Latest news with #NRG
Yahoo
7 hours ago
- Business
- Yahoo
NRG Energy vs. Palantir: Which of These Top-Performing S&P 500 Stocks is the Better Buy
NRG Energy's utility makeover and strategic acquisitions fuel 2025 gains yet derivatives risks remain. Palantir's AI software boom has delivered stunning profits but carries a sky-high valuation. 10 stocks we like better than Palantir Technologies › As the S&P 500 moves more cautiously in 2025, two companies have distinguished themselves with impressive gains. Palantir (NASDAQ: PLTR), up over 90% on surging AI adoption, and NRG Energy (NYSE: NRG), up roughly 60% (at the time of writing), now sit atop the index as two of its best performers. Both have delivered blockbuster returns, punched above consensus earnings, and unfurled sails to catch the AI tailwinds. But as we head into the back half of 2025, when markets often test even the hottest stories, which of these high-flyers has more juice in the tank? Let's pull back the curtain and see. NRG's old-school power plants are firing on all cylinders. In Q1, revenue jumped 15% to $8.6 billion -- well above the 10% rise across the utility sector -- as wholesale power prices spiked and retail margins widened. Net income popped 47% to $750 million, and earnings per share (EPS) jumped 83.6% from $1.46 to $2.68, more than triple utility peer Duke Energy's own 22% gain. That kind of upside doesn't come around often in utilities, as the chart below shows. All of that growth is certainly impressive. But a closer look at its business model may hint at some hidden risks. As the Wall Street Journal recently pointed out, only about 9 % of NRG's $25 billion in assets sits in actual power plants, while a staggering 21% lives in $5.2 billion of commodity derivatives. That's high, especially when you consider that many members of the Philadelphia Utility Sector Index hold under 1% of their net assets in derivatives . While NRG is likely using them to hedge energy prices, the heavy exposure could lead to a painful loss on the bottom line if price moves exceed the company's hedged positions. But here's an interesting fact: NRG has recently agreed to buy a portfolio of natural gas generation facilities and a virtual-power-plant platform from LS Power for $12 billion. Once closed, the deal will more than double NRG's hard-asset base, which should dilute its derivatives line with physical plants. It won't erase volatility all at once, but it will help move NRG back toward a classic utility profile. Looking ahead, NRG's transformative $12 billion acquisition could help it capture surging electricity demands from AI data centers, which explains why management is expecting a 14% compound annual EPS growth rate over the next five years . That kind of growth will also support its dividend, which is currently at 1.15%. With new capacity on the horizon and dividends set to climb, there's real upside if the LS integration runs smoothly. Like NRG, Palantir is riding the AI wave. But while NRG is selling energy that powers data centers, Palantir is selling powerful software that turns that data into battlefield tactics and boardroom decisions. In Q1, Palantir cranked total revenue up by 39% to $884 million, powered by a 55% leap in U.S. sales and a 71% explosion in commercial contracts. This marks the highest quarterly revenue growth on record and its strongest Q1 growth in four years. The same momentum delivered a blistering 44% adjusted operating margin -- nearly double the roughly 23% operating margin for the tech sector -- and $370 million in free cash flow. PLTR data by YCharts Government work still underpins the base, but enterprise bookings now outpace defense deals, with 139 contracts north of $1 million inked this quarter alone. This shift toward enterprise, which close faster, scale more predictably, and carry more recurring revenue, signals that Palantir is building a more stable, higher-margin business less reliant on the ebb and flow of government spending. While the headlines for Palantir have been growth, growth, growth, its valuation is a bit sobering. Palantir's stock has a forward price-to-earnings ratio (P/E) exceeding 230, about eight times the tech sector's at 29, making it one of the more richly valued stocks you'll find. The premium baked into that price demands near perfect performance every quarter. Miss one large contract or see a competitor undercut pricing, and the valuation could hit a speed bump. At the same time, AI's incoming tidal wave could add about $15.7 trillion to the global economy by 2030, more than the combined GDP of China and India. Palantir is already at the epicenter, with management forecasting $3.9 billion in full-year 2025 revenue, a 36% improvement from last year. For long-term investors, the only risk is that today's price already bakes in the expected AI boom, leaving scant room for upside. This is really a tough call. But if I had to pick just one, I'd go with NRG. On a price-to-earnings basis, NRG's roughly 20 times forward multiple is only a notch above the S&P 500 Utilities Index's norm of 18 times -- hardly egregious for a utility that's reinventing itself for an AI-powered world. And with the LS Power acquisition in the works, NRG seems primed for durable upside without nail-biting risk. But don't get me wrong. I love what Palantir has done over the last half decade. But that high valuation – yikes. If you can stomach that valuation, Palantir could still spark fireworks. But if you want more upside, NRG might be the safer charge. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool has a disclosure policy. NRG Energy vs. Palantir: Which of These Top-Performing S&P 500 Stocks is the Better Buy was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
NRG Energy (NRG): A Bull Case Theory
We came across a bullish thesis on NRG Energy on Pacific Northwest Edge's Substack by David. As of 27ᵗʰ June, NRG Energy's share was trading at $161.54. NRG's trailing and forward P/E were 25.82 and 23.58 respectively according to Yahoo Finance. An aerial view of the energy producing facility, highlighting its potential of providing utilities to the public. NRG Energy, a major retail energy provider in the U.S., serves 6 million customers and has expanded its home services footprint by acquiring Vivint Smart Home in 2023, adding 2 million customers. The company is also one of the largest independent power producers in the U.S., with 13 gigawatts of power generation capacity from coal and natural gas, primarily in Texas. With the acquisition of LS Power, NRG will gain 13 gigawatts of gas-fired power plants, mostly in the eastern U.S., potentially enabling it to power 19.5% of U.S. households. This move is significant as NRG's power generation capabilities rely on natural gas and coal, which are still the backbone of the power grid, unlike wind and solar energy, which can be unreliable. The company's acquisition of LS Power is expected to be a defining moment, but its market cap of $31 billion and a P/E of 26 already price in much of the future growth. NRG has a history of returning capital to shareholders aggressively, with a plan to buy back stock at a rate of $1 billion a year. However, the company's 2023 performance shows concerning signs, including negative cash from operations and free cash flow, despite which it still bought back $1.17 billion in common stock and paid out $381 million in dividends. The issuance of $635 million in preferred stock to fund these activities is also seen as a negative point, as it resembles taking on debt to return capital to shareholders. Despite these concerns, NRG is set to become a crucial player in the U.S. power grid at a time when demand for electricity is expected to increase due to AI. The company's current stock performance and valuation present an interesting investment opportunity, although it may not be perfect due to the noted concerns about its financial management and capital allocation decisions. The potential for NRG to become a backbone of the power grid, combined with its aggressive capital return strategy, makes it a stock worth considering, but with caution due to the risks involved. Previously we covered a bullish thesis on Vistra Corp. by desperate-pleasures in March 2025, which highlighted the company's strategic positioning to meet AI-driven energy demand, strong cash flow, and undervaluation due to market mispricing. The company's stock price has appreciated approximately by 53.73% since our coverage. This is because the thesis played out. The thesis still stands as AI energy demand continues to rise. David shares a similar view but emphasizes NRG's inorganic growth via acquisitions. NRG isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. 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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey.
Daily Mirror
5 days ago
- Daily Mirror
Irish mum goes missing in Tenerife as police bring in dogs for desperate search
Alarms were raised when 50-year-old Merlene Davies wasn't at her home in Candelaria, Santa Cruz de Tenerife, and her family became worried A massive search has been launched for an Irish woman missing in Tenerife. Local police are reportedly using dogs in their attempts to find 50-year-old Merlene Davies as concern grows for her wellbeing. Her family reported her missing after she failed to return to her home in Candelaria, Santa Cruz de Tenerife, on the evening of July 7. Deborah Clarke-Topper wrote on the Missing Persons Tenerife Facebook site she runs early this afternoon: 'Merlene Davies, 50 years old, an Irish citizen, has been missing from her home in Candelaria, Santa Cruz de Tenerife, since the 7th July 2025. It is unclear exactly what time she left but was not there as expected in the evening. 'Her family has reported the disappearance to the police, who are conducting a physical search, including with dogs. She is about 1m65 in height and of slim build.' Her sister Bronwyn Kloppers added in a separate social media a message: 'Please help us to find my sister. She left her home on Tuesday morning, time unknown and has not been seen since. A missing persons case has been opened with authorities and they are currently searching for her. 'She should be in the area of Candelaria, Santa Cruz, Tenerife. Please contact local authorities immediately if she is found.' She said: 'As I understand, last contact with her daughters was on Monday evening. Her one daughter went out with her father on Tuesday morning and upon returning realised that she was not there.' Well-placed sources said Merlene, thought to be a mum-of-two, could strictly speaking have gone missing anytime between 11pm on Monday and around 8am on Tuesday. It is not known where in Ireland she is from or how long she has been living in Tenerife. Anyone with any information on Merlene's whereabouts can email enquiries@ or call the group on (0034) 822 130 739. Police on the island have not yet made any official comment. Tenerife's mountainous interior is no stranger to missing person cases. Last year the country was captivated by the disappearance of Jay Slater. He was a British 19-year-old went missing following a night out in Tenerife. Friends and family launched a desperate search for him after his disappearance on Monday, June 17 2024. Spanish police confirmed a body was found almost a month later. The 19-year-old from Oswaldtwistle, Lancashire, disappeared after attending the NRG music festival with friends on the Spanish island in June last year. After a major search operation lasting nearly a month, his remains were discovered in steep, rocky terrain near the remote village of Masca. Investigator Mark Williams-Thomas has revealed new details about the case - including a final chat between Jay and a pal Brandon Hodgson, who was partying with the teenager on the night before he went missing. The two were messaging and talking on Snapchat video from the Airbnb rental in Masca on the morning that Jay left the secluded building and vanished. Brandon told Mark Williams-Thomas how he called Jay when he decided to walk back to Los Cristianos, where he was originally staying - a distance that would take approximately 10 hours on foot. "He said, 'I've started walking', he was laughing at first, then he sent me his location," said Brandon. "On the phone he said to me 'I've been walking for half an hour', I told him to go back and he said, 'I've already been walking for half an hour, I'm not going back, I don't want to go back, I just want to go home."
Business Wire
6 days ago
- Business
- Business Wire
NRG Energy Announces Appointment of Brad Bentley as President, NRG Consumer
HOUSTON--(BUSINESS WIRE)--NRG Energy, Inc. (NYSE:NRG) today announced the appointment of Brad Bentley as President, NRG Consumer, effective July 28, 2025. Mr. Bentley will report directly to Larry Coben, Chair, President, and Chief Executive Officer of NRG Energy. Mr. Bentley brings to NRG decades of experience in consumer innovation, product development, and marketing. He will lead NRG's Home Energy and Smart Home businesses, which serve more than 8 million customers across North America. As a leading competitive retail energy provider and smart home provider, NRG is redefining how customers experience and manage energy in their homes. Mr. Bentley will be responsible for advancing that vision by strengthening consumer loyalty, accelerating innovation, and delivering technology-enabled solutions that align with the next generation of customer needs. 'Brad's leadership will help bring NRG's consumer-first vision to the next level for millions of customers,' said Mr. Coben. 'His proven experience driving consumer engagement and strategic growth makes him exceptionally well-suited to take our Consumer business to greater heights. As we accelerate our integrated offerings and expand smart energy solutions, I am confident he will drive meaningful, long-term value, and I am excited for what's ahead." 'I am excited to join NRG, a company that is leading the convergence of Smart Home and Home Energy technologies,' said Mr. Bentley. 'As we build on NRG's strategy of delivering the best energy, technology, and services to transform the customer experience, I look forward to unlocking new innovation and customer-focused features that will allow us to grow and scale our offerings even faster.' Most recently, Mr. Bentley was Chief Operating Officer, Traveler Operation of Expedia Group, Inc., where he was responsible for the growth and execution of the $10 billion global Expedia Traveler business. Before Expedia, he served as CEO and President of Inspire Clean Energy, a clean energy technology company that was sold to Shell in 2021. Prior to this, he held numerous senior leadership roles at WarnerMedia, AT&T, and DIRECTV. Mr. Bentley holds a bachelor's degree in marketing from Vanguard University and a master's degree in marketing from Northwestern University. About NRG NRG Energy, Inc. is leading the future of energy—now. Our solutions power a smarter, brighter future by helping customers achieve today's goals while solving for the challenges of tomorrow. Every day, we deliver innovative natural gas, electricity, and smart home solutions to customers large and small across North America. Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are subject to certain risks, uncertainties and assumptions and typically can be identified by the use of words such as 'may,' 'should,' 'could,' 'objective,' 'projection,' 'forecast,' 'goal,' 'guidance,' 'outlook,' 'expect,' 'intend,' 'seek,' 'plan,' 'think,' 'anticipate,' 'estimate,' 'predict,' 'target,' 'potential' or 'continue' or the negative of these terms or other comparable terminology. Although NRG believes that the expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions; hazards customary in the power industry; the inability to execute NRG's strategies, initiatives, or partnerships; legislative and regulatory changes; and the other risks and uncertainties detailed in NRG's most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC at
Chicago Tribune
6 days ago
- Politics
- Chicago Tribune
Illinois Pollution Control Board denies stay to NRG Energy: ‘They are going to … remove the coal ash ponds from our lakefront'
Since proposing to remove one coal ash pond from the site of its decommissioned electric plant in Waukegan and cap another beside it in 2021, Houston-based NRG Energy has yet to begin the project or remedy coal ash contamination to the adjacent 10-acre grassy field. Though members of the Illinois General Assembly, local officials and environmental leaders want to see both ponds completely removed, NRG has resisted those efforts, as well as those of the Illinois Environmental Protection Agency to remediate the grassy field. Shortly after NRG announced its proposal in December of 2021, state Sen. Adriane Johnson, D-Buffalo Grove, and state Rep. Rita Mayfield, D-Waukegan, introduced legislation to require that all coal ash ponds along Lake Michigan in Illinois be removed. Easily gaining approval in the state Senate in early 2022, Mayfield did not bring the bill to the House floor because she said she was several votes short of a majority. She reintroduced the bill in 2023, and again this year. It remains a few votes short of the majority, she said. She said NRG has lobbied hard against it. 'They've done nothing except intensely lobby against legislation,' Mayfield said. 'They've spent countless dollars hiring lawyers to appeal court orders. They've done nothing but shirk their responsibilities. It's time for them to get the coal ash away from the lakefront.' Before making its proposal on the ponds in December of 2021, NRG tried to persuade the Illinois Pollution Control Board that the IEPA's rules were not applicable. The board ruled in March that NRG must obey. NRG asked the board for a stay while it appealed to the Illinois Appellate Court. The Illinois Pollution Control Board denied NRG's request for a stay during the appellate process on June 25 in Chicago, ruling the public will continue to be burdened by the existing contamination. In its ruling, the board wrote that NRG has avoided 'permitting oversight' despite rules that were put in place more than four years ago. 'A stay would impose a considerable hardship on the public because (the grassy field) — a demonstrated source of groundwater contamination — would remain outside IEPA's permitting oversight,' the court wrote. Erik Linden, a spokesperson for NRG, said in an email that the company is evaluating the board's decision before it decides its 'next steps.' It has 35 days from June 25 to appeal the stay order to the Illinois Appellate Court for the Second District, according to Illinois law. After the board issued its March 20 order in a unanimous 5-0 decision, NRG appealed to the Second District Appellate Court. The case remains pending there. With remediation of the grassy field in the hands of the Second District Appellate Court, Marie Tipsord, an attorney with the board, said the removal or capping of the coal ash ponds is in the hands of the IEPA, which must issue a permit for the work. Though originally NRG planned to remove the East Pond and cap the West Pond, the company now plans to cap both ponds, 'by installing a final cover system over the impoundment,' according to the plan the company filed with IEPA. Linden said NRG submitted operating and closure permits to the IEPA in a timely manner, and is 'awaiting their response.' Mayfield said she plans to continue working with her colleagues in the state legislature to get enough votes to approve her proposed law requiring all coal ash ponds near Lake Michigan to be removed. She is growing more hopeful that the recent court decisions will help lead to a good outcome. 'They are sending a message to NRG that this is the direction things are going,' she said. 'At some point, they are going to take responsibility and remove the coal ash ponds from our lakefront.'
