Sectors & Industries UtilitiesUtilities - Independent Power Producers
Best Independent Power Producer Stocks to Buy Now (2023)
Top independent power producer stocks in 2023 ranked by overall Zen Score. See the best independent power producer stocks to buy now, according to analyst forecasts for the utilities - independent power producers industry.

Industry: Utilities - Independent P...

Zen Score Price Valuation Financials Forecast Earnings & Revenue Dividends Ownership Technicals

Ticker	Company	Exchange	Industry	Market Cap	Price	1d %	EBITDA	P/E	D/E
VST	VISTRA CORP	NYSE	Utilities - Independent Power Producers	$13.22B	$36.96	-0.56%	$4.36B	10.74x	4.80
TAC	TRANSALTA CORP	NYSE	Utilities - Independent Power Producers	$2.12B	$8.05	-0.86%	$1.23B	5.18x	3.62
PAM	PAMPA ENERGY INC	NYSE	Utilities - Independent Power Producers	$2.61B	$47.37	0.72%	$580.00M	5.74x	1.08
NRG	NRG ENERGY INC	NYSE	Utilities - Independent Power Producers	$10.79B	$47.81	0.72%	-$720.00M	-6.21x	6.93
KEN	KENON HOLDINGS LTD	NYSE	Utilities - Independent Power Producers	$1.28B	$23.69	1.94%	-$911.10M	-1.18x	1.54

Independent Power Producer Stocks FAQ

What are the best independent power producer stocks to buy right now in Dec 2023?

According to Zen Score, the 3 best independent power producer stocks to buy right now are:

1. Vistra (NYSE:VST)

Vistra (NYSE:VST) is the top independent power producer stock with a Zen Score of 48, which is 14 points higher than the independent power producer industry average of 34. It passed 18 out of 38 due diligence checks and has strong fundamentals. Vistra has seen its stock return 56.68% over the past year, overperforming other independent power producer stocks by 25 percentage points.

Vistra has an average 1 year price target of $40.33, an upside of 9.13% from Vistra's current stock price of $36.96.

Vistra stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Vistra, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

2. Transalta (NYSE:TAC)

Transalta (NYSE:TAC) is the second best independent power producer stock with a Zen Score of 36, which is 2 points higher than the independent power producer industry average of 34. It passed 14 out of 38 due diligence checks and has average fundamentals. Transalta has seen its stock lose -12.97% over the past year, underperforming other independent power producer stocks by -44 percentage points.

3. Pampa Energy (NYSE:PAM)

Pampa Energy (NYSE:PAM) is the third best independent power producer stock with a Zen Score of 34, which is equal to the independent power producer industry average of 34. It passed 11 out of 33 due diligence checks and has average fundamentals. Pampa Energy has seen its stock return 80.94% over the past year, overperforming other independent power producer stocks by 49 percentage points.

Pampa Energy has an average 1 year price target of $43.00, a downside of -9.23% from Pampa Energy's current stock price of $47.37.

Pampa Energy stock has a consensus Hold recommendation according to Wall Street analysts. Of the 3 analysts covering Pampa Energy, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 33.33% have issued a hold, while 33.33% 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 11.78%, which is 7 percentage points higher than the independent power producer industry average of 4.78%. 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 -13.8% 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 3.16%, which is -2 percentage points lower than the independent power producer industry average of 4.78%. 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 -19.6% indicates that its dividend yield might not be sustainable for the long-term.

3. Vistra (NYSE:VST)

Vistra (NYSE:VST) has an annual dividend yield of 2.17%, which is -3 percentage points lower than the independent power producer industry average of 4.78%. 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 23.3% indicates that its dividend yield is sustainable for the long-term.

Why are independent power producer stocks up?

Independent power producer stocks were up 0.52% in the last day, and up 1.96% over the last week.

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

What are the most undervalued independent power producer stocks?

Based on WallStreetZen's Valuation Score, the 2 most undervalued independent power producer stocks right now are:

1. Transalta (NYSE:TAC)

Transalta (NYSE:TAC) is the most undervalued independent power producer stock based on WallStreetZen's Valuation Score. Transalta has a valuation score of 29, which is 12 points higher than the independent power producer industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Transalta's stock has dropped -12.97% in the past year. It has underperformed other stocks in the independent power producer industry by -44 percentage points.

2. Pampa Energy (NYSE:PAM)

Pampa Energy (NYSE:PAM) is the second most undervalued independent power producer stock based on WallStreetZen's Valuation Score. Pampa Energy has a valuation score of 29, which is 12 points higher than the independent power producer industry average of 17. It passed 2 out of 7 valuation due diligence checks.

Pampa Energy's stock has gained 80.94% in the past year. It has overperformed other stocks in the independent power producer industry by 49 percentage points.

Are independent power producer stocks a good buy now?

33.33% of independent power producer stocks rated by analysts are a strong buy right now. On average, analysts expect independent power producer stocks to fall by -1.75% over the next year.

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 3.31x.

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.