Latest news with #NRGEnergy
Yahoo
7 days ago
- Health
- Yahoo
As Trump administration eases EPA regulations, Houston could pay a price
Washington — Since President Trump took office in January, his Environmental Protection Agency has been both slashing and reconsidering dozens of rules designed to fight pollution. The White House is also firing many of the EPA staffers who enforce the rules that remain. This week, CBS News visited a Houston neighborhood that's near an NRG Energy coal-fired power plant, the largest in Texas. When CBS News visited the same neighborhood in December, Mr. Trump had just been elected to a second term, promising the energy industry that he would roll back environmental regulations that protect air quality. "I think of pollution as a silent and invisible killer," Dr. Winston Liaw, chair of the Health Systems and Population Health Sciences Department at the University of Houston, told CBS News. Liaw treats patients who run a higher risk of lung disease, asthma and heart attacks due to emissions from oil refineries, chemical plants and coal plants in the Houston area. He explained how the air in Houston can impact human health. "There are these tiny particles, and they're so small that they bypass a lot of our defenses," Liaw said. "And then they start injuring all sorts of tissue in our body." A 2018 study from Rice University found that pollution from the NRG plant contributes to 177 premature deaths per year. In April, the Trump administration gave 68 plants — including the NRG plant in the Rice study — a two-year exemption from complying with federal regulations intended to lower mercury emissions, a powerful toxin that can affect the brain. CBS News analyzed the Trump administration's exemptions and found that nearly 65% of these plants are located within 3 miles of low-income, minority communities. "Bottom line is, who's more at risk are poor people," said Ben Jealous, executive director of the Sierra Club, an environmental advocacy group that has led an effort to try and close almost two-thirds of the nation's coal plants. "When you start increasing production of coal-fired power plants, you're going to kill more people, and you're going to cause more heart attacks, and you're going to cause more asthma attacks," Jealous said. In a statement provided to CBS News, NRG Energy said its "coal units operate in compliance with the current Mercury Air Toxics Standards (MATS) and will operate in compliance with any future MATS requirements." In a separate statement, the Trump administration said Biden-era coal plant regulations "stacked burdensome regulations on top of the longstanding Mercury and Air Toxics Standards, raising the risk of coal-fired plants shutting down – which would eliminate thousands of jobs, strain our electrical grid, and undermine our national security by leaving America vulnerable to electricity shortages." Jealous argues that coal is not a more reliable energy source than renewable energies. "The argument that coal gives you more reliable energy isn't valid," Jealous said. "Solar, wind and batteries gives you the most reliable, the most resilient grid." More importantly, he said, for the people of Houston and across the country, renewable energy means less pollution. January 6 defendant refuses Trump's pardon Sneak peek: Where is Jermain Charlo? Baldwin grills McMahon on unallocated funds for students, schools, approved by Congress
Yahoo
30-05-2025
- Business
- Yahoo
1 Cash-Heavy Stock with Exciting Potential and 2 to Avoid
A cash-heavy balance sheet is often a sign of strength, but not always. Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow. Not all businesses with cash are winners, and that's why we built StockStory - to help you separate the good from the bad. That said, here is one company with a net cash position that balances growth with stability and two with hidden risks. Net Cash Position: $80.24 million (15.2% of Market Cap) Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States. Why Does EVGO Worry Us? Historically negative EPS raises concerns for risk-averse investors and makes its earnings potential harder to gauge Cash-burning history makes us doubt the long-term viability of its business model Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution EVgo is trading at $3.95 per share, or 33.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why EVGO doesn't pass our bar. Net Cash Position: $385.6 million (10.9% of Market Cap) With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE:KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies. Why Do We Think KFY Will Underperform? Sales tumbled by 2% annually over the last two years, showing market trends are working against its favor during this cycle Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 1.4% Earnings per share decreased by more than its revenue over the last two years, showing each sale was less profitable At $68.29 per share, Korn Ferry trades at 13.3x forward P/E. Dive into our free research report to see why there are better opportunities than KFY. Net Cash Position: $744,000 (0.1% of Market Cap) Established in 1901, Limbach (NASDAQ: LMB) provides integrated building systems solutions, including mechanical, electrical, and plumbing services. Why Is LMB on Our Radar? Operating margin expansion of 5.3 percentage points over the last five years shows the company optimized its expenses Incremental sales over the last two years have been highly profitable as its earnings per share increased by 53.3% annually, topping its revenue gains Industry-leading 22.9% return on capital demonstrates management's skill in finding high-return investments, and its rising returns show it's making even more lucrative bets Limbach's stock price of $127.50 implies a valuation ratio of 30.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
29-05-2025
- Business
- Yahoo
Here Are the Top-Performing Stocks From the S&P 500 This Year
The stock market has been one heck of a seesaw in 2025. A bit over a month ago, the S&P 500 was down more than 15% on the year and narrowly avoided an official bear market (in fact, it closed down 19% from its highs and touched bear territory intraday). The Nasdaq officially entered one. By mid-May, the S&P 500 soared back into the green for 2025. It was the fastest recovery in over 40 years, with the index erasing its 15% year-to-date loss in less than six weeks. It's a good reminder that one of the worst mistakes we can make is to panic sell during times of market stress. The market is now telling us two things. First, it's to expect a quicker-than-anticipated resolution to the tariff issues and trade wars. And alongside that, the assumption is that inflation remains under control, which will allow the Fed to resume the rate-cutting process. This should provide a further tailwind to equity prices. An underlying downward trend in inflation combined with better-than-expected corporate earnings also helped propel the S&P 500 back near record highs. There's no doubt that a strong 2024 was met with heavy selling early this year. Markets came under pressure as volatility increased amid uncertainty surrounding President Trump's tariffs. We also saw defensive sectors take the lead as market participants altered positioning. Even after this latest rally, two of the top three S&P sectors this year include utilities and consumer staples. These are two sectors we'd expect to hold up relatively well during corrections and bear markets. But things have quickly changed course with the technology sector roaring back. Unique catalysts such as the artificial intelligence theme resulted in the more aggressive pockets of the market returning to the forefront. The information technology sector is the leading sector over the past month; this is aligned with the secular bull thesis, as we'd expect tech stocks to outperform in a bull market. The media-hyped concentration risk at the very top of the cap-weighted S&P 500 would have us believe that investors are becoming increasingly reliant on a smaller number of companies to lead their portfolios. Yet none of the top 25 S&P 500 constituents (by index weight) are included in the best 3 performers in 2025. The evidence is now pointing to the notion that this correction in the S&P 500 has come to an abrupt end. Let's take a look at the top three performers so far this year from the blue-chip index. An integrated power company operating in the United States, NRG Energy NRG is leading the pack in 2025. Renewed strength in rate-sensitive utilities provides a durable backing for this industry leader. NRG Energy is involved in producing and selling electricity and related services to residential, commercial, industrial, and wholesale customers. The company generates electricity using natural gas, coal, oil, solar, nuclear, and battery storage. NRG stock is displaying relative strength, recently surging to 52-week highs. Shares have already advanced more than 70% this year: Image Source: StockCharts The utility provider has put together an impressive earnings history, surpassing earnings estimates in three of the last four quarters. Just a few weeks ago, the company reported first-quarter earnings of $2.62/share, a 45.6% surprise over the $1.80/share consensus estimate. NRG shares received a boost as analysts covering the company have been increasing their earnings estimates lately. For the full year, earnings estimates have risen 0.82% in the past 60 days. The 2025 Zacks Consensus EPS Estimate now stands at $7.34 per share, reflecting a potential growth rate of 10.5% relative to the prior year. Image Source: Zacks Investment Research A leading provider of artificial intelligence systems, Palantir PLTR took the top spot in 2024 (after being added to the S&P 500 in September) and has followed through this year. The company has benefitted from numerous strategic partnerships, including a recent collaboration with Bain & Company to integrate advanced AI solutions to diverse industries. Last year, Palantir announced that it extended its long-standing partnership with the U.S. Army, further aiding the delivery of its Army Vantage capability used to perform essential missions and enable quicker decision-making. The intelligence software and data analytics provider generates more than 50% of its revenue from government agencies. Late last year, the federal government issued the company a higher rating for secure cloud computing services, which should accelerate the handling of extremely sensitive data as part of Palantir's cloud offering. Following the latest correction, PLTR shares have climbed back to 52-week highs and are up more than 60% in 2025: Image Source: StockCharts Analysts covering PLTR remain bullish and have increased their second-quarter EPS estimates by 7.69% in the past 60 days. The Q2 Zacks Consensus Estimate now stands at 14 cents per share, reflecting a 55.6% potential growth rate versus the year-ago period. Image Source: Zacks Investment Research Rounding out the top 3 in terms of S&P 500 returns so far this year is defense giant Howmet Aerospace HWM. The company is a global provider of advanced engineered solutions for the aerospace and transportation industries. A Zacks Rank #1 (Strong Buy), Howmet stock has been a steady performer, surging more than 50% year-to-date: Image Source: StockCharts Howmet has built an incredible track record in terms of surpassing earnings estimates; the company hasn't missed the EPS mark since 2020. The aerospace and defense leader delivered a trailing four-quarter average earnings surprise of 8.9%. Howmet continues to witness rising earnings estimates as the company benefits from momentum in the commercial aerospace market. Analysts covering HWM increased their full-year EPS estimates by 6.13% in the past 60 days. The 2025 Zacks Consensus Estimate now stands at $3.46/share, translating to a healthy 28.6% growth rate versus last year. Image Source: Zacks Investment Research These three market leaders are showing strong growth metrics and are poised to continue their outperformance. While defensive stocks led the charge in the first few months of 2025, other sectors like technology have resumed the driver's seat and are playing a big part in the S&P 500's resurgence. The bulls are hoping that this V-shaped recovery will be followed by more strength in the months to come. Studying the top performers is a great way to gain perspective. Be sure to explore all that Zacks has to offer so you're ready to take advantage of the next leaders. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NRG Energy, Inc. (NRG) : Free Stock Analysis Report Howmet Aerospace Inc. (HWM) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
NRG's Stock Is a Top Gainer. How Does It Really Make Money?
NRG Energy, once viewed as a boring retail energy supplier, suddenly is one of America's hottest stocks. Investors see a power producer expanding rapidly to tap surging demand driven by artificial intelligence. But NRG also is a large derivatives trader. It has volatile earnings, a weak balance sheet and in some ways resembles a commodities hedge fund that also owns power plants. About $5.2 billion of NRG's assets were derivative contracts as of March 31, compared with $2.2 billion of property, plant and equipment. The Fed Forecasts Stagflation Paramount Has Offered $15 Million to Settle CBS Lawsuit. Trump Wants More. The 'TACO Trade' That Has Trump Fuming How Ozempic's Maker Lost Its Grip on the Obesity Market It Created E.l.f. Buys Hailey Bieber's Rhode Cosmetics Brand in $1 Billion Deal Much of NRG's earnings are of the noncash, mark-to-market variety, tied mainly to commodity prices, including natural gas and power. Those aren't visible on the face of NRG's income statement, but they are disclosed in the footnotes. NRG's unrealized, mark-to-market gains on derivatives last quarter were $512 million, equivalent to 52% of pretax profit. The quarter before that, they were $506 million, or 71% of pretax profit. The fluctuations also swerve the other way. For the third quarter of 2024, NRG reported a $1 billion pretax loss, driven by even bigger mark-to-market losses. Now NRG has agreed to buy many power plants from closely held LS Power, using new debt and its own richly valued stock to pay for them. NRG's shares rose 26% when the deal was announced on May 12 along with first-quarter earnings. It is now the S&P 500's top performer this year, up 73%, giving it about a $31 billion stock-market value. While the acquisition has excited Wall Street, it also highlights the fragility of NRG's current asset-light business model. NRG said the deal would double its generation capacity and immediately boost its earnings when it closes in early 2026. NRG said it would pay $6.4 billion of cash, plus stock that was worth $2.9 billion at the time of the announcement. Since then, the value of the stock NRG plans to issue has risen by almost $900 million. NRG had only $1.4 billion of cash as of March 31. Hence, it will need to borrow to fund the cash portion. But it is hard to evaluate what NRG is getting. NRG said it would assume $3.2 billion of net debt, but few other details are public because LS Power's financial statements aren't disclosed. A comparison of NRG and other power companies is instructive. NRG in its proxy identified its peer group as the 21 companies in the Philadelphia Utility Sector Index, which includes NextEra Energy and Duke Energy. NRG's net derivative assets were 61% of its book value as of March 31. The average for the peer group was less than 1%, according to a Wall Street Journal analysis. Property, plant and equipment represented 9% of NRG's total assets, compared with 72% for the peer group. Put another way, NRG, which isn't in the utilities index, has a much different profile than the companies that are. It looks more like a risky energy trader. Book value was a relative sliver at $2.1 billion, or 9% of assets, while the index's average ratio was 25%. NRG's tangible equity was negative, owing to large amounts of goodwill and other intangible assets from an earlier string of acquisitions. S&P and Moody's have junk credit ratings on NRG, while every company in the utilities index is investment-grade. Moody's in a May 15 report on NRG cited its 'opaque and volatile trading operation' and 'exposure to volatile energy commodities' among its credit risks. NRG has a highly valued stock, though. It trades for about 14 times book value and 24 times trailing earnings. The average for the index is about two times book and 21 times earnings. NRG often draws comparisons with Vistra, another junk-rated power company, and Constellation Energy, which is in the utility index. Both have hot stocks fueled by acquisitions. Vistra may be a closer match. It has negative tangible equity, and its shares trade for 24 times book value and 25 times trailing earnings. Like NRG, Vistra has a sizable derivatives book that is prone to volatility, but it is smaller than NRG's as a percentage of total assets and has a negative net value. Vistra also has more hard assets. Property, plant and equipment were 46% of total assets as of March 31. NRG says it uses derivatives to manage the commodity-price risk of its businesses. But it doesn't treat any of its derivatives as hedges under the accounting rules. That means the contracts are directional bets, mainly on commodity prices going one way or another. Changes in their value can have large impacts on quarterly earnings. Investors arguably shouldn't pay a multiple of earnings for mark-to-market gains such as those, which are volatile and unpredictable. The deal with LS Power is understandable, as it could add more hard assets to NRG's balance sheet. Still, there isn't much for investors to go on given the lack of details about LS Power's finances. And it isn't often that a company can announce that it is making a $9 billion acquisition and get almost an $8 billion pop in its stock-market value within a week. That leaves investors with an expensive stock in an opaque, highly levered company riding the AI wave. It could be a volatile ride. Write to Jonathan Weil at Trump Pledged 'No Tax on Social Security.' The Tax Bill Says Otherwise. We Made a Film With AI. You'll Be Blown Away—and Freaked Out. Elon Musk Tried to Block Sam Altman's Big AI Deal in the Middle East Nvidia's Business Is Booming Despite Being Shut Out of China General Motors CEO Defends Trump Auto Tariffs
Yahoo
25-05-2025
- Business
- Yahoo
GE Vernova Backlog Hits 50 GW; Wells Fargo Sees 2028 Margin Upside
On May 20, Wells Fargo reaffirmed its Overweight rating and price target of $474 for GE Vernova Inc. (NYSE:GEV). According to the firm's analysis, GEV's heavy-duty gas turbine (HDGT) products are in high demand, and the company is expected to sell out of its entire capacity this year. Wells Fargo asserts that, due in part to recent agreements with Duke Energy and NRG Energy totaling about 5.5 GW, GEV has secured a total of 50 GW in orders and slot reservation agreements scheduled after Q1 2025. Consequently, roughly 43.3 GW of GEV's 55.5 GW backlog is expected to be delivered between 2026 and 2028. Additionally, the firm anticipates that by the end of the third quarter of 2025, GE Vernova Inc. (NYSE:GEV) will have secured an additional 12.7 GW of orders. Based on industry data and management commentary, this estimate indicates that the majority of the slots for 2026 and 2027 have already been reserved, alongside more than half of the capacity for 2028. Moreover, Wells Fargo believes that GEV may be able to boost 2028 Power EBITDA margins above the projected 16.9% if it can book the remaining 12.7 GW at high prices over the next five months. The firm determines that its price target would increase by about $8 per share for every 1% increase in the Power Segment margin post-2028. While we acknowledge the potential of GEV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GEV and that has 100x upside potential, check out our report about the cheapest AI stock. Read More: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
