customer acquisition costs.
For the current fiscal year, ending in December, analysts expect NRG’s EPS to grow 47% to $6.35 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in two of the last four quarters while missing the forecast on two other occasions.
Among the nine analysts covering NRG stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and five “Holds.”
This configuration has been consistent over the past month.
On Nov. 11, Wells Fargo (WFC) raised NRG Energy's price target to $140 from $130, highlighting strong growth potential and upside from core services and emerging opportunities.
The mean price target of $100 represents a 9.1% premium to NRG’s current price levels. The Street-high price target of $140 suggests an upside potential of 52.8%.
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