NRG Energy, Inc. (NRG), headquartered in Houston, Texas, is an integrated power company in the U.S. With a market cap of $18.35 billion, NRG plays a vital role in the energy sector, providing electricity generation, energy retail, and sustainable energy solutions.
Companies valued at $10 billion or more are typically classified as “large-cap” stocks, and NRG Energy, Inc. is a prime example. The company emphasizes innovation and customer-centric services as key pillars of its strategy, providing tailored energy plans and clean energy options to meet the growing demand for sustainability and efficiency in both residential and commercial sectors.
NRG shares are trading 2.4% below their 52-week high of $90.57, which they hit on Sep. 23. Also, the stock has gained 8.4% over the past three months, outperforming the Dow Jones Industrial Average Index’s ($DOWI) 7.6% returns over the same time frame.
In the longer term, NRG is up 70.9% on a YTD basis, and the shares have gained 128.8% over the past 52 weeks. The Dow has gained 11.8% in 2024 and 24% over the past year.
To confirm its bullish trend, NRG has been trading above its 200-day moving average since late June 2023 and 50-day moving average since early September.
On Aug. 8, NRG reported its Q2 results. The company reported earnings and revenue of $1.48 and $6.66 billion. NRG shares gained 8.2% on the day the results were released.
Highlighting the contrast in performance, rival AES Corporation (AES) has underperformed NRG and DOWI, with a 21.1% gain over the 52 weeks.
Given NRG's recent outperformance compared to the Dow, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from nine analysts in coverage. The mean price target is $88.38, suggesting a marginal premium to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
