3. GenOn Energy ( GEN) generates and wholesales electricity to investor-owned utilities, municipalities and cooperatives.
Analysts polled by Bloomberg expect the company to report loss of 5 cents per share for 2010 fourth quarter, compared to a loss of 71 cents per share in the year-ago period. For the full year, analysts foresee the company reporting earnings per share of 66 cents for 2010, a significant turnaround from a loss of $1.36 per share reported for 2009. The stock has a 21% upside over the next 12 months with a consensus target price of $5.1, according to analysts polled by Bloomberg, whereas ALLETE ( ALE), ITC Holdings ( ITC), Integrys Energy Group ( TEG), Calpine ( CPN), and CenterPoint Energy ( CNP) are likely to return around 4%, 10%, -5%, 9% and 5%, respectively. Of the 18 analysts covering the stock, 7 recommend buying and 11 suggest holding.