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.
NRG in -4.66% downward trend, sliding for three consecutive days on June 10, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where NRG declined for three days, in of 229 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for NRG moved out of overbought territory on June 04, 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 54 similar instances where the indicator moved out of overbought territory. In of the 54 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 09, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on NRG as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where NRG's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 .
NRG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 309 cases where NRG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 64, 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly 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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