5 Cheap Nuclear Energy Stocks to Buy Amid Energy War

2. NRG Energy, Inc. (NYSE:NRG)

PE Ratio as of September 2: 2.91

NRG Energy, Inc. (NYSE:NRG) operates as an integrated power company in the United States. The company generates electricity from natural gas, coal, oil, solar, nuclear, and battery storage. NRG Energy, Inc. (NYSE:NRG) operates the South Texas Nuclear Generating Station. The company has a strategic partnership with Toshiba Corporation (OTC:TOSYY) by which the two companies jointly develop additional nuclear components at the facility. Shares of NRG Energy, Inc. (NYSE:NRG) have gained 9% over the past six months, as of September 2.

On August 4, NRG Energy, Inc. (NYSE:NRG) announced strong earnings for the fiscal second quarter of 2022. The company reported earnings per share of $2.16 and generated a revenue of $7.28 billion, up 39% year over year.

NRG Energy, Inc. (NYSE:NRG) is trading at a discount to its intrinsic value. As of September 2, the stock has a price-to-earnings ratio of 2.91 and is offering a forward dividend yield of 3.39%, which the company supports with free cash flows of roughly $3 billion.

At the close of Q2 2022, 29 hedge funds held stakes in NRG Energy, Inc. (NYSE:NRG) worth $1.34 billion. This is compared to 31 positions in the previous quarter with stakes worth $1.54 billion.

As of June 30, Pzena Investment Management owns more than 16 million shares of NRG Energy, Inc. (NYSE:NRG) and is the largest shareholder in the company. The investment covers 2.82% of the fund’s 13F portfolio.