4-Star Stocks Poised to Pop: NRG Energy

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, power plant operator NRG Energy (NYS: NRG) has earned a respected four-star ranking.

With that in mind, let's take a closer look at NRG's business and see what CAPS investors are saying about the stock right now.

NRG facts

Headquarters (founded)Princeton, N.J. (1989)
Market Cap$3.8 billion
IndustryIndependent power producers
Trailing-12-Month Revenue$9.1 billion
ManagementCEO David Crane (since 2003)
CFO Kirkland Andrews (since 2011)
Return on Equity (average, past 3 years)6.9%
Cash/Debt$1.1 billion / $9.9 billion
Projected Dividend Yield2.2%
Competitors

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 729 members who have rated NRG believe the stock will outperform the S&P 500 going forward.  

Just last week, one of those bulls, All-Star InvestWhatWorks, tapped the stock as an attractive future income opportunity:

NRG Energy will soon be a more shareholder-friendly company. NRG will initiate the company's first ever common share dividend. The first dividend payment will be paid in the third quarter of this year. ... The dividend payout ratio is expected to be a very manageable 15%, leaving plenty of room for NRG to increase the dividend in the future.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, NRG may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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