NRG Energy’s Returns Beat Peers in the Last Few Years



Total returns

NRG Energy (NRG) stock returned ~240% in the last three years and outperformed its peers by a wide margin. The stock rose due to activist shareholders’ involvement in the company and the transformation plan. AES (AES) and utilities (XLU) on average returned 80% and 30%, respectively, in the last three years.

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Transformation plan

NRG Energy’s transformation plan focused on restructuring the company’s operations and cutting down the total debt. The company sold non-core businesses like Renewables and NRG Yield last year as a part of the plan. NRG Energy appears to be on track to meet its cost-saving targets, which will likely continue to have a positive impact on its profits in upcoming quarters.

AES’s total returns over the past 12 months were 67%. AES offers a dividend yield of 3%, which is in line with peers’ average. NRG Energy pays trivial dividends. To learn more, read Why AES’s Dividend Profile Looks Attractive.


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