4-Star Stocks Poised to Pop: NRG Energy

Updated

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 and see what CAPS investors are saying about the stock right now.

NRGfacts

Headquarters (founded)

Princeton, N.J.

Market Cap

$4.9 billion

Industry

Independent power producers

Trailing-12-Month Revenue

$8.8 billion

Management

CEO David Crane (since 2003)

CFO Kirkland Andrews (since 2011)

Return on Equity (average, past 3 years)

4.2%

Cash/Debt

$1.2 billion / $10.7 billion

Dividend Yield

1.7%

Competitors

AES (NYS: AES)

Calpine (NYS: CPN)

GenOn Energy (NYS: GEN)


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

On CAPS, 97% of the 890 members who have rated NRG believe the stock will outperform the S&P 500 going forward.

About a month ago, one of those Fools, All-Star BlacknGold, succinctly summed up the NRG bull case for our community:

This one is super-duper undervalued. ... The merger with GenOn will only create more value due to synergies (which almost never actually pan out long term) and new market infiltration. NRG is an innovative company that has a huge potential to break the renewable/green energy generation industry wide-open.

If you want market-thumping 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.

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

The article 4-Star Stocks Poised to Pop: NRG Energy originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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 Motley Fool has a disclosure policy.

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