NRG Energy (NRG) Stock Looks Reasonably Priced For Its Current Earnings

NRG Energy has delivered a powerful long term run for shareholders, yet the stock has recently pulled back sharply. With that history in mind, the key issue now is whether the current share price can still be explained by the company’s earnings power. Over the past 5 years the stock has gained 186.1%, which puts a lot of weight on whether its earnings can support that kind of rerating. The business model is tightly linked to power generation and retail supply, so future profitability depends...