Should You Buy NRG Energy, Inc. (NRG)’s Shares?

We recently published David Tepper Stock Portfolio: 10 Long-Term Stock Picks. NRG Energy, Inc. (NYSE:NRG) is one of the long-term stock picks.

NRG Energy, Inc. (NYSE:NRG) is an independent power production company. It first made an appearance in Appaloosa Management’s 13F holdings in the second quarter of 2017. Back then, the fund had held 1.2 million shares that were worth $21.5 million. As the third quarter closed, both the size and the value of the holding grew significantly. As Q3 ended, Appaloosa held 8.4 million shares that were worth $216 million. The jump came as the average price of the shares jumped to $23.65 during the quarter, over the previous quarter’s $16.77. Between 2019 and the second quarter of 2024, the fund held no shares of NRG Energy, Inc. (NYSE:NRG).

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Morgan Stanley discussed the power producer’s shares on May 21st. It raised the share price target to $162 from $159 and kept an Equal Weight rating on the stock. NRG Energy, Inc. (NYSE:NRG) had reported its first-quarter earnings earlier in May. The results saw the firm grow its revenue to $10.26 billion from the year-ago figure of $8.59 billion. However, NRG Energy, Inc. (NYSE:NRG)’s earnings-per-share of $1.49 missed analyst estimates of $1.78.

While we acknowledge the risk and potential of NRG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NRG and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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