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 A and is the ranked industry out of 145 stock market industries

Ticker	Company	Exchange	Industry	Market Cap	Price	1d %	EBITDA	P/E	D/E	Country
PAM	PAMPA ENERGY INC	NYSE	Utilities - Independent Power Producers	$4.13B	$75.90	-5.41%	$984.00M	13.80x	0.96	Argentina
NRG	NRG ENERGY INC	NYSE	Utilities - Independent Power Producers	$18.75B	$94.68	-1.51%	$3.17B	18.42x	8.69	United States
VST	VISTRA CORP	NYSE	Utilities - Independent Power Producers	$42.19B	$124.46	-1.45%	$6.85B	17.38x	5.78	United States
KEN	KENON HOLDINGS LTD	NYSE	Utilities - Independent Power Producers	$1.74B	$33.06	-6.21%	$401.49M	10.33x	1.70	Singapore
TAC	TRANSALTA CORP	NYSE	Utilities - Independent Power Producers	$2.85B	$9.57	-1.24%	$819.72M	23.06x	4.39	Canada
DGHI	DIGI POWER X INC	NASDAQ	Utilities - Independent Power Producers	$43.58M	$1.32	7.32%	$816.23k	-2.44x	0.43	Canada

Independent Power Producer Stocks FAQ

What are the best independent power producer stocks to buy right now in Mar 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. Pampa Energy (NYSE:PAM)

Pampa Energy (NYSE:PAM) is the #1 top independent power producer stock out of 6 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Pampa Energy (NYSE:PAM) is: Value: C, Growth: C, Momentum: A, Sentiment: A, Safety: C, Financials: C, and AI: B.

Pampa Energy (NYSE:PAM) has a Due Diligence Score of 67, which is 25 points higher than the independent power producer industry average of 42.

PAM passed 22 out of 33 due diligence checks and has strong fundamentals. Pampa Energy has seen its stock return 78.46% over the past year, overperforming other independent power producer stocks by 11 percentage points.

Pampa Energy has an average 1 year price target of $93.50, an upside of 23.19% from Pampa Energy's current stock price of $75.90.

Pampa Energy stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Pampa Energy, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

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 B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

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

Nrg Energy (NYSE:NRG) has a Due Diligence Score of 45, which is 3 points higher than the independent power producer industry average of 42.

NRG passed 17 out of 38 due diligence checks and has strong fundamentals. Nrg Energy has seen its stock return 45.66% over the past year, underperforming other independent power producer stocks by -22 percentage points.

Nrg Energy has an average 1 year price target of $123.29, an upside of 30.21% from Nrg Energy's current stock price of $94.68.

Nrg Energy stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Nrg Energy, 57.14% have issued a Strong Buy rating, 14.29% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Vistra (NYSE:VST)

Vistra (NYSE:VST) is the #3 top independent power producer stock out of 6 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

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

Vistra (NYSE:VST) has a Due Diligence Score of 49, which is 7 points higher than the independent power producer industry average of 42.

VST passed 19 out of 38 due diligence checks and has strong fundamentals. Vistra has seen its stock return 99.2% over the past year, overperforming other independent power producer stocks by 32 percentage points.

Vistra has an average 1 year price target of $173.00, an upside of 39% from Vistra's current stock price of $124.46.

Vistra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Vistra, 62.5% have issued a Strong Buy rating, 37.5% 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 4 independent power producer stocks that have issued dividends in the past year, the 3 independent power producer stocks with the highest dividend yields are:

1. Kenon Holdings (NYSE:KEN)

Kenon Holdings (NYSE:KEN) has an annual dividend yield of 11.49%, which is 8 percentage points higher than the independent power producer industry average of 3.64%. Kenon Holdings's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Kenon Holdings's dividend has shown consistent growth over the last 10 years.

Kenon Holdings's dividend payout ratio of 118.8% indicates that its high dividend yield might not be sustainable for the long-term.

2. Nrg Energy (NYSE:NRG)

Nrg Energy (NYSE:NRG) has an annual dividend yield of 1.29%, which is -2 percentage points lower than the independent power producer industry average of 3.64%. 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 32.3% indicates that its dividend yield is sustainable for the long-term.

3. Transalta (NYSE:TAC)

Transalta (NYSE:TAC) has an annual dividend yield of 1.25%, which is -2 percentage points lower than the independent power producer industry average of 3.64%. Transalta's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Transalta's dividend has not shown consistent growth over the last 10 years.

Transalta's dividend payout ratio of 52.9% indicates that its dividend yield is sustainable for the long-term.

Why are independent power producer stocks down?

Independent power producer stocks were down -2.82% in the last day, and up 5.5% 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. Nrg Energy (NYSE:NRG)

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

Nrg Energy has a valuation score of 29, which is -7 points higher than the independent power producer industry average of 36. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates NRG a Valuation Rating of "B".

Nrg Energy's stock has gained 45.66% in the past year. It has underperformed other stocks in the independent power producer industry by -22 percentage points.

2. Pampa Energy (NYSE:PAM)

Pampa Energy (NYSE:PAM) 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.

Pampa Energy has a valuation score of 71, which is 35 points higher than the independent power producer industry average of 36. It passed 5 out of 7 valuation due diligence checks.

Pampa Energy's stock has gained 78.46% in the past year. It has overperformed other stocks in the independent power producer industry by 11 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 43, which is 7 points higher than the independent power producer industry average of 36. It passed 3 out of 7 valuation due diligence checks.

Kenon Holdings's stock has gained 34.72% in the past year. It has underperformed other stocks in the independent power producer industry by -33 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 34.6% over the next year.

0% of independent power producer stocks have a Zen Rating of A (Strong Buy), 60% of independent power producer stocks are rated B (Buy), 20% are rated C (Hold), 20% 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 17.49x.

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. Pampa Energy (NYSE:PAM)

2. Nrg Energy (NYSE:NRG)

3. Vistra (NYSE:VST)

1. Kenon Holdings (NYSE:KEN)

2. Nrg Energy (NYSE:NRG)

3. Transalta (NYSE:TAC)

1. Nrg Energy (NYSE:NRG)

2. Pampa Energy (NYSE:PAM)

3. Kenon Holdings (NYSE:KEN)

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