NRG - NRG Energy: Fundamentals Remain Strong Staying With The Buy Rating Despite Recent Rally

2024-05-16 10:12:25 ET

Summary

• NRG Energy's topline decline in 2024 has been moderate, with strong performance in the Texas segment.
• The company's inclusion of the Smart Home business is expected to drive bottom-line growth in the long term.
• Despite the recent rally, NRG's stock is still at an attractive valuation as compared to its peers, making it a decent buy.

The Thesis

As NRG Energy (NRG) entered 2024, it continued its topline decline, however, at a relatively moderate rate as compared to 2023 as the Texas segment continued its strong performance during the quarter. I am expecting the topline performance to continue to improve with rising energy demand across the region. In addition to this, the company's strong position in most of the regions and a large customer base should benefit the company's sales in the coming years....

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