Trade-Ideas LLC identified NRG Energy ( NRG) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified NRG Energy as such a stock due to the following factors:

  • NRG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $104.9 million.
  • NRG has traded 202,600 shares today.
  • NRG is down 3.7% today.
  • NRG was up 6.1% yesterday.

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More details on NRG:

NRG Energy, Inc., together with its subsidiaries, operates as a power company. The stock currently has a dividend yield of 5.3%. Currently there are 5 analysts that rate NRG Energy a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for NRG Energy has been 7.7 million shares per day over the past 30 days. NRG Energy has a market cap of $3.4 billion and is part of the utilities sector and utilities industry. The stock has a beta of 0.91 and a short float of 5.9% with 1.57 days to cover. Shares are down 66.6% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates NRG Energy as a hold. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • NRG ENERGY INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NRG ENERGY INC turned its bottom line around by earning $0.21 versus -$1.22 in the prior year. This year, the market expects an improvement in earnings ($0.38 versus $0.21).
  • Net operating cash flow has increased to $934.00 million or 25.53% when compared to the same quarter last year. Despite an increase in cash flow, NRG ENERGY INC's average is still marginally south of the industry average growth rate of 26.64%.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.3%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Independent Power Producers & Energy Traders industry. The net income has significantly decreased by 60.7% when compared to the same quarter one year ago, falling from $168.00 million to $66.00 million.
  • The gross profit margin for NRG ENERGY INC is rather low; currently it is at 17.24%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.48% trails that of the industry average.

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