Here's Why NRG Energy (NRG) is a Strong Momentum Stock

Core Insights - Zacks Premium provides tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score emphasizes identifying undervalued stocks using financial ratios [3] - Growth Score focuses on a company's financial health and future growth potential [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines all three styles to provide a comprehensive assessment of stocks [6] Zacks Rank and Performance - The Zacks Rank utilizes earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - A large number of stocks are rated, with over 800 top-rated options available for investors [9] Stock Selection Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks rated 3 (Hold) should also have A or B Scores to maximize upside potential [10] - Stocks with lower ranks (4 or 5) should be avoided, even if they have high Style Scores, due to declining earnings forecasts [11] Company Spotlight: NRG Energy - NRG Energy Inc. operates in the energy sector, providing energy products and services across the United States [12] - Currently rated 3 (Hold) with a VGM Score of B, NRG has a Momentum Style Score of A and has seen a 2.8% increase in shares over the past four weeks [12][13] - The Zacks Consensus Estimate for NRG's fiscal 2024 earnings has increased by $0.07 to$6.36 per share, with an average earnings surprise of 3.1% [13]