3. NRG Energy (NRG - Get Report), like GenOn, is an undervalued independent power producer. Its success is similarly dependent upon power demand, which has remained at depressed levels since the recession. Morningstar describes its fleet of coal and nuclear power plants as "ultra low-cost." So, should power demand rebound, which is expected as the economy grows, NRG will see a jump in demand and earnings. It retrofitted plants to burn Powder River Basin coal, a more efficient input, elevating coal-fired margins. Still, Morningstar views this as a risky pick.
5 Turnaround Stocks That Could Double
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