Sectors & Industries UtilitiesUtilities - Independent Power Producers
Best Independent Power Producer Stocks to Buy Now (2025)
Top independent power producer stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best independent power producer stocks to buy now. Learn More.

Industry: Utilities - Independent P...

Zen Rating Price Value Growth Financials Momentum Sentiment Forecast Dividends Due Diligence

Independent Power Producers is Zen Rated F and is the 118th ranked industry out of 145 stock market industries

Ticker	Company	Exchange	Industry	Market Cap	Price	1d %	EBITDA	P/E	D/E	Country
KEN	KENON HOLDINGS LTD	NYSE	Utilities - Independent Power Producers	$2.34B	$44.94	0.22%	$850.91M	3.94x	0.96	Singapore
NRG	NRG ENERGY INC	NYSE	Utilities - Independent Power Producers	$29.75B	$153.78	-3.36%	$2.14B	65.44x	9.53	United States
TAC	TRANSALTA CORP	NYSE	Utilities - Independent Power Producers	$3.71B	$12.50	-1.28%	$623.36M	-30.56x	4.61	Canada
PAM	PAMPA ENERGY INC	NYSE	Utilities - Independent Power Producers	$4.04B	$74.28	0.05%	$683.00M	6.46x	0.93	Argentina
VST	VISTRA CORP	NYSE	Utilities - Independent Power Producers	$68.66B	$202.35	-2.48%	$6.82B	31.04x	6.92	United States
DGXX	DIGI POWER X INC	NASDAQ	Utilities - Independent Power Producers	$93.09M	$2.82	-20.57%	$500.01k	-6.56x	0.36	Canada

Independent Power Producer Stocks FAQ

What are the best independent power producer stocks to buy right now in Aug 2025?

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best independent power producer stocks to buy right now are:

1. Kenon Holdings (NYSE:KEN)

Kenon Holdings (NYSE:KEN) is the #1 top independent power producer stock out of 6 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Kenon Holdings (NYSE:KEN) is: Value: C, Growth: C, Momentum: A, Sentiment: C, Safety: C, Financials: C, and AI: C.

Kenon Holdings (NYSE:KEN) has a Due Diligence Score of 39, which is 5 points higher than the independent power producer industry average of 34.

KEN passed 15 out of 38 due diligence checks and has average fundamentals. Kenon Holdings has seen its stock return 81.83% over the past year, underperforming other independent power producer stocks by -16 percentage points.

2. Nrg Energy (NYSE:NRG)

Nrg Energy (NYSE:NRG) is the #2 top independent power producer stock out of 6 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Nrg Energy (NYSE:NRG) is: Value: C, Growth: C, Momentum: B, Sentiment: F, Safety: C, Financials: C, and AI: C.

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 35, which is 1 points higher than the independent power producer industry average of 34.

NRG passed 14 out of 38 due diligence checks and has average fundamentals. Nrg Energy has seen its stock return 79.6% over the past year, underperforming other independent power producer stocks by -19 percentage points.

Nrg Energy has an average 1 year price target of $166.78, an upside of 8.45% from Nrg Energy's current stock price of $153.78.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 9 analysts covering Nrg Energy, 77.78% have issued a Strong Buy rating, 0% have issued a Buy, 22.22% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Transalta (NYSE:TAC)

Transalta (NYSE:TAC) is the #3 top independent power producer stock out of 6 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Transalta (NYSE:TAC) is: Value: D, Growth: C, Momentum: B, Sentiment: C, Safety: C, Financials: C, and AI: C.

Transalta (NYSE:TAC) has a Due Diligence Score of 7, which is -27 points lower than the independent power producer industry average of 34.

TAC passed 3 out of 38 due diligence checks and has weak fundamentals. Transalta has seen its stock return 44.67% over the past year, underperforming other independent power producer stocks by -54 percentage points.

Transalta has an average 1 year price target of $19.83, an upside of 58.66% from Transalta's current stock price of $12.50.

Transalta stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Transalta, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

What are the independent power producer stocks with highest dividends?

Out of 2 independent power producer stocks that have issued dividends in the past year, the 2 independent power producer stocks with the highest dividend yields are:

1. Nrg Energy (NYSE:NRG)

Nrg Energy (NYSE:NRG) has an annual dividend yield of 0.55%, which is the same as the independent power producer industry average of 0.66%. Nrg Energy's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Nrg Energy's dividend has shown consistent growth over the last 10 years.

Nrg Energy's dividend payout ratio of 54.8% indicates that its dividend yield is sustainable for the long-term.

2. Vistra (NYSE:VST)

Vistra (NYSE:VST) has an annual dividend yield of 0.44%, which is the same as the independent power producer industry average of 0.66%. Vistra's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Vistra's dividend has shown consistent growth over the last 10 years.

Vistra's dividend payout ratio of 13.5% indicates that its dividend yield is sustainable for the long-term.

Why are independent power producer stocks down?

Independent power producer stocks were down -1.07% in the last day, and down -0.66% over the last week.

We couldn't find a catalyst for why independent power producer stocks are down.

What are the most undervalued independent power producer stocks?

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued independent power producer stocks right now are:

1. Pampa Energy (NYSE:PAM)

Pampa Energy (NYSE:PAM) is the most undervalued independent power producer stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Pampa Energy has a valuation score of 43, which is 12 points higher than the independent power producer industry average of 31. It passed 3 out of 7 valuation due diligence checks.

Pampa Energy's stock has gained 40.78% in the past year. It has underperformed other stocks in the independent power producer industry by -57 percentage points.

2. Nrg Energy (NYSE:NRG)

Nrg Energy (NYSE:NRG) is the second most undervalued independent power producer stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Nrg Energy has a valuation score of 14, which is -17 points higher than the independent power producer industry average of 31. It passed 1 out of 7 valuation due diligence checks.

Nrg Energy's stock has gained 79.6% in the past year. It has underperformed other stocks in the independent power producer industry by -19 percentage points.

3. Kenon Holdings (NYSE:KEN)

Kenon Holdings (NYSE:KEN) is the third most undervalued independent power producer stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Kenon Holdings has a valuation score of 71, which is 40 points higher than the independent power producer industry average of 31. It passed 5 out of 7 valuation due diligence checks.

Kenon Holdings's stock has gained 81.83% in the past year. It has underperformed other stocks in the independent power producer industry by -16 percentage points.

Are independent power producer stocks a good buy now?

40% of independent power producer stocks rated by analysts are a strong buy right now. On average, analysts expect independent power producer stocks to rise by 10.74% over the next year.

0% of independent power producer stocks have a Zen Rating of A (Strong Buy), 0% of independent power producer stocks are rated B (Buy), 83.33% are rated C (Hold), 16.67% are rated D (Sell), and 0% are rated F (Strong Sell).

What is the average p/e ratio of the utilities - independent power producers industry?

The average P/E ratio of the utilities - independent power producers industry is 35.61x.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.

Independent Power Producer Stocks FAQ

1. Kenon Holdings (NYSE:KEN)

2. Nrg Energy (NYSE:NRG)

3. Transalta (NYSE:TAC)

1. Nrg Energy (NYSE:NRG)

2. Vistra (NYSE:VST)

1. Pampa Energy (NYSE:PAM)

2. Nrg Energy (NYSE:NRG)

3. Kenon Holdings (NYSE:KEN)

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