NRG Energy, Inc. (NRG) is a Houston, Texas-based integrated energy and consumer services company. Valued at a market cap of $33.6 billion, the company produces and sells electricity and also offers a range of home and energy services, including HVAC installation and repair, smart home solutions, energy efficiency tools, and protection plans. In addition to its core energy operations, the company is involved in trading power, natural gas, and related commodities.
This utility company has significantly outperformed the broader market over the past 52 weeks. Shares of NRG have soared 149.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 21.5%. Further, on a YTD basis, the stock is up 90.6%, compared to SPX’s 7.1% return.
Zooming in further, NRG has also notably outpaced the Utilities Select Sector SPDR Fund’s (XLU) 19.6% rise over the past 52 weeks and 14.1% uptick on a YTD basis.
NRG released its Q2 results today, on Aug. 6. The company’s revenue grew 1.2% year-over-year to $6.7 billion. Meanwhile, on the earnings front, its adjusted EPS of $1.73 increased 1.8% from the year-ago quarter. Looking ahead, NRG expects its fiscal 2025 adjusted EPS to be in the range of $6.75 to $7.75.
For the current fiscal year, ending in December, analysts expect NRG’s EPS to grow 17.6% year over year to $7.81. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 11 analysts covering the stock, the consensus rating is a "Strong Buy” which is based on eight “Strong Buy,” and three “Hold” ratings.
The configuration is more bullish than two months ago, with an overall "Moderate Buy” rating, consisting of seven analysts suggesting a “Strong Buy.”
On Jul. 21, Barclays PLC (BCS) analyst Nicholas Campanella maintained a "Buy" rating on NRG and set a price target of $197, indicating a 14.6% potential upside from the current levels.
The mean price target of $174.80 represents a 1.7% premium from NRG’s current price levels, while the Street-high price target of $200 suggests an upside potential of 16.3%.
