Is the NRG Energy Stock better than the S&P 500?

NRG Energy, Inc, based in Houston, Texas. (NRG) is a US and Canadian energy and home services company. It has a market capitalization of $29.8 billion and operates through Texas, East, West/Service/Other, Vivint Smart Homes and the Corporate Activities segment.

Companies worth more than $10 billion are commonly referred to as “large caps,” and NRG energy meets this standard perfectly. The company operates a diverse portfolio of electricity generating assets, providing energy solutions to residential, commercial and industrial customers. It focuses on innovation and sustainability, providing retail electricity plans, energy management tools and decarbonization services.

NRG Energy is currently 6% below the all-time high of $162.33, recorded on June 3. NRG’s stock has grown 61.2% over the past three months, particularly overcoming the S&P 500 Index ($SPX) 5.4% increase.

In the long term, NRG jumped 69.2% on a YTD basis, while SPX rose 1.7%. Additionally, NRG Energy shares have risen 91% over the past 52 weeks, significantly surpassing SPX’s 9% return over the same time frame.

The stock has been trading above the 50-day moving average since late April, and despite some fluctuations, it has surpassed the 200-day average since last year, highlighting a bullish trend.

NRG Energy shares rose 26.2% after the announcement of first quarter results above forecasts on May 12. The company reported revenue of $8.6 billion, up 15.6% year-on-year, significantly exceeding consensus estimates. Meanwhile, the adjusted EPS rose sharply to 83.6% from the same period last year to $2.68, with analysts’ expectations rising 45.6%.

Compared to its rivals, Vistra Corp. (VST) lags behind NRG stocks on a YTD basis, earning 31.4%. VST stocks have risen 106.8% over the past 52 weeks, surpassing NRG stocks.

Of the 11 analysts who cover NRG stocks, the consensus rating is “strong buy.” The average price target of $160 suggests a modest 4.8% increase from current price levels.

On the date of publication, Aditya Sarawgi had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published barchart.com