How NRG Energy Became The Standout Utility Gainer In The First Half Of 2025

NRG Energy (NRG) has become the top-performing utility stock and the second-best gainer in the S&P 500 this year, fueled by soaring electricity demand amid a rapidly expanding AI-driven data center sector.

The stock has risen about 78% between January and June, trailing only defense-focused firm Palantir in terms of gains in the S&P 500 index. Its year-to-date performance far outshone the 5.5% gain for both the S&P 500 and the tech-focused Nasdaq Composite.
 
The utility firm has been riding on optimism surrounding power demand and favorable ratings from most Wall Street analysts, who have noted that the stock is undervalued. The stock closed at $160.58 on the last trading day of June.

Retail sentiment for NRG on Stocktwits has risen into ‘bullish’ (72/100) territory from ‘neutral’ at the start of the year, while following has gone up by 16% over the past 12 months.

According to TheFly, Barclays initiated coverage for the stock last week with an ‘Overweight’ rating as it believes that NRG offers investors a compelling opportunity to gain exposure to the independent power producer sector.

The brokerage noted that NRG has one of the most tangible upside sensitivities to power prices, all while maintaining one of the cheapest valuations in the market.

The Houston, Texas-based company is rapidly expanding its capacity this year through the addition of new plants and acquisitions. In May, the company agreed to buy natural gas generation facilities and a commercial and industrial virtual power plant platform from LS Power for an enterprise value of $12 billion.

The S&P 500 Utilities sector has gained 7.3% over the past year.

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