NRG Energy Inc (NRG): Today's Featured Utilities Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NRG Energy ( NRG) pushed the Utilities sector higher today making it today's featured utilities winner. The sector as a whole closed the day down 0.2%. By the end of trading, NRG Energy rose $0.32 (1.1%) to $28.88 on average volume. Throughout the day, 4,165,728 shares of NRG Energy exchanged hands as compared to its average daily volume of 3,529,000 shares. The stock ranged in a price between $28.55-$29.10 after having opened the day at $28.66 as compared to the previous trading day's close of $28.56. Other companies within the Utilities sector that increased today were: Cadiz ( CDZI), up 6.8%, Empresa Distribuidora y Comercializadora No ( EDN), up 3.4%, Summit Midstream Partners ( SMLP), up 2.4% and SJW Corporation ( SJW), up 2.4%.

NRG Energy, Inc., together with its subsidiaries, operates as an integrated wholesale power generation and retail electricity company. The company engages in the ownership, development, construction, expansion, modification, refurbishment, and operation of power generation facilities. NRG Energy has a market cap of $9.3 billion and is part of the utilities industry. Shares are unchanged year to date as of the close of trading on Friday. Currently there are 6 analysts that rate NRG Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates NRG Energy as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, reasonable valuation levels, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Ocean Power Technologies ( OPTT), down 8.3%, TransAlta Corporation ( TAC), down 3.2%, U.S. Geothermal ( HTM), down 2.5% and AES ( AES), down 2.5% , were all laggards within the utilities sector with OGE Energy ( OGE) being today's utilities sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the utilities sector could consider Utilities Select Sector SPDR ( XLU) while those bearish on the utilities sector could consider ProShares UltraShort Utilities ( SDP).

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