NRG Energy (NRG) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional stock ratings based on value, growth, and momentum [2][7] Zacks Style Scores - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [3] - The Value Score identifies attractive stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score focuses on a company's future prospects, analyzing earnings, sales, and cash flow for sustainable growth [4] - The Momentum Score helps investors capitalize on price trends by assessing recent price changes and earnings estimate shifts [5] - The VGM Score combines all three Style Scores, offering a comprehensive indicator for stock selection [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to aid in portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] - There are over 800 top-rated stocks available, making the selection process potentially overwhelming for investors [9] Investment 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 with a 3 (Hold) rank should also have Style Scores of A or B to maximize upside potential [10] - Stocks rated 4 (Sell) or 5 (Strong Sell) should be avoided, even if they have high Style Scores, due to negative earnings forecasts [11] Company Spotlight: NRG Energy - NRG Energy Inc. is involved in the production, sale, and delivery of energy products and services across the U.S. [12] - The company holds a Zacks Rank of 3 (Hold) and has a VGM Score of B [12] - NRG is positioned as a growth investment with a Growth Style Score of B, forecasting a year-over-year earnings growth of 22.7% for the current fiscal year [13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.12 to $8.15 per share [13] - NRG has an average earnings surprise of +34.1%, making it a strong candidate for investors [13]