Utilities Sector Looks Primed for a Bounce After First Pullback
While the rest of the market has been pulling back for the last three months, the utilities sector has been holding up rather well. In fact, of the ten main sectors, the utilities sector is the only one that is in positive territory since the beginning of October. The other nine are all down at least 5% or more. The energy sector is down over 23% during that time.
Looking through a number of charts last evening, there are several utilities stocks with similar chart patterns. They have formed trend channels over the last six months, and when the sector got hit with some selling last week, many of them dropped down to their lower rails.
One such stock that caught my eye was NRG Energy (NYSE: NRG). From December 13 through the close on December 24, NRG fell 15%. Over the last two trading sessions the stock has gained 6.6% and it looks like the stock is headed back up to the upper rail of its channel.
We see that the stochastic readings made a bullish crossover and that is a positive sign for the stock as well. We see when the stochastic readings made a bullish crossover in late October, the stock went on to gain 20% over the next month and a half.
Aroon Indicator for NRG shows an upward move is likely
NRG's Aroon Indicator triggered a bullish signal on June 12, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 304 similar instances where the Aroon Indicator showed a similar pattern. In of the 304 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 25, 2025. You may want to consider a long position or call options on NRG as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NRG advanced for three days, in of 354 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NRG moved out of overbought territory on June 30, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 55 similar instances where the indicator moved out of overbought territory. In of the 55 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for NRG turned negative on May 29, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NRG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NRG broke above its upper Bollinger Band on June 26, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NRG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 65, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NRG's P/B Ratio (6.676) is very high in comparison to the industry average of (1.710). P/E Ratio (6.068) is within average values for comparable stocks, (23.490). Projected Growth (PEG Ratio) (2.418) is also within normal values, averaging (2.640). Dividend Yield (0.022) settles around the average of (0.069) among similar stocks. P/S Ratio (0.555) is also within normal values, averaging (3.122).
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General Information
a company which produces, sells and delivers energy products and services
Industry ElectricUtilities
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