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NRG Energy, Inc. (NRG) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 1/5Moderate Confidence

Utilities · Utilities - Independent Power Producers

Sell if holding. Engine safety override at $125.00: Quality below floor (3.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.4/10 and A.R:R 4.6:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.84; Below-average business quality; Negative price momentum.

NRG Energy is a competitive electricity and natural gas retailer serving approximately 8 million customers across North America under brands including Reliant, Direct Energy, Green Mountain Energy, and Vivint Smart Home. It sold 154 TWh of electricity and 1,857 MMDth of gas in... Read more

$125.00+43.8% A.UpsideScore 4.4/10#6 of 7 Utilities - Independent Power Producers
QualityF-score4 / 9FCF yield1.63%
IncomeYield1.51%(5y avg 2.65%)Payout197.25%at-risk
Stop $120.44Target $180.42(analyst − 10%)A.R:R 4.6:1
Analyst target$200.47+60.4%17 analysts
$180.42our TP
$125.00price
$200.47mean
$96
$290

Sell if holding. Engine safety override at $125.00: Quality below floor (3.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.4/10 and A.R:R 4.6:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.84; Below-average business quality; Negative price momentum. Chart setup: Death cross, below all MAs, RSI 25, MACD bearish. Score 4.4/10, moderate confidence.

Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: aggressive.

Recent Developments — NRG Energy, Inc.

Material events (past 30 days)

  • Apr 30, 2026 MEDIUM Item 5.02: Robert J. Gaudette formally appointed CEO effective April 30, 2026 (previously appointed President January 6, 2026). Amendment discloses material terms of employment agreement not finalized at original filing. Clean handoff; no disagreement cited.

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
No bull case signals
Risks
Quality below floor (3.1 < 4.0)

Key Metrics

P/E (TTM)136.4
P/E (Fwd)11.0
Mkt Cap$26.5B
EV/EBITDA22.3
Profit Mgn0.7%
ROE6.2%
Rev Growth19.5%
Beta1.31
Dividend1.51%
Rating analysts21

Quality Signals

Piotroski F4/9

Options Flow

P/C1.84bearish
IV51%elevated

Concentration Risks(10-K Item 1A)

  • MEDIUMGeographicTexas generation and retail
    10-K Item 1: 'approximately 12 GW of competitive power generation, primarily in Texas'
  • MEDIUMCommodityPowder River Basin coal
    10-K Item 1: 'NRG purchased approximately 15 million tons of coal in 2025, all of which was Powder River Basin coal'

Material Events(8-K, last 90d)

  • 2026-04-30Item 5.02MEDIUM
    Robert J. Gaudette formally appointed CEO effective April 30, 2026 (previously appointed President January 6, 2026). Amendment discloses material terms of employment agreement not finalized at original filing. Clean handoff; no disagreement cited.
    SEC filing →
  • 2026-04-07Item 5.02LOW
    Director E. Spencer Abraham resigned from Board effective April 3, 2026, for personal reasons. Was not standing for re-election at the April 30, 2026 annual meeting. No disagreement with Company cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

4 floor-breakers

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Obv
1.0
Ma Position
1.5
Volume
2.6
Rsi
3.0
Capitulation risk (RSI 25, below 200MA)Volume distribution (falling OBV)Below 200-MA, MA slope flat

Quality below the gate floor. Component breakdown shows what dragged the score down.static

Gross Margin
0.0
Net Margin
0.4
Roa
1.5
Operating Margin
1.5
Roe
2.1
Current Ratio
3.4
Piotroski F
4.4
Moat
4.9
Fcf Quality
10.0
Excellent cash conversion: 181% FCF/NINo competitive moat

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.0
Revenue Growth
7.4

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Growth Rank
1.7
Value Rank
4.2
Quality Rank
4.5
GatesMomentum 1.6<4.5Death cross (50MA < 200MA)A.R:R 4.6 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Aggressive
RSI
25 · Oversold
20D MA 50D MA 200D MADEATH CROSSSupport $124.16Resistance $160.87

Price Targets

$120
$180
A.Upside+44.3%
A.R:R4.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.1 < 4.0)
! Momentum score 1.6/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-06 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is NRG stock a buy right now?

Sell if holding. Engine safety override at $125.00: Quality below floor (3.1 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 4.4/10 and A.R:R 4.6:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.84; Below-average business quality; Negative price momentum. Chart setup: Death cross, below all MAs, RSI 25, MACD bearish. Prior stop was $120.44. Score 4.4/10, moderate confidence.

What is the NRG stock price target?

Take-profit target: $180.42 (+43.8% upside). Prior stop was $120.44. Stop-loss: $120.44.

What are the risks of investing in NRG?

Quality below floor (3.1 < 4.0).

Is NRG overvalued or undervalued?

NRG Energy, Inc. trades at a P/E of 136.4 (forward 11.0). TrendMatrix value score: 6.2/10. Verdict: Sell.

What do analysts say about NRG?

21 analysts cover NRG with a consensus score of 4.0/5. Average price target: $200.

What does NRG Energy, Inc. do?NRG Energy is a competitive electricity and natural gas retailer serving approximately 8 million customers across North...

NRG Energy is a competitive electricity and natural gas retailer serving approximately 8 million customers across North America under brands including Reliant, Direct Energy, Green Mountain Energy, and Vivint Smart Home. It sold 154 TWh of electricity and 1,857 MMDth of gas in 2025, backed by approximately 12 GW of generation primarily in Texas. Vivint Smart Home serves over 2.4 million customers in all 50 states.

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