This Stock Can Rally

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This Stock Can Rally

This S&P 500 Stock Can Rally 83% In 2027

There is one stock in the S&P 500 which has the potential to rally by 83.8% in 2027. We are talking about NRG Energy (NRG), one of the largest energy companies in the USA.

NRG Energy sells natural gas and electricity to both businesses and households. Back in January 2026, NRG Energy also acquired 18 dual-fuel and natural gas plants from another company called LS Power.

NRG Energy Has Increased Its Generation Capacity

This move has added an additional capacity of 13GW. This has effectively doubled the generation fleet of the company. But despite increasing its generation capacity, the NRG Energy stock lost 39% of its value last year.

So, why is NRG Energy stock struggling? People are worried that NRG Energy has become too big and is now running a more complex business.

The company had to spend $6.4 billion in cash, issue new shares, and take on $ 3.2 billion in debt to complete the LS Power transaction. Now, the investors want evidence of whether this acquisition can deliver returns or not.

The earnings of NRG Energy are also under pressure. The adjusted EPS during Q2 was $1.49. This is a downgrade on a y/y basis. On top of that, the share count has also been increased.

Despite all the problems, analysts hold a positive view on the NRG Energy stock. According to them, NRG Energy stock has the potential to touch $190.53 in 2027. This means an upside of around 83.8% from the current levels.

Meanwhile, Wells Fargo and Barclays have set a target of $204 and $202 for the NRG Energy stock price. So, they are a lot more bullish on the NRG Energy stock.

Bullish forecasts like these make sense as the electricity demand remains high. The ongoing electrification trend and the demand from AI data centers have put pressure on the US grid. NRG Energy is well positioned to meet some of this demand.

If we talk about risks, the top of the list is debt and volatile power prices. So, if you can handle that type of risk and want something with a strong upside, then you can consider NRG Energy stock.

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