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We recently compiled a list of the 10 Stocks That Became Analyst Favorites This Week. In this article, we are going to take a look at where NRG Energy Inc. (NYSE:NRG) stands against the other analysts favorites.
US stocks registered a green day on Tuesday with the Dow surging up 538 points to end 1.24% higher. S&P 500 and Nasdaq also posted gains of 0.88% and 0.64% respectively, showcasing the strength of the American economy.
As for individual stocks, analysts continue to evaluate businesses based on any public information they can gather. Some of these insights turn into stock upgrades or downgrades while others reiterate the positive or negative outlook on the stocks. We came up with a similar list of stocks that have received analyst approval this week.
To come up with the list of 10 stocks moving on analyst optimism, we considered stocks with a market cap of at least $10 billion.
Close up image of an engineer inspecting the control panel of a modern power plant.
NRG Energy Inc. (NYSE:NRG)
NRG Energy Inc. is a home services and energy company that operates through corporate activities, Vivint smart home, and other segments. The company was upgraded by Evercore ISI from In-Line to Outperform with a target price hike from $74 to $126. The stock is up 111% in a year but analysts believe it is still undervalued.
NRG Energy’s consumer demand is increasing after a strategic partnership with Renew Home and Google Cloud. With this partnership, the company is well-positioned to utilize Renew Home’s technology to adopt clean energy. The improving gross margins add icing on the cake for NRG and continue to propel it to new 52-week highs.
Overall NRG ranks 3rd on our list of the stocks that became analyst favorites this week. While we acknowledge the 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 timeframe. If you are looking for an AI stock that is as promising as NRG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.