Summary
- NRG Energy has dramatically outperformed NextEra Energy and the S&P 500 over the past five years.
- Last week, NRG received all approvals…
Summary
- NRG Energy has dramatically outperformed NextEra Energy and the S&P 500 over the past five years.
- Last week, NRG received all approvals needed to close the LS Power acquisition and did exactly that last Friday.
- Today, I will provide an advanced peek at NRG’s Q4 earnings expectations (due out on Feb. 27) and discuss the debt load taken on for the LS Power acquisition.
- Lastly, I will compare NRG with America’s largest utility company - NextEra - to see which company might be the better performer over the coming 12 months.
- Conclusion: Sell NRG, Buy NEE.
An engineering depiction of utility scale gas turbine blades inside energy generation machinery and the precision manufacturing required.
primeimages/iStock via Getty Images
Many investors might be surprised that a relatively low-profile utility company like NRG Energy (NRG) has not only dramatically outperformed its arguably flashier peer NextEra Energy (NEE) over the past five years (see chart below) but has also tripled
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**Analyst’s Disclosure: **I/we have a beneficial long position in the shares of NEE, VOO, GOOG, CVX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am an electronics engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.
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