10 Best Electric Utility Stocks To Invest In

4. NRG Energy, Inc. (NYSE:NRG)  

Number of Hedge Fund Holders: 56

NRG Energy, Inc. (NYSE:NRG) is a major player in the energy sector, involved in the production, sale, and distribution of energy and related services. As one of the largest retail energy providers in the U.S., it serves over 6 million customers. Additionally, the company operates a substantial 13 gigawatts of power generation capacity, including coal, gas, and oil-based plants.

NRG Energy, Inc. (NYSE:NRG) is expected to double its earnings this year, with the Electric Reliability Council of Texas (ERCOT), which manages the state’s electricity grid, forecasting significant growth in power demand. ERCOT anticipates over 60 gigawatts of load growth by 2030.

On September 30, BMO Capital raised its price target for NRG Energy, Inc. (NYSE:NRG) from $88 to $90, while maintaining a Market Perform rating on the stock. This adjustment follows NRG’s announcement of a 5% upward revision to its FY24 EBITDA midpoint outlook, which surpasses both the analyst’s estimate by 2.5% and the consensus estimate by 4.3%. Additionally, the company raised its CFO and FCFbG projections by 5%, with the FCFbG conversion ratio remaining stable at around 55-58%.