Is NRG Energy Stock Still Attractive?

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Is NRG Energy Stock Still Attractive? PART 1 OF 5

So What If You Missed NRG Energy’s Recent Rally!

NRG Energy stock blazing

NRG Energy (NRG), the most volatile stock among S&P utilities and one of the most beaten down stocks in the last year, has shown an astonishing run so far this year. It’s important to note that the stock still looks strong after rising 53% since the beginning of 2017. In this part, we’ll discuss why NRG Energy stock might still have a long way to go.

So What If You Missed NRG Energy’s Recent Rally!

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NRG Energy, the largest independent power producer, outwitted peers by a huge margin this year. During the same period, peers Dynegy (DYN) and Calpine (CPN) fell 10% and 6%, respectively. So far, the Utilities Select Sector SPDR ETF (XLU) has risen 6% this year, while the SPDR S&P 500 ETF (SPY) (SPX-INDEX) rose 5%. The utility sector forms 3.2% of SPY.

Is NRG Energy really growing?

The epic rally in NRG Energy stock strengthened after Elliott Management and Bluescape Energy Partners disclosed their stake in the company. Bluescape and Elliott are expecting strategic initiatives that might unlock value for NRG Energy’s shareholders. NRG Energy, with Bluescape and Elliott’s cooperation, is expected to work on key matters like capital structure and allocation, operations and cost excellence, and potential asset de-consolidations and dispositions. As a result, it might be able to attain a growth path in the long term.


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