Can NRG Energy Electrify Your Portfolio?

With shares of NRG Energy (NYSE:NRG) trading at around $23.45, is NRG an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

NRG Energy has wise management. This is a company that consistently grows and knows how to set itself up for future growth. As you might already know, NRG Energy and GenOn Energy  recently completed a merger. This merger will create the largest power generator in the United States. NRG Energy will now be capable of generating 47,000 megawatts of electricity, and the company will provide energy to almost 40 million homes. NRG Energy will now have two headquarters, one in Princeton, NJ, and the other in Houston, TX. NRG Energy was up 1.4 percent on Friday on the news, but the real questions is: what will happen with the stock price going forward?

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NRG Energy is also expected to grow at an annual rate of 25 percent over the next five years. That might not be a phenomenal growth rate, but keep in mind that we’re talking about the utilities sector. Now let’s take a look at some other important numbers to help us determine NRG Energy’s future direction.