Why NRG Energy (NRG) is a Top Value Stock for the Long-Term

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding in stock selection for potential market outperformance [2] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [3] - Growth Score evaluates stocks based on projected earnings and sales growth [4] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points [5] - VGM Score combines the three Style Scores to highlight stocks with attractive value, growth, and momentum [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988 [7] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [9] - Stocks with lower ranks (4 or 5) may still have good Style Scores but are likely to face declining earnings forecasts [10] Company Spotlight: NRG Energy - NRG Energy Inc. operates in the energy sector, providing energy products and services across the U.S. [11] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - NRG's Value Style Score is B, supported by a forward P/E ratio of 19.47, making it appealing to value investors [12] - Recent upward revision of earnings estimates for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.04 to $7.81 per share, highlights positive momentum [12] - NRG has an average earnings surprise of +26.2%, reinforcing its attractiveness to investors [12]